Summary
Colgate-Palmolive Company reported a net sales increase of 15.5% for the first quarter of 2008 compared to the same period in 2007, reaching $3.71 billion. This growth was driven by a combination of volume increases (5.0%), net selling price adjustments (3.0%), and a favorable foreign exchange impact (7.5%). The company continues to execute its 2004 Restructuring Program, which is progressing on schedule and is expected to deliver significant annual savings upon completion. Net income for the quarter was $466.5 million, a slight decrease from $486.6 million in the prior year, resulting in diluted earnings per share of $0.86 compared to $0.89 in the first quarter of 2007. The decrease in net income is attributed to factors including restructuring charges and a gain on the sale of non-core assets in the prior year, partially offset by lower interest expenses and a more favorable tax rate in the current quarter. The company also announced an 11% increase in its annualized common stock dividend.
Key Highlights
- 1Net sales increased by 15.5% to $3.71 billion, driven by 5.0% volume growth and 3.0% price increases, with a 7.5% positive foreign exchange impact.
- 2Diluted Earnings Per Share (EPS) decreased to $0.86 from $0.89 in the prior year's first quarter.
- 3Net income was $466.5 million, down from $486.6 million in Q1 2007, influenced by restructuring charges and a prior year gain on asset sale.
- 4The company's 2004 Restructuring Program is on track for completion by year-end 2008, with estimated pretax charges between $1,000 and $1,075 million.
- 5Operating profit for the quarter rose 11% to $723.7 million, driven by strong performance across all segments, particularly Greater Asia/Africa and Latin America.
- 6The company announced an 11% increase in its annualized common stock dividend to $1.60 per share.
- 7Cash flow from operations improved significantly, increasing by 17% to $569.9 million.