P&G Beats Forecasts and Sees Growth

In Bob McDonald's first full quarter at the helm of Procter & Gamble (PG), the world's largest consumer-goods company reported fiscal first-quarter results that were well ahead of expectations. After a spring and summer of poor results, as consumers switched from P&G's premium brands to lower-priced products, the company's price cuts and innovations showed signs of luring buyers back.

P&G, the maker of Tide and Gillette razors, on Oct. 29 reported earnings of $3.35 billion, a 1% slide from a year ago. Sales fell 6%, to $19.8 billion. But Wall Street had expected considerably weaker earnings, so company shares soared 4%, to $59.54. "The actions taken by Bob McDonald are now bearing fruit," said Sanford Bernstein analyst Ali Dibadj.