44PS Cred Ag Co 26

RNS Number:3272H
Colgate-Palmolive Co
23 July 2001


FOR IMMEDIATE RELEASE...


                   Colgate Announces Strong Second Quarter

                      Record Earnings and Profitability

                    EPS up 12% on 5% Global Volume Growth


NEW YORK, NEW YORK, July 23, 2001... Colgate-Palmolive Company (NYSE:CL)
achieved record net income and earnings per share in the second quarter driven
by 5% worldwide unit volume growth. Operating margin reached an all time high
of 20.2% as a percent to sales, up 150 basis points from last year. Earnings
per share increased 12% to $0.47 per diluted share versus $0.42 per diluted
share in the second quarter of 2000. Continued efficiency gains drove net
income up 10% to $287.2 million, another all time record. Excluding exchange,
continuing sales were up 5%, operating profits were up over 15%, and E.P.S.
was up over 20%. Including the effect of the stronger dollar, global sales
from continuing businesses increased 1% to $2.3 billion.

Reuben Mark, Colgate Chairman and CEO, said: "We are very pleased by the
breadth and strength of our results. Every operating division achieved strong
volume growth and increased operating profits both absolutely and as a percent
to sales. It is especially encouraging to see dollar operating profits rise
strongly even in Latin America and Europe despite currency pressures.

"Market shares are strong in the United States and abroad, supported by a
global increase in media spending both absolutely and as a percent to sales.

"Our ongoing savings programs combined with more recent cost reduction
innovations lifted gross profit 80 basis points versus the year ago quarter,
excluding the slightly dampening effect of our previously announced Chinese
toothbrush acquisition and formula investment at Hill's. Including these
investments, gross profit rose 50 basis points. Year-to-date after-tax return
on capital also reached a new high at 27.7% vs. 24.7% in the year ago period.

"These solid financial results, coupled with innovative new product activity
and widespread market share gains, bode well for another successful year in
2001 and gives us encouragement as we look forward to 2002."

At 11:00 a.m. EDT today, Colgate will host a conference call to further
elaborate on second quarter results and to discuss the Company's expectations
for the balance of 2001. To access this call as a webcast, please go to
Colgate's web site on the Internet at www.colgate-palmolive.com.

Colgate-North America (25% of Company Sales)

Unit volume rose 4% and sales increased 3% in the period. This is on top of
extremely strong sales and volume growth in the second quarter of 2000. This
division remains on track to achieve its seventh consecutive year of strong,
profitable growth. Operating profits rose 7% in the quarter.

Colgate U.S. continued to outpace market growth in its major product
categories in the quarter. Retail consumption of Colgate brands in the U.S.
reached an all time high for the period. Impressive share gains were achieved
broadly across major categories including toothpaste, deodorants, dishwashing
liquid, soap, all purpose cleaners and fabric softeners. New Colgate Total
Plus Whitening toothpaste and Colgate 2in1 liquid toothpaste and mouthwash
helped to strengthen Colgate's US leadership position in the toothpaste market
with market share for the category at 34.1% year to date, up three full share
points from the year ago period. In Personal Care, Softsoap Fruit Essentials
bodywash and liquid hand soap added incremental share, as did the recently
launched Lady Speed Stick Invisible Dry with Aloe deodorant.

Aggressive new product activity is continuing in 2001. Reaching store shelves
now are new Softsoap Vitamins with Vitamin E bodywash and liquid hand soap and
the new Speed Stick Power of Nature line of deodorants with fragrances
inspired by the forces of nature. Colgate has already announced 15 new U.S.
introductions this year including new Colgate 2in1 Icy Blast Whitening
toothpaste and mouthwash as well as the new Colgate Navigator cleaning tip
flexible head toothbrush.

Colgate-Latin America (26% of Company Sales)

Both unit volume and sales in local currency grew 4% in Latin America,
excluding divested businesses. In dollar terms continuing sales were down 1%
reflecting currency negatives. Regionalization, SAP, cost savings programs and
the continued focus on higher margin products helped to drive dollar operating
profits up 14% versus the year ago quarter. Operating profit margin reached a
record high of 26.7%, up 400 basis points versus the year ago quarter. Latin
American operating profits for the full year are expected to show a solid
increase.

Colgate achieved healthy volume increases in Mexico, Argentina, Venezuela,
Central America, Ecuador and Chile. Volume in Brazil met expectations and is
up close to 10% on a year-to-date basis. Colgate Fresh Confidence, Colgate
Triple Action and Colgate Herbal toothpastes all contributed to market share
gains in toothpaste throughout the region. Importantly, centralized production
of Colgate Herbal toothpaste in Brazil is efficiently supplying this
innovative new product globally. Also driving Oral Care growth is the Colgate
Navigator toothbrush and the new Colgate Replace, Colgate Premier Ultra and
Colgate Plus for kids toothbrushes. Standouts in Personal Care include Lady
Speed Stick cream deodorant and Protex cream soap. Ajax Antibacterial cleaner
and Ajax Fiesta de Flores Antibacterial Apple, a new sensorial antibacterial
cleaner, each contributed to growth in Household Surface Care.

Colgate-Europe (20% of Company Sales)

European unit volume and local currency sales both rose 6%, as successful new
products drove top-line increases in most countries. France, Germany, the
United Kingdom, Italy, Greece, Holland, Central Europe and Russia all
delivered strong volume growth. In dollar terms, sales decreased 1% reflecting
the weak Euro. Operating profits rose significantly in local currencies and
were up 5% in dollars.

