3rd Quarter & 9 Mths Results

RNS Number:8121L
Colgate-Palmolive Co
18 October 2001


To:      London Stock Exchange

From:     Kathya Mingacci 212-310-3312

-------------------------------------------------------

Analyst Contact:
Bina Thompson 212-310-3072

Press Contact:
Hope Borkenstein 212-310-2291

FOR IMMEDIATE RELEASE...


                    Colgate Announces Strong Third Quarter
   Gross Profit, Operating Profit and Net Profit Margins Reach Record Highs
                    EPS up 11% on 5.5% Unit Volume Growth


NEW YORK, NEW YORK, October 18, 2001... Colgate-Palmolive Company (NYSE:CL)
reported its 10th consecutive quarter of double digit EPS growth and a
continuation of strong worldwide unit volume momentum. Global unit volume grew
5.5% in the quarter, with every operating division contributing strong volume
gains. Net income increased 8% to $296.2 million, another record both
absolutely and as a percent to sales. Earnings per share increased 11% to
$0.49 per diluted share versus $0.44 per diluted share in the third quarter of
2000. Dollar operating profits also reached an all time high, up 8% versus the
year ago quarter. Continuing sales were up 2.0% versus the year ago period to
$2.4 billion, a third quarter record. Excluding exchange, worldwide sales
increased 5%. Gross profit margin improved to an all time record 55.2%,
exceeding the Company's 2002 year-end gross margin goal more than one year
early.

Reuben Mark, Colgate Chairman and CEO, said: "We are pleased that ongoing
market share gains around the world contributed to a continuation of our very
robust top-line volume growth.

"Worldwide profitability continues to increase, as it has each year for many
years. Operating margin and net margin reached new records at 19.9% and 12.4%
to sales.

"Cash generation remains strong and after-tax return on capital, which we
consider a vital measurement, reached a new all time record of 28.7% for the
first nine months. After-tax return on capital was up 300 basis points versus
the same period last year and we expect this ratio to exceed 30% in 2002."

For the first nine months of 2001, diluted earnings per share were $1.40 vs.
$1.24 in 2000, up 13%. Colgate achieved 5.5% worldwide unit volume growth and
continuing sales rose 2.0%. Net income increased 10% to $851.3 million.
Excluding the effect of the stronger dollar, continuing sales grew 6%.

Mr. Mark said further: "Colgate's business fundamentals are very healthy. All
indications are that we will finish 2001 in excellent fashion and we plan for
another strong volume and earnings year in 2002 despite global economic
conditions."

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

The following are comments about third quarter divisional performance:

Colgate-North America (26% of Company Sales)

Positive growth momentum continued in North America with divisional sales
reaching an all time high. Unit volume and sales increased 4.5% and 3.5%,
respectively, against a very strong performance in the third quarter of 2000.
Operating profits rose 7%.

In the U.S., consumer takeaway of Colgate brands continued to exceed category
growth with retail consumption of Colgate's products reaching a record high
during the quarter. Healthy national market share gains were achieved broadly
across major categories including toothpaste, deodorants, body wash, liquid
soaps, fabric softeners, all purpose cleaners and automatic dishwasher
detergents. Impressive gains in Oral Care were generated by Colgate Total plus
Whitening toothpaste, Colgate 2in1 liquid toothpaste and mouthwash, Colgate
Actibrush battery powered toothbrush, and Colgate Wave and Colgate Navigator
manual toothbrushes. Colgate's leadership of the toothpaste market in the U.S.
was strengthened to a national Nielsen market share of 34.3% year to date, up
nearly 3 full share points versus the year ago period. In Personal Care,
Softsoap Fruit Essentials and new Softsoap Vitamins with Vitamin E shower gels
and liquid hand soaps both continue to contribute incremental share. Standouts
in other core categories include Lady Speed Stick Invisible Dry deodorant and
Palmolive Spring Blossom scent automatic dish detergent gel.

Colgate U.S. has introduced a record setting 20 new products in 2001 including
the new Colgate Motion battery powered toothbrush, Colgate Fresh Confidence
toothpaste and a line of children's toothbrushes featuring characters from
Disney/Pixar's Monsters, Inc. An equally full schedule of new product launches
is expected for the year 2002 as well.

Colgate-Latin America (26% of Company Sales)

Colgate-Latin America achieved 7.5% unit volume growth in continuing
businesses in the third quarter and dollar sales increased 2.5%. Excluding
foreign exchange, continuing sales rose 8%. Mexico, Brazil, Colombia,
Venezuela, Central America and Ecuador all delivered excellent volume gains.
Dollar operating profits were up 15% versus the third quarter of 2000. The
larger business base, cost savings programs, SAP implementation and
regionalization each contributed to higher profitability in Latin America.

Market shares are very strong throughout the region and new products are
performing well. For example, toothpaste value market share in Mexico reached
an all time high during the quarter at 84%, as measured by A.C. Nielsen.
Successful new products contributing to gains in Oral Care include Colgate
Herbal and Colgate Triple Action toothpastes as well as new Sorriso Fresh Red
Gel toothpaste in Brazil. Top performers in toothbrushes are Colgate
Navigator, Colgate Replace and Colgate Premier Ultra. Protex cream, Lady Speed
Stick Dry Cream and Palmolive Kids bar soap are driving growth in Personal
Care. Standouts in other core categories include new Fabuloso Paraiso Tropical
liquid cleaner and Suavitel Apple Blossom scent fabric softener.

