NEW YORK (CNNMoney.com) -- Procter & Gamble shares tumbled more than 3% Tuesday after the consumer products maker announced lower-than-expected earnings and sales in its fiscal fourth quarter.
The Cincinnati-based company said increased spending on marketing new products was mainly to blame for its lower profit, which slipped to $2.19 billion, or 71 cents per share, from $2.45 billion, or 80 cents per share, in the year-earlier quarter.
Analysts polled by Thomson Reuters had expected income of $2.3 billion, or 73 cents per share, in the quarter ended June 30.
Driven by new product launches, sales rose 5% to $18.93 billion. But that number still fell short of analysts' forecasts, which predicted $19.1 billion.
Over the last quarter, P&G (PG, Fortune 500) unveiled a new Gillette men's shaving razor, an Olay Regenerist facial treatment and a Gucci fragrance, and relaunched its Pantene shampoo line in North America.
"The investments we've made in innovation, marketing support and consumer value have delivered accelerating unit volume and profitable market share growth throughout the year, which are clear indications that our strategy is working," P&G CEO Bob McDonald said in a statement.
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