DOW JONES NEWSWIRES
Colgate-Palmolive Co.'s (CL) first-quarter earnings jumped 61%
as the consumer-products maker increased revenue and benefited from
the removal of a prior-year charge in Venezuela.
The world's largest toothpaste maker by revenue and market share
had reported slowing sales in its past two quarters as it faces
more competitive pressures around the world. At the same time, U.S.
consumers remain cautious about the overall strength of the economy
and increased spending only slightly last year.
Chief Executive Ian Cook said Colgate's global market shares in
toothpaste and manual toothbrushes are both at record highs this
year to date, and that the company expects gross profit margin to
remain at around the first quarter level throughout the rest of
2011. It narrowed to 58.4% from 59.2% on higher material costs and
increased promotional investments.
Colgate reported a profit of $576 million, or $1.16 a share, up
from $357 million, or 69 cents, a year earlier. The prior-year
earnings included a 52-cent charge related to the transition to
hyperinflationary accounting in Venezuela.
Revenue increased 4.5% to $3.99 billion as organic sales--which
excludes currency effects, acquisitions and divestitures--rose
1.5%.
Analysts polled by Thomson Reuters most recently forecast
earnings of $1.16 on revenue of $3.91 billion.
Volume rose 2% while pricing slipped 0.5%.
Revenue from Latin America, Colgate's biggest market by sales,
climbed 9% on higher pricing and volume gains in Venezuela,
Argentina and Central America.
In North America, sales fell 4.5% as volume slipped 1% and
prices fell 4%.
Shares of Colgate were down 1.3% in premarket trading Thursday
to $80. The stock had edged up 0.9% this year through Wednesday's
close.
-By Ian Thomson, Dow Jones Newswires; 212-416-2314;
ian.thomson@dowjones.com