P&G profit beats on cost cuts, demand for home care goods

Procter & Gamble Co (PG.N), the maker of Tide detergent and Pampers diapers, reported a better-than-expected quarterly profit, helped by cost-cutting and strong demand for its baby, feminine and home care products.

P&G's shares were up 2.2 percent at $86.00 in premarket trading on Tuesday.

The company has been selling off unprofitable brands and focusing on core brands such as Tide, Pampers and Gillette to revive sluggish sales. P&G sold 41 of its brands, including Clairol and Wella, to Coty Inc (COTY.N) in a $12.5 billion deal earlier this month.

P&G is also reducing costs through a multi-year plan to save up to $10 billion.

Cincinnati, Ohio-based P&G said net income attributable to the company rose to $2.71 billion, or 96 cents per share, in the first quarter ended Sept. 30, from $2.60 billion, or 91 cents per share, a year earlier.

Excluding items, P&G earned $1.03 per share from continuing operations, slightly beating the average analyst estimate of 98 cents, according to Thomson Reuters I/B/E/S.

Net sales remained largely flat at $16.52 billion, but beat analysts' average estimate of $16.49 billion.

P&G's quarterly sales have been mostly falling for more than three years, as the company has been cutting its brand portfolio.