Colgate Announces Strong 1st Quarter Earnings - Company Expresses Comfort with 2Q and Full Year 2009 External Expectations
New York, New York, April 30, 2009... Colgate-Palmolive Company (NYSE:CL) today reported net income and diluted earnings per share in first quarter 2009 of $507.9 million and $.97, respectively. Reported net income and diluted earnings per share in first quarter 2008 were $466.5 million and $.86, respectively, which included $21.2 million of aftertax charges ($.04 per diluted share) related to the 2004 Restructuring Program. Excluding restructuring charges (which pertain only to 2008), net income and diluted earnings per share increased 4% and 8%, respectively.
Worldwide sales declined 5.5% during the first quarter to $3,502.8 million and unit volume declined 0.5%. Excluding divested businesses, worldwide sales declined 5.0% and unit volume was flat with the year ago period. Organic sales (excluding foreign exchange, acquisitions and divestments) grew 8.0%. Global pricing increased 8.0% and foreign exchange was negative 13.0%.
Gross profit margin as reported increased to 57.5% in first quarter 2009 from 56.6% in first quarter 2008. Excluding restructuring charges in 2008, gross profit margin increased 20 basis points to 57.5% in first quarter 2009 from 57.3% in first quarter 2008, reflecting the benefits of increased pricing and aggressive cost-savings programs, which more than offset the impact of higher raw and packaging material costs.
Selling, general and administrative expenses were 33.9% and 36.3% of net sales in first quarter 2009 and 2008, respectively. Excluding restructuring charges in 2008, selling, general and administrative expenses decreased to 33.9% of net sales in first quarter 2009 from 36.0% of net sales in first quarter 2008. Worldwide advertising costs declined 210 basis points as a percentage to sales brought about by lower media rates in many areas of the world and reduced levels of spending in line with competition.
As reported, operating profit was $811.4 million and $745.7 million in first quarter 2009 and 2008, respectively. Excluding restructuring charges in 2008, operating profit rose 4% to $811.4 million in first quarter 2009 from $784.1 million in first quarter 2008, increasing to 23.2% from 21.1% as a percentage to sales.
Net cash provided by operations year to date increased by a strong 21% to $690.2 million. Working capital increased slightly to 1.4% of sales versus 0.8% in the