Proctor & Gamble, whose CEO is being pressured by Bill Ackman an activist investor, upped its earnings forecast for 2013 after its U.S. market share was increased and it posted profit for the latest quarter that exceeded Wall Street expectations.
P&G’s net income was $4.06 billion over double what it was for the same quarter one year ago. Excluding some items, the profit for P&G, based in Cincinnati, was at $1.22 per share, which topped the estimates of $1.11.
Bob McDonald, the CEO, has reduced expenses by eliminating jobs and consolidating suppliers at a local level, while putting additional emphasis on the company’s leading brands as it attempts to win back market share.
The company’s latest results from its second quarter that ended December 31, 2012, underscore the ability of the CEO to increase market share while at the same time reducing expenses, consolidating suppliers and cutting jobs. The CEO has focused on his plan to turnaround the company, while Ackman has pushed to have him replaced after taking a stake last year in the company.
Stock at P&G was up 2% on the announcement of earnings Friday morning. Last year shares were up 1.8% compared to a gain of 13% for the S&P 500 Index.
P&G also raised as well as narrowed its forecast for annual profit to between $3.97 and $4.07 per share from the original $3.80 to $4.00. Analysts have predicted the annual earnings to be $3.98 per share.
Included in the net income for the second quarter were restructuring costs, plus a gain on the purchase of a joint venture. Net income ended at $1.69 billion or 57 cents per share last year during the same quarter.
Kimberly Clark, which makes Huggies Diapers and Kleenex, also reported profit for the fourth quarter that was higher than analysts’ estimates.