Operating cash flow was $3.2 billion, an increase of nine percent versus the base period. Working capital used $220 million more cash versus the base period, primarily due to business growth. Free cash flow as a percentage of net earnings was 87%, roughly in-line with the year-ago level. Capital expenditures were 2.7% of net sales during the quarter.
The company repurchased $2.6 billion of P&G stock during the quarter as part of the company's previously announced share repurchase program. The company began purchasing shares under this program in July 2007.
Business Segment Discussion
The following provides perspective on the company's July-September quarter results by business segment.
-- Beauty net sales increased six percent during the quarter to $4.6
billion. Sales were up behind three percent organic volume growth and
a positive one percent product mix impact from disproportionate growth
on Prestige Fragrances. Favorable foreign exchange had a three percent
impact on net sales. Prestige Fragrances delivered double-digit sales
growth behind strong results on Dolce & Gabbana, Hugo Boss and Lacoste.
Hair Care sales were up mid-single digits driven by double-digit
developing region growth behind Pantene and Head & Shoulders. In Skin
Care, Olay sales were up mid-single digits on top of a very strong base
period in North America that included the launch of Olay Definity.
Olay facial moisturizers market share in the U.S. increased more than
one point versus the year-ago period. Growth on Olay was partially
offset by lower SK-II sales due to the business disruption in Asia that
started in September 2006, leading to modest overall sales growth in
|SOURCE The Procter & Gamble Company|
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