Colgate-Palmolive Expects Double-Digit 2002 EPS growth

Colgate-Palmolive Co. said today the company is comfortable with analysts’ earnings estimates for the third quarter and 2002 and that it expects to again post double-digit earnings growth again in 2002.

“We’re quite confident the external estimates will be achieved in the quarter and in the year,” chairman and chief executive Reuben Mark said during a presentation at a Prudential Bank conference. While others in the consumer products sector have stumbled in the past several quarters, the New York-based maker of Colgate toothpaste, Palmolive dish soap and other products has consistently outperformed most of the consumer products sector.

Mr. Mark said, “Our worldwide unit volume strength continues, along with improvement in gross profit margin. After-tax return on capital, which just reached a record 27%, should approach 30% next year.” Analysts expect earnings of 48 to 50 cents a share in the third quarter with a consensus of 49 cents, up from 44 cents a year ago, according to market research firm Thomson Financial/First Call. For the full year, estimates range from $1.90 to $1.94, with a consensus of $1.92, up from $1.70 a year ago.

For 2002, estimates range from $2.13 to $2.23, with a consensus of $2.17. Mr. Mark noted that worldwide unit volume strength continues and gross profit margin has improved.