* Q2 EPS $1.33 excluding items; analyst view $1.33
* Sales $4.27 bln vs analyst view $4.25 bln
* Maintains 2012 forecast, forex likely to pressure EPS
July 26 Colgate-Palmolive Co posted a
higher quarterly profit on Thursday as the toothpaste maker
increased advertising and cut costs to mitigate the impact of
having the bulk of its business overseas in a difficult economic
Colgate said it still expected double-digit growth in
earnings per share this year on a currency-neutral basis, though
at current rates foreign exchange would eat into those gains.
Second-quarter profit rose to $627 million, or $1.30 per
share, from $622 million, or $1.26 per share, a year earlier.
Excluding items, Colgate earned $1.33 per share.
Analysts, on average, expected Colgate to earn $1.33 per
share, according to Thomson Reuters I/B/E/S.
Sales rose 2 percent to $4.27 billion, ahead of the
analysts' forecast of $4.25 billion.
Organic sales, which strip out the impact of foreign
exchange, acquisitions and divestitures, rose 8 percent, the
strongest gain Colgate has seen in eight quarters. The volume of
goods sold rose 5 percent, and pricing increased 3.5 percent.
New York-based Colgate gets most of its revenue from outside
the United States. Growth in Latin America, its largest market,
along with a range of emerging markets has helped offset weaker
economies in North America and Europe.
Organic sales grew 13 percent in emerging markets and just
2.5 percent in developed markets, Chief Executive Ian Cook said
in a statement.
In Latin America, which accounts for 29 percent of sales,
the volume of goods sold rose 6.5 percent, or 9.5 percent
excluding a divested detergent business.
In North America, which makes up 18 percent of sales, the
volume of goods sold slid 0.5 percent.
Colgate continues to be hurt by foreign exchange rates. If
average exchange rates were to remain at current spot rates for
the rest of the year, currency translation would cut its 2012
earnings per share growth by about 6 percent to 7 percent, Cook
Advertising spending rose 4 percent to $457 million. The
level of spending should be even higher during the second half
of the year, when Colgate promotes new products, Cook said.