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updated: 4/24/2013 7:17 AM

Procter & Gamble 3Q net rises 6 pct on cost cuts

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  • A Procter & Gamble product at Target in Durham, N.C.

      A Procter & Gamble product at Target in Durham, N.C.
    Associated Press

 
Associated Press

CINCINNATI -- Procter & Gamble says its net income rose 6 percent in the fiscal third quarter, as the company cut costs and gained market share in North America, but revenue fell short of analyst expectations.

P&G also issued a weak fourth-quarter earnings outlook.

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The Cincinnati-based company's products range from Tide detergent to Crest toothpaste and Gillette razors. It is facing a weakened European economy and slowdown in China.

The world's largest consumer product maker says net income for the January-to-March quarter rose to $2.57 billion, or 88 cents per share. That compares with net income of $2.41 billion, or 82 cents per share last year.

Excluding restructuring charges and related to the devaluation of the Venezuelan currency, earnings totaled 99 cents per share. Analysts expected 96 cents, according to FactSet.

"Strong cost savings enabled us to exceed our outlook on the bottom line," CEO Bob McDonald said in a statement.

P&G is aiming to save $10 billion by 2016. Last year, P&G admitted missteps in some emerging markets -- which make up nearly 40 percent of its sales -- when it expanded in certain product areas too quickly. But it then introduced a plan to focus on its 20 biggest new products and its 10 most-profitable emerging markets in an effort to gain more market share.

Revenue rose 2 percent to $20.6 billion. That fell short of analyst expectations of $20.72 billion.

The company says it held or increased market share in categories representing more than 50 percent of its sales globally and two-thirds of its sales in the U.S.

The company expects fourth-quarter net income of 69 cents to 77 cents per share, excluding one-time items. Analysts expect 82 cents per share.

For the year, it expects net income of $3.96 to $4.04 per share. Analysts expect $4.37 per share.

Shares fell $1.30 during premarket trading to $81.24.

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