Colgate’s Profit Up 4% on Worldwide Sales in 1Q

Colgate-Palmolive Co.’s posted a 4% rise in first-quarter profit as the weak dollar and new products boosted international sales enough to offset weakness in the U.S. The maker of Colgate toothpaste and Mennen deodorant reported earnings of $338.5 million, compared with $324 million a year earlier.

Sales rose 7% to $2.51 billion, largely because of the weak dollar, which raises the value of sales in other countries when they are translated from local currencies. Excluding divested businesses, volume rose 4% and sales increased 8%, Colgate said.

“Looking around the world, our market shares are good, the new product process is working well and margin gains are exceeding expectations,” chief executive Reuben Mark said in a statement.

Profit in North America, which had declined at the end of 2003, fell 8% in the first quarter, in part because of a tough comparison to the year-ago period, when the company had strong sales of Colgate Simply White tooth whitening gel.

In Europe, sales rose 19%, helped by the weak dollar, and profit rose 14%. In Latin America, sales rose 7% and profit rose 6%, even after increased marketing spending, the company said. In Asia and Africa, sales rose 12.5% and profit rose 28%, in part due to the weakening dollar.

Executives said new Colgate toothpaste forms have helped increase sales in various parts of the world. In Europe, powered toothbrushes for kids featuring Lego Bionicle also faired well. Several regions also posted robust growth with the introduction of Palmolive Aromatherapy, Palmolive Thermal and Palmolive Thermal Spa shower gels and Soupline Hearts fabric conditioner tablets. In Asia/Africa successful new products included Colgate Herbal White and Colgate Fresh Confidence Citrus Blast toothpastes. Also, executives said the new Palmolive Oxy Plus dishwashing liquid was off to a great start in the U.S.