Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

P&G tumbles on earnings disappointment

By Annalyn Censky, staff reporter

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.

P&G fell 3.4%, or $2.12, to close at $59.94 per share. To top of page

Search for Jobs

Index Last Change % Change
Dow 18,145.71 -16.64 -0.09%
Nasdaq 5,257.40 15.57 0.30%
S&P 500 2,141.16 -0.18 -0.01%
Treasuries 1.74 -0.01 -0.40%
Data as of 7:55pm ET
Company Price Change % Change
Reynolds American In... 53.78 6.61 14.01%
Chesapeake Energy Co... 6.68 -0.23 -3.33%
AT&T Inc 37.49 -1.16 -3.00%
Microsoft Corp 59.66 2.41 4.21%
Bank of America Corp... 16.67 0.11 0.66%
Data as of Oct 21


The combo brings together AT&T's wireless and Internet business and DirecTV with Time Warner programming, including CNN, HBO and Warner Bros. More

Passes for the new National Museum of African-American History and Culture in Washington D.C. are 'sold out' through March 2017. More

A Chinese firm that makes components for surveillance video cameras admits their technology was used, in part, to carry out Friday's cyberattack More

The University of Illinois partnered with Coursera to launch one of the most affordable online MBA programs yet. More