P&G beats Street, quells investor fears
Easing commodity prices and cost savings helped Procter & Gamble Co. beat Wall Street estimates for the third quarter, news of which drove up shares of the consumer goods manufacturer 1.2 percent to a Friday close of $69.44 per share.
While P&G earnings were down 6.9 percent, declines were mostly due to unfavorable foreign currency exchange rates. But core earnings were $1.06 per share, beating observers' estimates of 97 cents per share. Also, operating margins grew, suggesting the company's cost-cutting measures are working.
The company's performance has weakened the criticism coming from some investors, including hedge fund manager William Ackman, who has been critical of the company's management and its cost structure. Mr. Ackman's Pershing Square fund recently took a massive $1.8 billion position in the company.
Procter & Gamble shares rallied midweek, but by Friday were declining, dragging down the Dow Jones industrial average.
Procter & Gamble has a paper converting plant in Washington Twp., Wyoming County, producing paper products and baby care items under brand names such as Pampers, Bounty and Charmin.