Colgate Announces Strong Second Quarter

Colgate-Palmolive Company achieved record net income and earnings per share in the second quarter driven by 5% worldwide unit volume growth. Operating margin reached an all time high of 20.2% as a percent to sales, up 150 basis points from last year. Earnings per share increased 12% to $0.47 per diluted share. Continued efficiency gains drove net income up 10% to $287.2 million, another all time record. Including the effect of the stronger dollar, global sales from continuing businesses increased 1% to $2.3 billion.

Reuben Mark, Colgate Chairman and CEO, said, “We are very pleased by the breadth and strength of our results. Every operating division achieved strong volume growth and increased operating profits both absolutely and as a percent to sales. It is especially encouraging to see dollar operating profits rise strongly even in Latin America and Europe despite currency pressures.”

Mr. Mark said the company’s ongoing savings programs combined with more recent cost reduction innovations lifted gross profit 80 basis points versus the year ago quarter, excluding the slightly dampening effect of our previously announced Chinese toothbrush acquisition and formula investment at Hill’s. Including these investments, gross profit rose 50 basis points. Year-to-date after-tax return on capital also reached a new high at 27.7% vs. 24.7% in the year ago period.

“These solid financial results, coupled with innovative new product activity and widespread market share gains, bode well for another successful year in 2001 and gives us encouragement as we look forward to 2002,” he said.