Colgate-Europe (20% of Company Sales)

European unit volume grew 4.0% and dollar sales increased slightly as
innovative new products spurred growth across all categories. Excluding
exchange, sales would have increased 4%. The United Kingdom, Italy, Spain,
Greece, Denmark, Switzerland, Austria, Russia and Slovenia all achieved
healthy volume gains during the quarter. Operating profit was up absolutely
and as a percent to sales, both in local currency and in dollars. Excluding
the effect of foreign exchange operating profits increased over 9%.

In Oral Care, new Colgate Total Plus Whitening and Colgate Herbal toothpastes
added incremental share throughout the region. Notably, Colgate Dental Gum
available in sparkling mint, peppermint and menthol is reaching store shelves
now in the United Kingdom, a lead global market for this exciting new product.
Recent multi-country introductions driving growth in Personal Care include
Palmolive Vitamins with Vitamin E liquid hand soap and shower gel and
Palmolive Aroma Therapy shower gel and bath foam. Now launched in eleven
Western European countries, Ajax Antibacterial All Purpose Cleaner wipes and
Ajax Glass wipes are boosting shares in Household Surface Care.

Fueling strong volume growth and market share gains throughout Central Europe
and Russia are Colgate Herbal plus Whitening toothpaste, Colgate Navigator 
toothbrush and Palmolive Vitamins with Vitamin E liquid soap and shower gel.

Colgate-Asia/Africa (16% of Company Sales)

New products and increased promotional activity helped produce 4.0% unit
volume growth in Asia/Africa. This regional growth consists of a 5.5% volume
increase in Asia/South Pacific, partially offset by an expected 3% volume
decline in the Middle East/Africa area. Excellent volume gains were achieved
in China as well as in Malaysia, Australia, Fiji and South Africa. Reported
sales declined 3.5% due to currency translation. Record levels of planned
advertising spending behind new product initiatives combined with foreign
exchange negatives resulted in a 14% decline in dollar operating profits for
the quarter versus the year ago period.

Colgate continues to expand its Oral Care leadership throughout Asia driven by
the success of Colgate Herbal and Colgate Fresh Confidence toothpastes and
Colgate Premier Ultra, Colgate Navigator and Colgate Twister toothbrushes. In
China for example, Colgate's national toothpaste share has risen for 20
consecutive quarters and is now at 28.1%, as measured by A.C. Nielsen. In
Australia, record shares for Colgate Total toothpaste contributed to market
share gains in the toothpaste category.

New entries driving growth in other core categories are Axion Spring Fresh
dishwashing liquid, Protex talcum powder, Softlan fabric softener and the
recently launched Palmolive Fruit Essentials line of bar soap, liquid hand
soap and shower gels.

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

The world leader in specialty pet food, Hill's had an excellent quarter in
both its domestic and international businesses. New products, veterinary
endorsements and enriched marketing programs drove unit volume up a strong
8.0%. Sales rose 9.0% and operating profits increased 12% reflecting the
larger revenue base and cost savings initiatives.

Hill's growth has been brought about by a steady stream of innovative new
products, effective in-store displays and heavy advertising support. These
efforts have strengthened Hill's category leadership and increased consumption
of Science Diet in the U.S. specialty retail channel. Hill's robust growth in
this channel continues to outpace category growth. Recent introductions
contributing to share and volume gains are Science Diet Oral Care for the
maintenance of healthy gums and teeth in cats and dogs, Science Diet Canine
Adult Lite Small Bites targeted towards smaller dogs and Prescription Diet z/d
anti-allergy formula.

Internationally, Hill's achieved strong volume growth across all regions led
by double-digit gains in Spain, Germany, Australia, Mexico, Brazil, Argentina
and South Africa. Successful new products include Science Diet Canine and
Feline Sensitive Skin/Sensitive Stomach and Science Diet Feline Oral Care.


                                    * * *

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 Nine Months Ended September 30, 2001 and 2000
                    (In Millions Except Per Share Amounts) (Unaudited)

                                   Third Quarter                Nine Months
                                2001           2000         2001           2000

Net Sales                   $2,391.2         $2,366.5     $7,013.4     $6,945.0

Cost of Sales                1,072.0          1,073.0      3,155.8      3,159.4


Gross Profit                 1,319.2          1,293.5      3,857.6      3,785.6

Gross Profit Margin             55.2%            54.7%        55.0%        54.5%

Selling, General and
Administrative Expenses        843.8            851.9      2,471.1      2,501.4

Earnings Before
Interest & Taxes               475.4            441.6      1,386.5      1,284.2

Operating Profit Margin         19.9%            18.7%        19.8%        18.5%

Net Interest Expense            43.5             48.3        130.0        133.6

Income Before Income Taxes     431.9            393.3      1,256.5      1,150.6

Provision for
Income Taxes                   135.7            118.0        405.2        373.5

Tax Rate                        31.4%            30.0%        32.2%        32.5%

Net Income                     296.2            275.3        851.3        777.1

Net Earnings Per Common Share:

        - Basic                 $.52             $.47         $1.49       $1.32
        - Diluted               $.49             $.44         $1.40       $1.24

Average Common Shares Outstanding:
(in millions)

        - Basic                554.5            573.6        559.9        576.1
        - Diluted              603.8            624.9        610.0        628.9




The full text of Colgate releases is available: www.colgate-palmolive.com

Shareholder Hotline: 1-800-850-2654
E-mail: Investor_Relations@Colpal.com
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