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"It sounds like the board needed a change at the top," said Bernstein analyst Ali Dibadj. "We thought maybe there would be a little bit more of a test runway for current management, but clearly, frustration was very high." P&G last year acknowledged that it had made missteps in some emerging markets
-- which make up nearly 40 percent of its sales -- when it expanded in some product areas too quickly. And it introduced a plan to focus on its 20 biggest new products and its 10 most-profitable emerging markets, which has led to improving market share. The moves seemed to be working. In P&G's most recent January-to-March quarter, net income rose 6 percent to $2.57 billion, as revenue inched up 2 percent to $20.6 billion. But that fell slightly short of analysts' expectations of $20.72 billion. It had also begun to gain market share in North America. But fourth-quarter guidance was below expectations as the company spent more to market new products. Lafley said the board approached him "very recently" after McDonald decided to retire and asked him to reclaim the top spot. "Frankly, duty called," he said in an interview with The Associated Press. "I'm back, I'm full on." His first order of business, he said, will be to stay on the strategic course that the company has been implementing, focusing on core developed markets as well as developing markets, introducing new products and cutting costs. "I spent nearly 33 years at this company, and the company has got some momentum right now," he said. P&G's shares rose 54 cents to $79.24 in aftermarket trading.
[Associated
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