Consumer products giant Procter & Gamble Co. reported Thursday that its profit fell 1 percent in its third quarter on higher costs and taxes, including from the U.S. healthcare overhaul. But sales jumped 7 percent as households around the globe responded to new products, price cuts and stepped-up advertising.
The maker of Tide detergent and Pampers diapers reported net income of $2.59 billion, or 83 cents per share, for the quarter. That compares with $2.61 billion, or 84 cents a year ago, while sales rose to $19.2 billion.
While that was better than Wall Street projections of 82 cents per share, analysts surveyed by Thomson Reuters had expected higher revenue of $19.5 billion.
P&G shares fell 95 cents to $62.22 in premarket trading. They have traded in a 52-week range of $48.25 to $64.58.
P&G said its core earnings per share, excluding tax, legal and restructuring charges, were 89 cents, up 10 percent. The company took a 5-cents-a-share charge for the recently passed U.S. health care reform.
P&G's CEO said the results topped the company's core earnings goals.
"Volume growth was strong as we accelerated our pace of innovation and increased marketing support," Bob McDonald, chairman and CEO, said in a statement.
The company also lifted the low end of its guidance range for diluted net earnings per share for the full year by 4 cents, to a range of $4.06 to $4.12. Analysts expect $4.14.
P&G says it expects sales to rise 6 percent to 7 percent in the current fourth quarter, with earnings per share in a range of 68 cents to 74 cents. Analysts are expecting 76 cents.
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