Colgate-Palmolive’s third quarter profit slipped 1% due to restructuring charges. The world’s largest toothpaste maker saw quarterly net income fall to $344.1 million from $347.2 million a year ago.
Excluding charges related to a restructuring plan, as well as stock-based compensation expenses, Colgate-Palmolive reported earnings of $421.5 million. The results came despite record spending on advertising worldwide, said Reuben Mark, chief executive.
Revenue rose 8% to $3.14 billion. Analysts were looking for $3.08 billion.
“We are very pleased with the excellent top and bottom line growth, exceeding expectations and building on the strong growth momentum we saw in the first half,” Mr. Mark said.
Regional sales showed their greatest strength in Latin America, where revenue grew 15%. North American sales rose 2%, while Europe and South Pacific sales climbed 7%.
Looking ahead, Colgate-Palmolive forecast double-digit earnings per share growth for 2006 and 2007, excluding restructuring and stock-based compensation charges.
The company is executing a four-year restructuring plan it unveiled in December 2004.
For the nine months ending Sept. 30, the company reported a 3.8% decline in profit to $952.2 million in 2005. Earnings rose $9.03 billion from $8.49 billion in the same period last year.