Tags: Colgate-Palmolive | Earnings | Profit | Sales

Strong Dollar Forces Colgate to Cut Profit Forecast Again

Thursday, 30 April 2015 07:07 AM

Colgate-Palmolive Co. cut its profit forecast for the full year again, saying the impact of the stronger dollar would worsen, and reported a fall in sales for the third straight quarter.

Shares of the personal care products maker were down 1.6 percent in premarket trading on Thursday.

Colgate now expects its 2015 earnings per share to decline at a low-single-digit percentage rate, on a dollar basis.

The company cut the forecast to low single-digit percentage growth from mid-to-high single digit in January.

The dollar has surged about 5.5 percent against a basket of major currencies since the beginning of the year, making sales denominated in other currencies less valuable in dollar terms.

Colgate, which controls about 45 percent of the global toothpaste market, raised prices in emerging markets to offset the impact of a stronger dollar.

But higher prices have often led customers to turn to cheaper brands. In Latin America, where the company gets most of its money, sales have fallen in four of the past five quarters after the company raised prices.

Organic sales, which exclude the impact of foreign exchange, acquisitions and divestments, grew 4 percent in first quarter ended March 31.

Revenue fell nearly 6 percent to $4.07 billion.

"We continue to see significant deterioration in foreign exchange rates," Chief Executive Ian Cook said in a statement.

Net income attributable to the company rose to $542 million, or 59 cents per share, from $388 million, or 42 cents per share, a year earlier.

Excluding items, Colgate earned 66 cents per share.

Analysts on average had expected a profit of 66 cents per share and revenue of $4.07 billion, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $68.51 on Wednesday on the New York Stock Exchange.

© 2018 Thomson/Reuters. All rights reserved.

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Consumer products maker Colgate-Palmolive Co. reported its third straight quarter of falling revenue as a strong dollar reduced the value of overseas sales.
Colgate-Palmolive, Earnings, Profit, Sales
Thursday, 30 April 2015 07:07 AM
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