Colgate Announces Strong Second Quarter

Colgate-Palmolive Company announced excellent worldwide sales and unit volume growth together with double-digit earnings growth for second quarter 2007. Worldwide sales grew 13% and unit volume grew 8%, as reported. Excluding divestments, worldwide sales and unit volume grew 13.5% and 8.5%, respectively. Global pricing increased 0.5%, and foreign exchange added 4.5%. The very strong top-line growth was supported by a 22% increase in worldwide advertising spending to an all-time record level.

Second quarter 2007 results include $41.7 million of aftertax charges related to the 2004 Restructuring Program. In the year ago quarter, restructuring charges were $115.9 million aftertax.

As reported, gross profit margin increased 180 basis points to 56%. Excluding restructuring charges, gross profit margin increased 100 basis points to a record 57.1%.

Operating profit as reported increased 43% versus second quarter 2006. Excluding restructuring charges, operating profit rose 13% to $713 million. On the same basis, operating profit margin was 20.9% of sales, even with the year ago period.

Reported net income and diluted earnings per share in second quarter 2007 were $415.8 million and $.76, respectively. Excluding restructuring charges, net income in the quarter increased 15% versus second quarter 2006 to a record $457.5 million, and diluted earnings per share increased 17% to $.84, also a record. In second quarter 2006, reported net income and diluted earnings per share were $283.6 million and $.51, respectively, and net income and diluted earnings per share excluding restructuring charges were $399.5 million and $.72, respectively.

Net cash provided by operations year to date increased by 29% to $899 million after building selected inventories to support the business during factory closings related to the 2004 Restructuring Program. End of second quarter 2007 working capital improved to 3.3% of sales versus 3.9% in the comparable 2006 period.