What was the primary driver of Colgate-Palmolive's sales growth in the second quarter of 2007?

The primary driver of Colgate-Palmolive's sales growth in the second quarter of 2007 was a strong increase in unit volume, which grew by 8.0% globally. This volume growth, combined with positive foreign exchange impacts and modest net selling price increases, contributed to a 13.0% rise in net sales.

How did the restructuring program affect the company's financial results?

The company's ongoing 2004 Restructuring Program, aimed at enhancing global leadership and building business, incurred pretax charges of $55.4 million in the second quarter of 2007. While these charges impacted reported operating profit, the program is expected to yield significant annual savings and is progressing on schedule. The decrease in restructuring charges compared to the prior year's quarter was a key factor in the substantial increase in operating profit.

What is the company's outlook for the remainder of 2007?

Colgate-Palmolive believes it is well-positioned for continued growth in a highly competitive market. The company's long-term strategy focuses on its core consumer products business, strong global brands, international presence in both developed and developing markets, and a solid capital base, all of which are expected to drive profitability and shareholder value.

Are there any significant legal or tax matters that investors should be aware of?

The company is involved in several ongoing legal and tax matters, including tax assessments in Mexico and Brazil, and competition law investigations in Europe. While management believes these matters are without merit and intends to defend its position vigorously, potential financial impacts cannot be guaranteed. Detailed information is provided in the 'Contingencies' note (Note 11) to the financial statements.

CL 10-Q Quarterly Report Q2 FY2007 — Revenue, Net Income, EPS

Summary

Colgate-Palmolive Company reported strong financial results for the quarter and six months ended June 30, 2007. Net sales increased by 13.0% for the quarter and 12.5% for the first half of the year, driven by robust unit volume growth across its global segments, particularly in Oral, Personal and Home Care, and Pet Nutrition. The company also benefited from positive foreign exchange impacts. Diluted earnings per share saw a significant increase, rising to $0.76 for the quarter and $1.65 for the six-month period, up from $0.51 and $1.10 in the prior year, respectively. This performance was achieved despite ongoing restructuring initiatives and increased advertising spending. The company's strategic focus on higher-margin businesses and global brand leadership continues to drive growth and profitability, positioning it well for future shareholder returns.

Key Highlights

1Net sales increased by 13.0% year-over-year for the second quarter of 2007, reaching $3,405.4 million, primarily driven by an 8.0% increase in unit volume.
2Diluted earnings per share (EPS) rose significantly to $0.76 for the second quarter of 2007, compared to $0.51 in the prior year's quarter.
3The "Oral, Personal and Home Care" segment showed strong performance with net sales up 13.0% and "Pet Nutrition" segment sales increased by 11.5% in the second quarter.
4Colgate-Palmolive is actively managing its restructuring and business-building program, with total pretax charges estimated between $925 and $1,075 million.
5The company generated substantial net cash from operating activities, increasing to $899.0 million for the first six months of 2007 from $695.9 million in the prior year.
6Increased advertising spending was noted, with a 22% rise in the second quarter of 2007, reflecting continued investment in brand building and market penetration.
7The company is actively repurchasing shares, with over 3.9 million shares bought back in the second quarter of 2007 under its authorized share repurchase program.

COLGATE PALMOLIVE CO Quarterly Report for Q2 Ended Jun 30, 2007

Summary

Key Highlights

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