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Colgate-Palmolive Co. Message Board

  • bluecheese4u bluecheese4u Jan 31, 2008 8:13 AM Flag

    Colgate Announces Strong 4th Quarter and Year, Exceeding Expectations

    Colgate Announces Strong 4th Quarter and Year, Exceeding Expectations

    Excellent Sales and Volume Growth Worldwide

    Operating Profit Up Across All Divisions

    Board Authorizes New 30 Million Share Repurchase Program


    New York, New York, January 31, 2008… Colgate-Palmolive Company (NYSE:CL) today announced excellent worldwide sales and unit volume growth together with higher than expected earnings growth for fourth quarter 2007. Worldwide sales grew 13.5% to $3,642.2 million and unit volume grew 5.0%, as reported. Excluding divestments, worldwide sales and unit volume grew 14.0% and 5.5%, respectively. Global pricing increased 2.0% and foreign exchange added 6.5%. The very strong top-line growth was supported by a 14% increase in worldwide advertising spending.

    Fourth quarter 2007 results include $75.8 million of aftertax charges related to the 2004 Restructuring Program. The year ago quarter included restructuring charges of $65.1 million and a gain on the sale of the Company’s household bleach business in Canada of $38.2 million aftertax.

    As reported, gross profit margin increased 70 basis points to 56.1%. Excluding restructuring charges, gross profit margin increased 90 basis points to a record 57.5% despite significant increases in worldwide commodity costs.

    Operating profit as reported increased 7% versus fourth quarter 2006 to $675.6 million, 18.5% of sales. Excluding restructuring charges and the prior year gain on the sale of the Company’s household bleach business in Canada as noted above, operating profit rose 18% to $781.7 million. On the same basis, operating profit margin was 21.5% of sales, up 80 basis points versus the year ago period.


    The tax rate increased by 2.8 percentage points in the fourth quarter due to the cost of increased remittances from overseas subsidiaries and the one-time impact of statutory tax rate changes in certain overseas subsidiaries.

    Reported net income and diluted earnings per share in fourth quarter 2007 were $414.9 million and $.77, respectively. Excluding restructuring charges and the prior year gain on the sale of the Company’s household bleach business in Canada, net income in the quarter increased 15% versus fourth quarter 2006 to a record $490.7 million, and diluted earnings per share increased 17% to $.91, also a record. In fourth quarter 2006, reported net income and diluted earnings per share were $401.2 million and $.73, respectively, and net income and diluted earnings per share excluding restructuring charges and the gain on the sale of the Company’s household bleach business in Canada were $428.1 million and $.78, respectively.

    Net cash provided by operations year to date increased by 21% to $2,203.7 million after building inventories to support the business during factory closings related to the 2004 Restructuring Program. Colgate’s strong balance sheet strengthened even further during the period with key measures improving and net debt (debt less cash and marketable securities) declining versus fourth quarter 2006. End of fourth quarter 2007 working capital improved to 2.2% of sales versus 2.3% in the comparable 2006 period.

    Ian Cook, President and CEO commented, “We are delighted to have ended the year so strongly on both the top and bottom lines. The excellent results were truly across the board with every operating division increasing both sales and operating profit in the quarter.

    “Pleasingly, the 90 basis point improvement in gross profit margin worldwide and other savings programs allowed for strong levels of advertising investment behind our global brands while still generating higher than expected operating profit, net profit and earnings per share for the quarter.


    “Consistent with

    http://www.sec.gov/Archives/edgar/data/21665/000119312508016125/dex99.htm

 
CL
65.28-0.03(-0.05%)Sep 19 4:03 PMEDT

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