Colgate Comments on Venezuelan Currency Devaluation

Mon Feb 11, 2013 8:00am EST

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NEW YORK--(Business Wire)--
On Friday, February 8, 2013 the Venezuelan government announced its intention to
devalue its currency (bolivar fuerte). Although no official rules have yet been
issued, the official exchange rate is expected to move from 4.30 to 6.30 per
dollar, effective with the publishing of the next Official Gazette on February
13, 2013. 

It was also announced that the currency market administered by the central bank
known as SITME that traded at 5.30 bolivar fuertes per dollar will be
eliminated. As previously disclosed, under applicable regulations the Company`s
Venezuelan subsidiary was not permitted to access this currency market. Since
January 1, 2010, Venezuela has been designated hyper-inflationary and as such
all foreign currency fluctuations are recorded in income. 

The Company`s preliminary assessment of the impact of the devaluation is that
the Company will incur a one-time aftertax loss of approximately $120 million
($0.25 per share) in the first quarter of 2013, related to the remeasurement of
the local balance sheet at the date of the devaluation. 

There will also be ongoing impacts primarily related to the translation of the
local financial statements at the new exchange rate. It is the Company`s
preliminary estimate that these impacts will be in the range of $0.05 to $0.07
per share per quarter in 2013 taking into account both the Company`s ability to
take actions in Venezuela and elsewhere to mitigate the effect of the
devaluation and ongoing price control regulations in Venezuela. 

The devaluation will not have any impact on the Company`s 2012 results of
operations or financial position. 

*** 

About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer products
company, tightly focused on Oral Care, Personal Care, Home 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, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring,
Protex, Sorriso, Kolynos, elmex, Tom`s of Maine, Sanex, Ajax, Axion, Fabuloso,
Soupline and Suavitel, as well as Hill`s Science Diet and Hill`s Prescription
Diet. For more information about Colgate`s global business, visit the Company`s
web site at http://www.colgatepalmolive.com. To learn more about Colgate Bright
Smiles, Bright Futures oral health education program, please visit
http://www.colgatebsbf.com. CL-E 

Cautionary Statement on Forward-Looking Statements

This press release may contain forward-looking statements. Such statements may
relate, for example, to sales or volume growth, organic sales growth, profit or
profit margin growth, earnings growth, financial goals, the impact of currency
devaluations, exchange controls, price controls and labor unrest, including in
Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax
rates, new product introductions or commercial investment levels. These
statements are made on the basis of our views and assumptions as of this time
and we undertake no obligation to update these statements. We caution investors
that any such forward-looking statements are not guarantees of future
performance and that 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 information set forth under the caption
"Risk Factors" in the Company`s Annual Report on Form 10-K for the year ended
December 31, 2011) for information about certain factors that could cause such
differences. Copies of these filings may be obtained upon request from the
Company`s Investor Relations Department or on the Company`s web site at
http://www.colgatepalmolive.com.

Colgate-Palmolive Company
Bina Thompson, 212-310-3072
or
Hope Spiller, 212-310-2291 

Copyright Business Wire 2013