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P&G profit up 37 percent on cost cuts, higher home care sales

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[August 01, 2014]  (Reuters) - Procter & Gamble Co, the world's largest household products maker, reported a 37 percent rise in quarterly profit as its cost cutting efforts paid off and organic sales rose in its home care business.

Shares of the maker of Pampers diapers and Tide detergent rose more than 2 percent before the bell.

P&G has sought to cut expenses by streamlining management, lowering overhead and marketing costs, and cutting jobs under a five-year, $10 billion restructuring plan announced in February 2012.

The company's operating expenses fell 7 percent $6.28 billion in the fourth quarter ended June 30.

Organic sales, which excludes the impact of divestitures and acquisitions, rose 1 percent in P&G's fabric care and home care division.

The business, which is the company's largest revenue contributor, sells products such as Febreze air freshener and Duracell batteries.

Total organic sales rose 2 percent, but currency headwinds wiped out the gains. Net sales fell 1 percent to $20.16 billion.

Net profit attributable to the company rose to $2.58 billion, or 89 cents per share, from $1.88 billion, or 64 cents per share, a year earlier.

P&G's core earnings, which excludes one-time items, was 95 cents per share.

Analysts on average expected the company to earn 91 cents per share on revenue of $20.48 billion, according to Thomson Reuters I/B/E/S.

P&G's shares were up 2.2 percent at $78.99 in premarket trading on Friday.

(Reporting by Devika Krishna Kumar in Bangalore; Editing by Savio D'Souza)

[ 2014 Thomson Reuters. All rights reserved.]

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