CINCINNATI (AP) -- Procter & Gamble Co.'s fiscal third-quarter net income rose 2 percent as it cut costs to offset sluggish sales in categories like beauty and family products.
The world's largest consumer product maker's adjusted earnings topped analysts' estimates, but revenue fell short. The company cut its 2014 adjusted earnings forecast on Wednesday.
Since CEO A.G. Lafley returned to the company help in May, Procter & Gamble Co. has been focusing on its most profitable markets and products and introducing new products. It sold off most of its pet care business earlier this month for $2.9 billion.
"We're operating in a slow-growth, highly competitive environment, which places even greater importance on strong innovation and productivity improvement," Lafley said in a statement.
The Cincinnati-based company's turnaround plan also includes cutting costs to save $10 billion by fiscal 2016.
For the three months ended March 31, the maker of Tide detergent and Gillette razors earned $2.61 billion, or 90 cents per share. That compares with $2.57 billion, or 88 cents per share, last year.
Excluding restructuring charges and other items, earnings were $1.04 per share. Analysts' forecast $1.02 per share.
Revenue totaled $20.56 billion, down slightly from last year's $20.6 billion on foreign currency fluctuations. Wall Street expected $20.68 billion.
P&G now foresees full-year adjusted earnings climbing 3 percent to 5 percent. Its prior outlook was for 5 percent to 7 percent growth.
The stock fell 40 cents to $80.85 in premarket trading about two hours ahead of the market open.