Financial Review 21 The Procter & Gamble Company and Subsidiaries Baby care volume increased 4% behind Pampers growth in  North America and Western Europe driven by the Baby  Stages of Development product launch. Net sales declined  1% as foreign exchange and targeted pricing adjustments  more than offset volume growth. $4.35 billion, up 11%. Excluding a 3% unfavorable ex- change impact, net sales grew 14%. Net earnings were  $390 million, a 16% increase over fiscal 2000. Feminine care volume declined 3%, stabilizing in the second  half, and net sales declined 5%. Nevertheless, net earnings  improved mainly due to cost efficiencies. Fabric and home care delivered strong earnings driven by an  excellent program of cost reduction and sharpened consum- er value. Unit volume grew 3%, with growth across every  geographic region. Net sales for the year were flat at $11.62 billion. Excluding a 1% unfavorable foreign exchange impact,  net sales increased 1%, as volume growth was partially offset  by pricing investments to improve in-store presence and the  consumer value equation, primarily in Western Europe. In 2001, baby, feminine and family care segment unit volume  grew 2%, driven by family care and baby care. Net sales  were $11.99 billion, compared to $12.04 billion in 2000. Excluding a 4% negative impact of exchange rates, net sales  increased 4%. Net earnings decreased 2%, to $1.05 billion,  despite progress in family care and feminine care. Net earnings were $1.83 billion, up 11% behind lower material prices, product reformulations and manufacturing  plant efficiencies. North America delivered exceptional earn- ings progress, reflecting disciplined cost management and  increased marketing support efficiencies. This earnings prog- ress further expands the segment’s strong net earnings margin – to well above the Company average. In 2001, unit volume decreased 2% due to heavy competitive activity, primarily in Western Europe. Net sales  were $11.66 billion, down 4% versus a strong 2000 base  which included new brand introductions. Excluding a 3%  unfavorable foreign exchange impact, net sales decreased  1%. Net earnings increased 13% to $1.64 billion. Beauty care delivered strong results behind the Clairol acquisition, completed in the second quarter. Throughout the  fiscal year, beauty care’s quarterly growth rates for unit volume and net sales increased sequentially – delivering unit volume growth of 19% and net sales of $8.08 billion, up  11%. Excluding a 2% negative foreign exchange impact, net  sales grew 13%. Excluding the impacts of the Clairol acquisi- tion, fiscal year unit volume grew 3%, primarily behind  strength in the base hair care business and solid growth in  fine fragrances and cosmetics. Net earnings were $1.18 bil- lion, up 22%, driven by marketing support efficiencies behind  growing businesses and a continued focus on cost reductions. Baby, Feminine and Family Care Baby, feminine and family care delivered strong earnings  progress driven by volume growth and extensive cost reduction. Family care and baby care drove a 3% increase in  unit volume. Net sales for the year were down 1% to $11.88 billion. Excluding a 2% negative impact of exchange rates,  net sales increased 1%, as commodity driven price declines  and pricing adjustments on Luvs and Western European diapers partially offset volume growth. The Clairol integration went according to plan during the  year with North America, the largest region, being complet- ed in May. The Clairol acquisition provides a strong presence  in the high-margin colorants business and rounds out the  Company’s hair care offerings. In 2001, beauty care unit volume was down 1%. Excluding  the impact of divestitures, volume was flat. Net sales were  $7.26 billion, down 2%, versus $7.39 billion in 2000. Exclud- ing a 4% impact of unfavorable exchange rates, primarily in  Western Europe and Asia, net sales grew 2%. Net earnings  were $967 million, an 8% improvement behind the success- ful expansion of high-performance, premium-priced products. Net earnings were $1.17 billion, up 11% behind an ongoing  program of product and overhead cost reductions, including  benefits from restructuring activities that have streamlined  manufacturing operations. Family care volume grew 7% behind strength in the North  America Bounty and Charmin businesses. Net sales increased  1%, as commodity pricing actions largely offset volume  growth. Food and beverage delivered solid earnings growth despite  top-line challenges. Unit volume declined 6%, including a 4%  Food and Beverage Beauty Care Fabric and Home Care