Colgate-Palmolive Co.'s (CL) fourth-quarter earnings fell 5.4%
as the consumer-products company's sales grew slower than expected
and higher costs hurt margins.
The world's largest toothpaste maker by revenue and market share
has been challenged of late by rising costs for oil, resin and
other products used to make, ship and package its products as some
cost-conscious shoppers trade down from branded products,
especially in developed markets like the U.S. and Europe. The
company raised prices and slashed costs, but hasn't been able to
fully mitigate the higher input costs and has projected a decline
in margins for the year.
Colgate-Palmolive reported a profit of $590 million, or $1.21 a
share, down from $624 million, or $1.24, a year earlier. Excluding
business realignment costs and other items, earnings rose to $1.30
from $1.24.
Revenue jumped 4.9% to $4.17 billion. Volume was up 4% while
prices increased 3%.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.29 on revenue of $4.18 billion.
Gross margin fell to 57.4% from 59.1%.
In North America, net sales rose 3.5%, as volume grew 3% and
prices increased 0.5%. Overseas, where Colgate derives most of its
revenue, sales were up 6.5% in Latin America, 5% in the
Europe/South Pacific region, and 5% in the Greater Asia/Africa
region.
Shares closed at $89.44 and were inactive premarket. The stock
has fallen 1.2% over the past three months.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com