Cleaning Up at Colgate

Colgate-Palmolive Company reported record net income earnings in third quarter 2009 of $590 million—an 11% increase, according to the company.

Worldwide sales as reported were $3.9 billion and unit volume as reported increased 1.5%. Operating profit rose 11% to $926 million.

Ian Cook—chairman, president and chief executive officer of the company—noted, “Colgate’s global toothpaste leadership strengthened to 45.1% during the quarter with market share gains in key countries around the world including the United States, Mexico, Brazil, China, India and Russia. Colgate also strengthened its global leadership in manual toothbrushes, with its global market share in that category reaching a record 30.8% year to date.”

Mr. Cook continued, “Looking ahead, the excellent gross margin should continue in the balance of the year driven by easing raw and packaging material costs and continued benefit from both price increases already implemented and our ongoing aggressive savings programs. We expect gross profit margin should be at around the same level in the fourth quarter as it was this quarter.

“Given the continued gross margin strength and our top-line momentum, we are comfortable with external profit expectations for both the fourth quarter and the year. While our 2010 budget process is still in its initial stages, we anticipate another year of double-digit earnings per share growth in 2010.”

North America sales grew 3% in the third quarter. In the U.S., new product launches are contributing to market share gains across categories. Market share gains year to date were seen in toothpaste, manual toothbrushes, body washes, hand dish liquid, liquid cleaners, liquid hand soaps and fabric conditioners. Colgate Total Enamel Strength, Colgate Sensitive Enamel Protect, Colgate Max Fresh with Mouthwash Beads and Colgate Max White with Mini Bright Strips toothpastes contributed to the share gains.

Successful new products contributing to growth in the U.S. in other categories include Softsoap Nutri Serums, Softsoap Body Butter Apricot Scrub, Irish Spring Hair and Body and Cool Relief body washes and Ajax Lime with Bleach Alternative dish liquid.

Looking ahead, the innovation pipeline in the U.S. is very robust with an array of exciting introductions across categories planned for launch in early 2010 including new Wisp Plus Whitening mini-brush, according to the company.