Procter & Gamble Co. tempered its earnings outlook for the year because of rising costs and still-sluggish economies in the United States and other developed countries.

The maker of Pampers diapers, Tide detergent and Pantene shampoo reported Thursday that net income and sales rose in its third quarter, led by sales in emerging markets.

P&G, based in Cincinnati, said net income was $2.87 billion, up 11 percent over last year. Earnings per share were 96 cents on revenue of $20.23 billion. Analysts expected 97 cents a share on $20.24 billion.

P&G shares fell $1.17 to $62.85 in premarket trading. They have traded in a 52-week range of $39.37 and $66.95.

The world's largest consumer products maker and its competitors face rising costs for key raw materials such as pulp and resin and fuel and have begun testing household tolerance for higher prices.

Jon Moeller, chief financial officer, said P&G's commodity costs are increasing even faster than expected earlier, now estimated at $1.8 billion higher for the year.

P&G increased prices in the quarter on Gillette blades and razors and Duracell batteries, and just hiked prices on Pampers diapers and wipes, Charmin toilet paper and Bounty paper towels. Moeller said pulp costs are up 10 percent for the paper-related products. He said diesel oil is up 25 percent, adding to transportation costs, while resin used in packaging rose 15 percent.

The company Thursday dropped the high end of its earnings outlook for the year, to between $3.91 and $3.96 per share from $4.01. Analysts expect $3.96 on $82.02 billion in revenue.

For the current quarter that ends in June, P&G expects earnings of 80-85 cents per share, with net sales expected to grow 8 percent to 10 percent with the help of higher prices and favorable foreign exchange.

Analysts surveyed by FactSet expect, on average, 85 cents on $20.28 billion, a sales increase of 7 percent.