P&G Reports First Quarter EPS of $1.03 Up 12% on 9% Sa...(arnings. Capital expenditures were 3.2% ...),Health

The company reiterated that it maintains credit ratings in the top five percent of all publicly traded companies which should allow the company to continue accessing credit markets without issue.

Business Segment Discussion

The following provides perspective on the company's July - September quarter results by business segment.

Beauty GBU

-- Beauty net sales increased 12 percent during the quarter to $5.1 billion. Net sales were up due to a four percent increase in volume, a two percent pricing impact and a six percent favorable foreign exchange impact. Hair Care volume grew mid-single digits behind strong growth in developing regions. Globally, all major retail hair care brands contributed to volume growth led by mid-single digit growth of Pantene and double-digit growth of Head & Shoulders and Rejoice. This was partially offset by a low-single digit decline in Professional Hair Care. Cosmetics volume grew double digits behind continued growth of Cover Girl. Skin Care volume grew low-single digits due to double-digit growth of SK-II. Prestige Fragrances volume declined low- single digits due mainly to a shift in initiative timings to the second half of fiscal 2009. Earnings grew nine percent during the quarter to $754 million as sales growth and lower SG&A expenses as a percentage of net sales were partially offset by reduced gross margin from higher commodity costs.

-- Grooming net sales were up six percent to $2.1 billion for the quarter. Volume declined one percent due to a double-digit decline of Braun. Blades & Razors volume grew low-single digits as double-digit growth of Gillette Fusion and high-single digit growth of Venus were mostly offset by declines in legacy shaving systems. Global market share of the blades and razors category increased slightly for the quarter. Braun volume was down due to a double- digit decline of male hair removers, t
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