Procter & Gamble profit falls on higher marketing expenses

Consumer products giant Procter & Gamble on Tuesday reported a lower fourth-quarter profit due primarily to higher marketing costs.

The Cincinnati-based company, which operates a plant in Iowa City, said fourth-quarter net income declined 12 percent to $2.19 billion, or 71 cents a share, from $2.47 billion, or 80 cents a share, in the final quarter of fiscal 2009. Fourth-quarter revenue increased 5 percent to $18.9 billion from $18.1 billion in the same quarter last year.

For all of fiscal 2010, Procter & Gamble posted net income of $12.7 billion, or $3.70 per share, down 5 percent from $13.4 billion, or $3.55 per share, in fiscal 2009. Revenue rose 3 percent to $78.9 billion from $76.7 billion in fiscal 2009.

Procter & Gamble said it has been spending more on innovation and marketing. The world's largest advertiser reported it bumped up ad spending by more than $1 billion in the past year to $8.6 billion.

Procter & Gamble's earnings decline was larger than Wall Street expected, which hit shares in premarket trading. They fell $2.32, or 3.7 percent, to $59.74.