Colgate Shares Drop on Earnings Warning

Shares of Colgate-Palmolive stock dropped more than 15% after analysts said the company had warned them its earnings were being hurt by the cost of petroleum and the weakness in the European currency. While earnings are still expected to meet earlier expectations of 42-43 cents a share for the third quarter, it is only possible because of a reduction in the company’s tax rate. In a statement, Colgate-Palmolive chairman and chief executive officer said only that the company is comfortable with the consensus of analysts’ earnings per share expectations for the third quarter and that the earnings increase should be accompanied by good volume growth in the U.S. and abroad.