The Procter & Gamble Company (P&G) saw a 8% drop in net sales to $18.4 billion for the third quarter driven by unfavorable foreign exchange and lower shipment volume, says the company in its latest financial report.

Beauty net sales declined 9% during the quarter to $4.3 billion. Organic sales were in line with the previous year period. Volume declined 5% primarily due to market softness in prestige fragrances. Retail hair care volume was down low single digits as a double-digit decline in CEEMEA was partially offset by growth in most of the other regions.

Volume in professional hair care decreased double digits primarily due to market softness. Skin care volume declined high single digits mainly due to trade inventory reductions and the divestiture of Noxzema. Net earnings declined 14% during the quarter to $504 million behind lower net sales and higher commodity costs, including foreign exchange impacts.

For the 2009 fiscal year, the company expects organic sales to grow by 2-3%, while net sales are forecasted to be down 2-4%, driven primarily by unfavorable foreign exchange.