By Angela Chen
Colgate-Palmolive Co. posted stronger-than-expected earnings in
the fourth quarter, as higher pricing and growth in emerging
markets helped offset the impact of the stronger dollar.
Chief Executive Ian Cook noted special strength in the core
segment of toothpaste and manual toothbrushes, with market shares
remaining steady at 44.5% and 33.4%, respectively. In addition, the
company's market share for mouthwash edged up 0.1 points to
16.9%.
However, he warned the company isn't immune to foreign-exchange
issues. Procter & Gamble Co., Kimberly-Clark Corp. and other
consumer-product companies have already warned the markets of
unprecedented forex headwinds this year.
"While our long term goal of double-digit annual earnings per
share growth remains unchanged, we continue to see significant
deterioration in foreign exchange rates," said Mr. Cook. Colgate is
now planning for a year of low-single-digit per-share earnings
growth, in line with the 3% growth rate projected by analysts.
The most recent quarter saw a foreign-currency impact of 9%, the
company said. Organic sales growth, which excludes effects from
foreign exchange, acquisitions and divestments, was 6%. Organic
sales growth in emerging markets was 9.5%.
Overall, Colgate reported a profit of $628 million, or 68 cents
a share, up from $564 million, or 60 cents a share, a year earlier.
The latest period included $71 million tied to the implementation
of the company's four-year global growth and efficiency
program.
Excluding these items, per-share earnings were 76 cents,
compared with 75 cents a year earlier.
Net sales edged down 3% to $4.22 billion. Global unit volume
grew 2.5% as pricing increased 3.5%.
Analysts polled by Thomson Reuters had projected earnings of 74
cents a share and revenue of $4.22 billion.
Colgate's sales have improved in recent quarters, but costs for
its restructuring efforts have been a drag on its bottom line of
late.
With its biggest source of sales coming from oral care, Colgate
is less diversified than some of its consumer-products peers like
Procter & Gamble or Unilever PLC. Still, the company has been
relaunching its Hill's Science Diet line of pet food as well as
adding new products.
In October, it acquired Myanmar's Laser Brand Toothpaste, in one
of the biggest acquisitions by a foreign company in the Southeast
Asia nation.
Shares, which were inactive premarket, have risen 6% in the past
12 months through Wednesday's close.
Write to Angela Chen at angela.chen@dowjones.com
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