Colgate sales weak, Venezuela currency hit bigger
DETROIT (Reuters) - Colgate-Palmolive Co (CL.N) posted weaker-than expected sales and warned that the full-year impact of currency devaluation in Venezuela would be greater than anticipated, sending shares down 3.6 percent.
The toothpaste and household products maker posted a better-than-expected quarterly profit, however, and repeated that it expects double-digit earnings-per-share growth this year.
Net income in the second quarter rose to $603 million, or $1.17 a share, from $562 million, or $1.07 a share, a year earlier.
Analysts polled by Thomson Reuters I/B/E/S had expected a profit of $1.16 per share.
But while sales rose 2 percent to $3.81 billion, they were below the $3.94 billion analysts had expected. Sales in the company's ongoing operations, excluding foreign exchange, acquisitions and divestitures, grew 3.5 percent.
Volume of goods sold was up 3 percent and global pricing rose 0.5 percent.
The company also said the full-year hit of a currency devaluation in Venezuela will be 10 to 15 cents a share, up from its previous estimate of 6 to 10 cents. In April, Colgate's profit fell as it took a hefty charge to account for hyperinflation in that country.
Colgate, about one-fifth the size of giant rival Procter & Gamble Co (PG.N), said it expects its gross profit margin to be "up nicely" for the year.
Colgate shares were off 3.6 percent at $80.80 in premarket trading.
(Reporting by Ben Klayman; Editing by Lisa Von Ahn and Gerald E. McCormick)
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