Procter & Gamble Co. (PG) also issued a weak fourth-quarter earnings outlook.
The Cincinnati-based company's products range from Tide detergent to Crest toothpaste to Gillette razors to Dawn dish soap. It is facing a weakened European economy and slowdown in China. The world's largest consumer product maker says net income for the January-to-March quarter rose to $2.57 billion, or 88 cents a share. That compares with net income of $2.41 billion, or 82 cents a share last year.
Excluding restructuring charges and related to the devaluation of the Venezuelan currency, earnings totaled 99 cents a share. Analysts expected 96 cents, according to FactSet.
"Strong cost savings enabled us to exceed our outlook on the bottom line," CEO Bob McDonald said in a statement.
P&G is aiming to save $10 billion by 2016. Last year, P&G admitted missteps in some emerging markets -- which make up nearly 40 percent of its sales -- when it expanded in certain product areas too quickly. But it then introduced a plan to focus on its 20 biggest new products and its 10 most-profitable emerging markets in an effort to gain more market share.
Revenue rose 2 percent to $20.6 billion. That fell short of analyst expectations of $20.72 billion.
The company says it held or increased market share in categories representing more than 50 percent of its sales globally and two-thirds of its sales in the U.S.
The company expects fourth-quarter net income of 69 cents to 77 cents a share, excluding one-time items. Analysts expect 82 cents a share.
For the year, it expects net income of $3.96 to $4.04 a share. Analysts expect $4.37 a share.
Shares fell $1.30 during premarket trading to $81.24.