The Procter & Gamble Company (NYSE: PG) announced second quarter diluted net earnings from continuing operations of 1.11 dollars per share, an increase of 10 percent. Core EPS was up three percent to 1.13 dollars per share, 0.02 dollars per share above the top end of the Company's guidance range. Net sales increased two percent to 21.3 billion dollars driven by six percent volume growth which was partially offset by unfavorable foreign exchange and mix impacts. Organic sales grew three percent.

The Company continued to deliver broad-based volume and market share growth. Volume was up six percent behind growth in all major geographic regions, 16 of 17 top countries, five of six business segments and 19 of 23 billion-dollar brands. Market share was up in all geographic regions and the majority of key countries and brands. Businesses representing about 60 percent of net sales maintained or grew market share.

"We are expanding market shares by touching and improving the lives of more consumers in more parts of the world, more completely through our innovation and expansion plans," said Chairman of the Board, President and Chief Executive Officer Bob McDonald. "This is driving strong volume and sales growth ahead of market levels. Core EPS is ahead of year-ago levels, and we are on track to deliver seven to nine percent growth for the year."

Executive Summary

Net sales increased two percent and organic sales grew three percent for the quarter.

Diluted net earnings per share from continuing operations increased 10 percent to 1.11 dollars.

Core EPS was 1.13 dollars, an increase of three percent. These results were driven by benefits from organic sales growth, cost savings, a decline in the effective tax rate and a reduction in shares outstanding. These benefits were partially offset by negative impacts from higher input costs and higher marketing and portfolio expansion investments.

Market share was up in all geographic regions and in-line or higher in 12 of the top 17 countries and for 16 of 23 billion-dollar brands.