Organic sales, excluding the impact of acquisitions, divestiture or foreign exchange grew 4% on higher volumes and pricing. This broad-based growth was achieved through all six business segments and marketshare was inline or higher in businesses representing 60% of global sales.
Baby Care and Family Care net sales increased 12% to $4.1 billion on volume growth of 2%. Organic sales grew 7% and pricing increased net sales by 4%. Baby Care volume was up in the high single digits behind market size growth and distribution expansion in developing regions. These positive developments were partially offset by diaper market softness in North America and Western Europe. Family Care volume decreased mid-single digits primarily due to the impact of the forward buy in the previous quarter ahead of the price increases in North America. Net earnings increased 5% to $494 million as sales growth was partially offset by lower operating margins. Operating margin contracted mainly due to a lower gross margins, driven by higher commodity costs, partially offset by price increases and manufacturing cost savings.