The Procter & Gamble Company reported second quarter fiscal year 2014 net sales of $22.3 billion, unchanged versus the prior year period, including a negative three percentage point impact from foreign exchange. Organic sales grew three percent.

Diluted net earnings per share were $1.18, a decrease of 15 percent versus a base period that included a $0.21 per share holding gain resulting from P&G’s purchase of the balance of its Baby Care and Feminine Care joint venture in Iberia. Core earnings per share were $1.21, a decrease of one percent versus the prior year. On a currency-neutral basis, core earnings per share increased eight percent for the quarter.

“P&G’s second quarter results came in as we expected,” said Chairman, President, and Chief Executive Officer A.G. Lafley. “We’re on-track to deliver our objectives of 3-4% organic sales growth and 5-7% core EPS growth for the fiscal year. We expect strong earnings growth in the second half of the fiscal year driven by solid top-line growth, moderating headwinds from foreign exchange, and productivity savings that build throughout the year.”

October – December Quarter Discussion

Net sales were unchanged versus the prior year at $22.3 billion in the October – December quarter, including a negative three percentage point impact from foreign exchange. Organic sales grew three percent. Organic sales were at or ahead of prior year levels in each reporting segment. Volume grew three percent. Pricing increased sales by one percent, and unfavorable geographic and product mix decreased sales by one percent.

Beauty segment organic sales were unchanged. Gains from market growth and innovation in Prestige, Hair Care, Deodorants, and Personal Cleansing, were offset by geographic and product mix and a decrease in Skin Care sales.

Grooming segment organic sales increased three percent as higher pricing and innovation on Blades & Razors and Appliances were partially offset by market contraction in developed regions and geographic and product mix.

Health Care segment organic sales grew five percent due to increases in Oral Care and Personal Health Care from innovation which were partially offset by a decrease in Pet Care behind the continuing impacts from the product recalls in the previous fiscal year for Natura.

Fabric Care and Home Care segment organic sales increased four percent with growth in Fabric Care and Home Care due to innovation and market expansion in developing regions. Personal Power sales decreased due to shipments in the prior year which included the impact of Superstorm Sandy.

Baby, Feminine and Family Care segment organic sales increased three percent behind product innovation and Baby Care market growth in the developing regions.

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