Procter & Gamble brings back A.G. Lafley as CEO

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Household products giant Procter & Gamble Co. is hoping its former CEO can work his magic once again.

The Cincinnati company said late Thursday that former CEO A.G. Lafley, a 33-year industry veteran, is returning its top post.

Lafley, 65, replaces CEO Bob McDonald, effective immediately, taking on both the president and chairman titles.

McDonald, who will retire June 30 after a transition period, has served as CEO since 2009.

Traders appeared to approve of the move. P&G's shares rose 54 cents to $79.24 in aftermarket trading.

The 175-year-old company's products can be found in 98 percent of American households. But it is struggling to grow. P&G last year acknowledged that it had made missteps in some emerging markets — which make up nearly 40 percent of its sales — when it expanded in some product areas too quickly.

Known for its premium products that cost more than competitors', P&G are perceived by customers to be of higher quality. But growth for the company has slowed in developed markets like North America and Europe.

In order to spur growth, P&G has been cutting costs and rolling out new products. The company is also in the middle of a belt-tightening plan aimed at saving $10 billion by 2016.