Hobbled by higher costs, P&G's net income falls

CINCINNATI - Procter & Gamble Co. (PG) says its net income fell 49 percent in the fiscal second quarter, hobbled by higher materials costs and a writedown in the value of some of its businesses. P&G also lowered its earnings predictions for the year.

Net income fell to $1.69 billion from $3.33 billion. Adjusted earnings per share of $1.10 beat analysts' estimates of $1.07. Including one-time charges, such as the company's writedown of the value of two business units, net income was 57 cents per share.

Revenue grew 4 percent to $22.1 billion, helped by higher prices. That was roughly in line with the expectations of analysts polled by FactSet.

But P&G cautioned that sales volume slowed in the U.S., even as it grew in developing countries.

P&G is based in Cincinnati.