P&G's Q3 profit drops nearly 4 pc

CINCINNATI: Procter & Gamble Co says its profit fell nearly 4 per cent in the fiscal third quarter as households around the globe cut spending in the recession.

The world's largest consumer products maker said Thursday it earned $2.61 billion, or 84 cents per share, compared to $2.71 billion, or 82 cents per share, a year ago.

Earnings per share reflected fewer shares outstanding after J M Smucker Co took over P&G's Folgers coffee business in a $2.95 billion stock deal last year.

Revenue dropped 8 per cent, to $18.42 billion, also hurt by the stronger US dollar. Analysts expected earnings of 80 cents per share on revenue of $18.9 billion.

P&G has been promoting its well-known brands such as Tide detergent, Pampers diapers and Gillette shavers by emphasizing value as well as cutting costs.