Consumer products giant Procter & Gamble continues to face challenges in the global market as it works to regain its footing. Bobbi Rebell reports.
Procter & Gamble sales continue to slide. The global consumer products giant reporting a decline for the seventh quarter in a row. But taking out currency moves, acquisitions and divestments, sales rose by one percent, and profit was up from a year earlier. The maker of Tide and Gillette has lost market share in key markets including China and has been working to regain its footing. Emerging markets remain a challenge says Morningstar's Erin Lash: (SOUNDBITE) ERIN LASH, EQUITY ANALYST, MORNINGSTAR, (ENGLISH) SAYING: "Competitive intensity has increased particularly from local players that really understand the local tastes, and preferences, as well as the routes to market, and we think that is another challenge, and another layer to the competitive landscape that is likely to persist longer term. " Shares of P&G fell on the news. P&G has been shedding brands in its product portfolio to focus on faster-growing brands like Pampers diapers and Pantene shampoo. While it has raised prices, analysts are concerned that that could hurt sales volumes in the long run. The company also warned core earnings for the current quarter would be "significantly lower" than a year earlier, blaming higher advertising costs, a higher tax rate and the strong dollar.