P&G Reports First Quarter EPS of $1.03 Up 12% on 9% Sa...( CINCINNATI Oct. 29 2008 /- The Pr...),Health

CINCINNATI, Oct. 29, 2008 /PRNewswire-FirstCall/ -- The Procter & Gamble Company (NYSE: PG) announced net sales growth of nine percent for the July - September quarter to $22.0 billion. Organic sales were up five percent, delivering at the mid-point of the Company's four to six percent target range. Sales growth was led by strong growth in the Beauty, Fabric Care & Home Care and Baby Care & Family Care segments. Diluted net earnings per share increased 12 percent to $1.03 for the quarter.

"This quarter was yet another example of the strength of P&G's balanced brand and geographic portfolio," said Chairman of the Board and Chief Executive Officer A.G. Lafley. "We continue focusing on leading innovation and improving productivity to deliver superior consumer and shareholder value. This focus on delighting consumers with trusted household and personal care products that consumers purchase weekly and use daily gives me continuing confidence P&G will deliver target growth over the long term, even in a challenging economic environment."

Executive Summary

-- Net sales increased nine percent to $22.0 billion for the quarter driven by double-digit growth in developing regions. Organic sales, which exclude the impacts of acquisitions, divestitures and foreign exchange, were up five percent for the quarter. This was the 25th consecutive quarter in which P&G delivered organic sales at or above target.

-- Diluted net earnings per share increased 12 percent to $1.03 for the quarter. Net earnings were up nine percent to $3.3 billion due to sales growth and higher non-operating gains.

-- Operating margin declined 60 basis points for the quarter as a reduction in selling, general and administrative (SG&A) expenses was more
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