Colgate-Palmolive Expects Earnings Per Share to Fall in 2019, CEO Says

   By Allison Prang

Colgate-Palmolive Co. (CL) expects earnings to fall in 2019 amid higher raw material prices and global economic uncertainty, Chief Executive Ian Cook said Friday.

Mr. Cook said the company expects net sales in 2019 to be flat to up in the low-single digits, organic sales to increase between 2% and 4% and for the firm's gross margin to expand. The company is also expecting earnings per share to fall in the low single digits, he said.

Colgate-Palmolive is planning to invest more in its brands and increase prices, Mr. Cook said.

The company expects adjusted earnings to fall in the mid single digits and for its adjusted gross profit margin to expand, he said.

"Our outlook reflects an increase in raw material prices, an increase in our tax rate year-over-year and the uncertainty surrounding the global economy, exchange rates and pricing," he said.

Mr. Cook said the company is expecting to invest more in Elta MD and PCA Skin, its skin-care businesses, and also to bring its elmex and meridol toothpaste brands into new markets.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

January 25, 2019 07:47 ET (12:47 GMT)

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