Positive Fourth Quarter Posted at Colgate-Palmolive

Colgate-Palmolive Company reported a 20% increase in net income to $497 million in fourth quarter 2008, as compared to the prior year. According to the company, fourth quarter 2008 results include $30.5 million of aftertax charges related to the 2004 Restructuring Program. The year ago quarter included restructuring charges of $75.8 million.

Worldwide sales grew 0.5% during the fourth quarter to a record $3.7 billion. Operating profit as reported increased 13% to $761.6 million.

Ian Cook, chairman, president and chief executive officer at Colgate-Palmolive, commented on the results excluding restructuring charges. “We are delighted that our strong organic top-line momentum continued this quarter with organic sales increasing 9%. Also, our aggressive cost cutting and increasing efficiency allowed us to raise profit margins on both the operating profit and net profit lines, despite difficult economic conditions worldwide.

“A steady stream of new products across categories and at various price points is driving market share gains here in the U.S. and abroad. For the year, Colgate’s global toothpaste market share was at an all-time record high of 44.8%, led by share gains in the United States, Mexico, Brazil, Venezuela, Colombia, China, Russia, Germany and Australia. Colgate also strengthened its global leadership in manual toothbrushes with its global market share in that category exceeding a record 30% for the year.

Mr. Cook concluded, “The benefits of recently easing commodity and oil prices should begin to flow through during the first and second quarters of 2009. This, coupled with higher pricing and our ongoing aggressive savings programs, should offset the expected impact of the stronger dollar and indicates that gross profit margin for full year 2009 should be up nicely versus 2008. Overall, despite the global economic slowdown, we are comfortable with external profit expectations for the first quarter and full year 2009.”

For the full year 2008, worldwide sales as reported increased 11% to $15.3 billion.

In North America – 19% of company Sales – sales grew 1.5% to a record level in the fourth quarter, while operating profit increased 5%, says the report. In the U.S., new product launches are contributing to market share gains across categories – as seen in toothpaste, manual toothbrushes, power toothbrushes, liquid hand soap, hand dish liquid and fabric conditioners. In oral care, Colgate Total Advanced Clean and Colgate Total Advanced Whitening toothpastes, supported by an integrated marketing campaign featuring Brooke Shields and an expansive professional sampling program, helped drive market share for Colgate Total toothpaste to a record high of 16% for the year. Market share for Colgate Max Fresh toothpaste is also at a record high at 4.1% for the year. Colgate’s share of the manual toothbrush market reached a record 27.1% for the year, fueled by the success of Colgate 360°, Colgate 360° Sensitive and new Colgate 360° Deep Clean manual toothbrushes, says the company.

Successful new products contributing to growth in the U.S. in other categories include Colgate 360° Sonic Power battery toothbrush, Irish Spring Moisture Blast and Irish Spring Reviving Mint body wash, Palmolive Pure & Clear dish liquid and Softsoap brand Body Butter Coconut Scrub moisturizing body wash.

The company expects continued success with the 2009 launches of Colgate Max White and Colgate Sensitive Enamel Protect toothpastes, Palmolive Aroma Sensations hand dish liquid, Softsoap Ensembles liquid hand soap, Speed Stick Pro and Lady Speed Stick Spa deodorants and Colgate Max White manual toothbrush.

In Latin America – 27% of company sales – the sales grew 5.5% in the fourth quarter; while in Europe/South Pacific (23% of company sales), the sales declined 13%.Volume gains in Denmark, Germany,Czech Republic, Romania and Australia were more than offset by volume declines in France, Italy and Spain.Greater Asia/Africa sales (17% of the company sales) increased 1%. Volume gains in India, Russia and the rest of the CIS countries, Philippines, Vietnam, South Africa, the Gulf States/Saudi Arabia region, Morocco and Kenya more than offset volume declines in the Greater China region.