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P&G fiscal 1st quarter net income rises

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CINCINNATI (AP) -- Procter & Gamble says its first-quarter net income rose 8 percent as world's largest consumer company sold more of its detergent and diapers globally and cut costs.

The results were in line with Wall Street expectations.

The Cincinnati-based company, whose products range from Tide detergent to Crest toothpaste and Gillette razors, is in the midst of a turnaround plan that includes focusing on its most profitable core businesses and cutting costs to save $10 billion by fiscal 2016.

In the developed markets such as the U.S. and Europe, P&G has been trying to adjust its prices to stay competitive, cutting prices on some products and raising prices on others. P&G said it held or grew market share in two-thirds of its product categories globally.

"P&G's first quarter results were consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year," said CEO A.G. Lafley in a statement.

Net income for the three months ended Sept. 30 after paying preferred dividends rose to $3.03 billion, or $1.04 per share. That compares with net income of $2.81 billion, or 96 cents per share, last year. Excluding one-time items net income was $1.05 per share, matching analyst expectations, according to FactSet.

Revenue rose 2 percent to $21.2 billion from $20.74 billion. Analysts expected revenue of $21 billion.

Total volume rose 4 percent as increases in beauty, fabric care and home care, and baby, feminine and family care categories was offset by declines in grooming and health care.

P&G reiterated its 2014 guidance of earnings excluding one-time items to rise 5 percent to 7 percent, implying results of $4.25 to $4.33 per share. It expects revenue to rise 1 percent to 2 percent, implying revenue of $85 billion to $85.85 billion. Analysts expect earnings of $4.29 per share on revenue of $85.71 billion.

Oppenheimer & Co. Joseph Altobello said that while he is "encouraged" by "healthy" growth in sales and volume, P&G's turnaround will take time, and the future improvement is already reflected in the stock price. He kept his "Perform," rating on the stock.

Shares slipped $1.05, or 1.3 percent, to $79.56 in premarket trading. The stock has risen 19 percent since the beginning of the year.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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