Procter and Gamble has reported an increase in quarterly profit by 53 percent. The company also clarified that the gain had been achieved due to the sale of its Folgers coffee business. At the same time the company has also declared that the sales are dropping in the economic meltdown.

Late morning trading showed a drop in the share prices of the company by 4 percent.

"If consumer confidence around the world continues to drop, we would expect consumption in more discretionary categories to be further impacted," Chief Financial Officer Jon Moeller said in a conference call.

P&G had apprehended a drop in the sales as retailers were keeping inventories tight due to less expenditure by consumers and the layoffs.

Alan G. Lafley, the chief executive, said Procter & Gamble revealed that the company was trying to increase its market share by offering various schemes to consumers like offering more coupons.