The battery-powered Colgate Actibrush and the new Colgate Actibrush Bzzz for
kids have greatly strengthened Colgate's toothbrush leadership in Europe. For
example, Colgate's share of the French manual and battery toothbrush market
has more than doubled year to date. Other strong pan-regional new products
driving growth include Colgate Herbal toothpaste, now in 13 European
countries, Colgate Fresh Confidence toothpaste, Palmolive Vitamins with
Vitamin E shower gel and liquid hand soap and Palmolive Spring Sensations
dishwashing liquid.

Excellent volume growth in Central Europe and Russia was fueled by the success
of Palmolive Naturals translucent soap, Colgate Triple Action toothpaste and
the recent launch of Lady Speed Stick Invisible Dry and Mennen Speed Stick
Ultimate deodorants.

Colgate-Asia/Africa (17% of Company Sales)

Unit volume and local currency sales both rose 7% in Asia/Africa. Excellent
volume growth was achieved in China, Malaysia, Thailand, Hong Kong, New
Zealand and South Africa. Dollar sales decreased 2% due to currency
translation while dollar operating profits rose 7%. The increase in operating
profit in local currency was substantially stronger.

Successful new products spurring growth in Oral Care throughout the region
include Colgate Fresh Confidence, Colgate Herbal and Colgate Triple Action
toothpastes. In China for example, Colgate's market leadership in toothpaste
continues with its national market share, as measured by A.C. Nielsen, now at
almost 27%. Colgate's market share in China has risen sequentially in each of
the last 19 quarters. South Pacific performance was boosted by outstanding
results in Australia, where the success of new Colgate 2in1 liquid toothpaste
and mouthwash has lifted Colgate's toothpaste market share to a record 66.5%.

Elsewhere in the region, Palmolive Naturals conditioner, Protex talcum powder
and the Colgate Actibrush and Colgate Navigator toothbrushes all contributed
to the strong volume growth achieved in the quarter.

Hill's Pet Nutrition (12% of Company Sales)

Innovative new products and veterinary endorsements are driving growth at
Hill's, which had excellent results both domestically and internationally.
Sales and unit volume each rose 5% against a good year ago performance.
Operating profits increased significantly, up 29% versus the second quarter of
2000 benefiting from Hills' continued focus on cost savings programs and
manufacturing efficiencies.

Hill's-U.S. increased consumer takeaway of Science Diet in the specialty
retail channel, where its growth is outpacing category growth. Consumption
building programs targeting new pet owners through veterinarians, shelters and
breeders contributed to market share gains, as did the recently introduced
Science Diet Sensitive Skin and Science Diet Sensitive Stomach special needs
products. The new technologically advanced Prescription Diet z/d formula,
which treats and alleviates food related allergies in cats and dogs, helped to
increase sales of Prescription Diet in the veterinary channel.

Hill's International growth was strong across Europe, Japan and the South
Pacific. New products, including Science Diet Sensitive Skin and Science Diet
Sensitive Stomach, helped drive growth as did expansion of the Perfect Shop/
Perfect Clinic merchandising programs.

                                    * * *

About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer
products company, tightly focused on Oral Care, Personal Care, Household
Surface Care, Fabric Care and Pet Nutrition. Colgate sells its products in
over 200 countries and territories around the world under such internationally
recognized brand names as Colgate, Palmolive, Mennen, Softsoap, Irish Spring,
Protex, Sorriso, Kolynos, Ajax, Axion, Soupline, Suavitel and Fab, as well as
Hill's Science Diet and Hill's Prescription Diet pet foods. For more
information about Colgate's global business, visit the Company's web site on
the Internet at www.colgate-palmolive.com.

This press release (other than historical information) contains
forward-looking statements. Actual events or results may differ materially
from those statements. Investors should consult the Company's filings with the
Securities and Exchange Commission (including the Company's Form 8-K dated
November 13, 1998) for information about factors that could cause such
differences. Copies of these filings may be obtained upon request from the
Company's Investor Relations Department.


                               (Table Attached)


             Colgate-Palmolive Company Summary of Consolidated Results

             Three Months and Six Months Ended June 30, 2001 and 2000
               (In Millions Except Per Share Amounts) (Unaudited)
        
                           Second Quarter             First Half
                           2001         2000         2001       2000

Net Sales              $2,329.6      $2,336.7    $4,622.2   $4,578.5

Cost of Sales           1,051.0       1,065.8     2,083.8     2,086.4

Gross Profit            1,278.6       1,270.9     2,538.4     2,492.1

Gross Profit Margin        54.9%         54.4%       54.9%       54.4%

Selling, General and
Administrative Expenses   809.0         832.8     1,627.3     1,649.5

Earnings Before Interest
and Taxes                 469.6         438.1       911.1       842.6

Operating Profit Margin    20.2%         18.7%       19.7%       18.4%

Net Interest Expense       42.9          44.2        86.5        85.3

Income Before Income
Taxes                     426.7         393.9       824.6       757.3

Provision for
Income Taxes              139.5         132.0       269.5       255.5

Tax Rate                   32.7%         33.5%       32.7%       33.7%

Net Income                287.2         261.9       555.1       501.8

Net Earnings per Common Share:
     -   Basic             $.50          $.45        $.97        $.85
     -   Diluted           $.47          $.42        $.91        $.80

Average Common Shares Outstanding:
(in millions)
     -   Basic            560.6         576.3       562.6       577.2
     -   Diluted          610.7         629.3       613.1       630.8


The full text of Colgate Releases is available:

Internet Address: http://www.colgate-palmolive.com

Shareholder Direct: 1-800-850-2654

E-mail: Investor_Relations@colpal.com

Cred Ag Co 26 (LSE:44PS)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024

Cred Ag Co 26 (LSE:44PS)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024