NEW YORK (AP) — Procter & Gamble, the world’s largest consumer goods company, reported that its fiscal second quarter profit more than doubled as its new focus helped it gain market share and boost its bottom line.
Like many companies, Procter & Gamble has focused on growing in emerging markets China and India to drive growth as more developed regions like North America have slowed. But the company, based in Cincinnati, grew too fast and kept prices high. As a result, the company lost market share in more than half of its categories.
But last year, P&G launched a massive restructuring plan that aimed to cut costs and focus on the company’s most profitable products and geographies. The company also lowered prices for products in the U.S. and cut jobs.
The results show that the strategy is working. The company held or grew market share in businesses representing almost 50 percent of sales during the fiscal second quarter that ended in December.
The company said its plan to cut 5,700 non-manufacturing jobs by the end of the fiscal year is 95 percent complete, about four or five months ahead of schedule. It also plans to cut 2 to 4 percent more jobs per year in fiscal 2014 to 2016.
During the second quarter that ended Dec. 31, P&G earned $4.06 billion, or $1.39 per share, up from $1.69 billion, or 57 cents per share, in the same quarter last year. Excluding special items, it earned $1.22 per share. Revenue increased 2 percent to $22.18 billion. Analysts polled by FactSet expected earnings of $1.11 per share on $21.86 billion in revenue.