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P&G posts gains in 2Q
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January 25, 1999: 10:15 a.m. ET
Consumer products giant hits analysts' target despite world currency woes
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NEW YORK (CNNfn) - Consumer products giant Procter & Gamble Co. said Monday earnings per share rose 10 percent in its fiscal second quarter, despite the negative impact of currency troubles in several markets.
The Cincinnati-based company, which had warned investors last month of the currency-related hit it was likely to face, said its second-quarter net income rose to $1.14 billion, or 78 cents per diluted share, on revenue of $9.93 billion.
That met analysts' expectations as compiled by First Call, which tracks such results.
A year earlier, P&G earned $1.05 billion, or 71 cents per share, on revenue of $9.64 billion.
Shares of Dow member P&G (PG) added 1/16 to 85-3/8 in New York Stock Exchange trading early Monday.
Top executives said they expect P&G, the maker of Folgers coffee, Pampers diapers and Bounty paper towels -- and the world's largest advertiser -- to hold to its 11 to 14 percent earnings growth target for the year.
"We are very pleased with our continued margin improvement, and we are looking forward to an acceleration of our sales growth in the second half of the year behind a strong slate of initiatives," P&G CEO Durk Jager said.
"While we may be somewhat below that in the January-March quarter, we expect very strong April-June results as our business in Asia continues to recover, our new initiatives fully expand, and our business in Russia begins to stabilize," he added.
Net income rose 12 percent in its North American market, due to improved pricing in its laundry and cleaning, beauty care and paper lines. Unit volume climbed 5 percent in both Asia and Latin America.
Net sales in its Europe, Middle East and Africa region increased 3 percent, despite a 4 percent decline in unit volume due to the economic crisis and the currency devaluation in Russia. 
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Procter & Gamble
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