04.26.06
Colgate-Palmolive Co. posted a higher first-quarter profit on Wednesday, as volume growth in every operating division helped offset restructuring costs and increased spending on advertising.
The company expects to post double-digit earnings-per-share growth this year, excluding charges for restructuring and stock compensation, despite rising energy costs.
Profit in the first quarter rose to $324.5 million (59 cents per share) including charges for restructuring and stock-based compensation, up from $300.1 million (53 cents per share) a year earlier.
Excluding those charges, Colgate earned $383.4 million (70 cents per share) up from $344.7 million (61 cents per share) a year earlier.
Excluding just the 2 cents per share charge related to stock-based compensation, the company earned 68 cents per share, topping the average analyst forecast of 66 cents per share, according to Reuters Estimates.
Sales rose nearly 5% to $2.87 billion, topping the average analyst forecast of $2.84 billion. Worldwide advertising spending rose 11% to $297.1 million, as every unit raised advertising spending as a percent to sales.
The company's gross margin excluding restructuring charges rose 110 basis points to 56.3%, which was a new record. On a reported basis, gross profit margin was 54.5%.
Colgate's shares closed at $57.35 yesterday (Tuesday).
The company launched a restructuring plan in late 2004 that includes cutting 12% of its work force and closing one-third of its factories. The company has also been raising prices on some products to help offset higher costs for raw materials such as resins.
Colgate is focused on its more profitable businesses, such as oral care and personal care. It plans to add high-end toothpaste and personal products to its line-up with a deal to buy an 84% stake in natural personal products maker Tom's of Maine, which is expected to close later this year. Colgate has also taken steps to exit other areas, such as certain laundry detergent operations.
The company expects to post double-digit earnings-per-share growth this year, excluding charges for restructuring and stock compensation, despite rising energy costs.
Profit in the first quarter rose to $324.5 million (59 cents per share) including charges for restructuring and stock-based compensation, up from $300.1 million (53 cents per share) a year earlier.
Excluding those charges, Colgate earned $383.4 million (70 cents per share) up from $344.7 million (61 cents per share) a year earlier.
Excluding just the 2 cents per share charge related to stock-based compensation, the company earned 68 cents per share, topping the average analyst forecast of 66 cents per share, according to Reuters Estimates.
Sales rose nearly 5% to $2.87 billion, topping the average analyst forecast of $2.84 billion. Worldwide advertising spending rose 11% to $297.1 million, as every unit raised advertising spending as a percent to sales.
The company's gross margin excluding restructuring charges rose 110 basis points to 56.3%, which was a new record. On a reported basis, gross profit margin was 54.5%.
Colgate's shares closed at $57.35 yesterday (Tuesday).
The company launched a restructuring plan in late 2004 that includes cutting 12% of its work force and closing one-third of its factories. The company has also been raising prices on some products to help offset higher costs for raw materials such as resins.
Colgate is focused on its more profitable businesses, such as oral care and personal care. It plans to add high-end toothpaste and personal products to its line-up with a deal to buy an 84% stake in natural personal products maker Tom's of Maine, which is expected to close later this year. Colgate has also taken steps to exit other areas, such as certain laundry detergent operations.