P&G Reports First Quarter EPS of $1.03 Up 12% on 9% Sa...(et earnings increased two percent for th...),Health

-- Snacks, Coffee and Pet Care net sales increased nine percent to $1.2 billion for the quarter on two percent volume growth. Pricing contributed seven percent to net sales due to multiple price increases in Coffee and Pet Care, and favorable foreign exchange added two percent to net sales. These were partially offset by a negative two percent product mix impact from the disproportionate growth of Snacks, which has lower selling prices than the segment average. Snacks volume increased mid-single digits due to double- digit growth in North America behind strong base business growth of Pringles and continued growth from Pringles Extreme Flavors and Stix initiatives. Coffee sales grew double digits due to the combination of volume growth and pricing. Coffee volume grew low-single digits behind the Folgers Roast & Ground restage and continued expansion of the Dunkin Donuts(R) line. Pet Care sales increased high-single digits due to the impact of pricing. Pet Care volume declined low-single digits as growth of Iams was more than offset by a decline of Eukanuba. Net earnings increased six percent to $120 million for the quarter. Importantly, earnings growth was reduced by over twenty percent due to Katrina insurance claim receipts in the base. Net earnings increased behind sales growth and lower SG&A expenses as a percentage of net sales, which were partially offset by higher commodity costs.

Household Care GBU

-- Fabric Care and Home Care net sales increased 10 percent during the quarter to $6.5 billion. Volume grew two percent behind mid-single digit growth of Fabric Care from the launch of Tide and Downy Total Care, trade inventory increases prior to September price increases in North America and innovation in developing regions. Volume in Home Care d
'/>"/>