Colgate Palmolive Company (CL) reported results for the fourth quarter and full year of 2009 with fourth quarter earnings of $1.21 per share, which was 8 cents above the Zacks Consensus Estimate of $1.13. Earnings were up 21% year-over-year, driven by effective price implementation and ongoing aggressive cost savings program.

Net sales for the quarter increased 11.5% year-over-year to $4.1 billion as unit volume increased 3.0%, pricing contributed 3.5% and foreign exchange contributed 5.0%. Organic sales (excluding foreign exchange, acquisitions and divestitures) increased 6.5% in the quarter.

Full-year 2009 net sales were flat year-over-year to $15.3 billion. Unit volume growth was 0.5% and pricing increased 6.0%, which was partially offset by a 6.5% negative foreign exchange impact. Organic sales for the year increased 6.5%.

North American sales increased 5.0% driven by 5.5% unit volume growth and a 1% favorable foreign exchange, partially offset by 1.5% lower pricing. In Latin America, sales grew 22.5% as unit volume increased 5.0%, driven by solid gains in Brazil and Columbia. In addition, pricing contributed 12.0% and foreign exchange contributed positive 5.5% to the top line.

In Europe/South Pacific, sales grew 12.5% as unit volume increased 2.5%, driven by volume gains in France, Italy, the United Kingdom and the GABA business. Although pricing was down 0.5%, foreign exchange contributed positive 10.5%. Sales in Greater Asia/Africa increased 10.5%, while unit volume grew 8.0% as volume gains in India, the Greater China and Thailand. Pricing increased 0.5% and foreign exchange contributed positive 2.0%.

Sales in the Hill’s Pet Nutrition business grew 1.5%, however unit volume declined 8.5% due to declines in the U.S., Japan and Russia, partially offset by gains in Germany, Australia and Mexico. Pricing contributed 3.0% and favorable foreign exchange contributed positive 4.0% to the top line.

Gross margins expanded 352 basis points (bps) to 59.4% from 56.0% in the prior-year period, driven by benefits of restructuring activities and pricing. The operating margin also increased 308 bps to 24.3% versus 21.2% in the prior-year quarter. Capital expenditures for fiscal 2009 were $575 million.

For the full year, net cash provided by operations increased 42% to $3.3 billion, due to efficient working capital management, especially a reduction in receivable days outstanding. The company has a debt-to-total-capitalization ratio of 50.5%.

Zacks Investment Research

1. (ETN) Eaton Corporation Beats Consensus EstimatesElectrical equipment maker Eaton Corporation (ETN) reported fourth quarter earnings of $1.35 per share, beating...
2. (WFC) Wells Fargo & Company Beats Consensus EstimatesWells Fargo & Co.’s (WFC) fourth quarter 2009 net income applicable to common stock came...
3. (BBY) Best Buy Company Beats Consensus Earnings EstimatesBest Buy Company Inc. (BBY) recently reported third-quarter 2010 results. The quarterly earnings of 53...
4. (CL) Colgate Palmolive Company Reports Modest EarningsColgate Palmolive Company (CL) reported results for the third quarter of 2009 with earnings of...
5. (CCE) Coca Cola Enterprises Beats the Consensus and Raises ExpectationsCoca Cola Enterprises (CCE) reported its second consecutive quarter of strong results, with earnings of...
6. (GIS) General Mills Beats Consensus & Raises EstimatesGeneral Mills Inc. (GIS) reported strong results for the first quarter of fiscal 2010, with...

Search Posts by Tag: CL | Colgate-Palmolive Company | Consumer Goods | Personal Products

RSS Feeds by Tag: CL | Colgate-Palmolive Company | Consumer Goods | Personal Products |

Other Posts by: vitalstocks | RSS Feed for this author