UPDATE: Colgate-Palmolive Posts In-Line Q3 Earnings, Revenue Misses View

Colgate-Palmolive Co

reported in-line earnings for the third quarter and lowered its profit forecast for the full year. The New York-based company posted quarterly net income of $542 million, or $0.59 per share, compared to $656 million, or $0.70 per share, in the year-ago quarter. Excluding certain items, the company earned $0.76 per share. Its sales dropped 0.5% to $4.379 billion. However, analysts were expecting a profit of $0.76 per share on revenue of $4.46 billion. North America net sales rose 2.0%, while Latin America net sales slipped 4.5% in the quarter. Europe/South Pacific net sales gained 0.5%, while Asia net sales surged 1.0%. Africa/Eurasia net sales declined 3.5%. Hill's net sales gained 4.0% in the quarter. Global unit volume climbed 2.0%, while pricing rose 1.5% in the quarter. Gross profit margin narrowed to 58.4% from 58.8%, while operating profit fell 7% to $948 million from $1,016 million. Ian Cook, Chairman, President and Chief Executive Officer, said, “We are pleased to have achieved another quarter of broad-based organic sales growth and higher profitability, despite difficult economic conditions worldwide.” For the full year, Colgate-Palmolive now expects EPS growth of 3% to 4%, versus its earlier forecast of a 4% to 5% growth. Colgate-Palmolive shares declined 0.41% to close at $65.05 yesterday.