Colgate-Palmolive Co.’s first-quarter profit rose 4 percent as strong sales in the rest of the world helped offset weakness in the United States, the maker of Colgate toothpaste and Mennen deodorant said on Wednesday.
Colgate reported earnings of $338.5 million, or 59 cents a share, compared with $324 million, or 56 cents a share, a year earlier. The results met the average estimate of analysts polled by Reuters Research, a unit of Reuters Group Plc.
“It was actually a pretty good quarter.” said CIBC World Markets analyst Joseph Altobello. “It was in line with what were relatively lowered expectations.”
Altobello, who has a “sector performer” rating on the stock, said earnings did not benefit from one-time items they way they did in the two previous quarters.
Sales rose 7 percent to $2.51 billion, largely because of the weak dollar, which raises the value of sales in other countries when they are translated from local currencies.
The Reuters Research sales estimate was $2.47 billion.
Volume, which excludes currency and price fluctuations, rose 3 percent. Excluding divested businesses, volume rose 4 percent and sales increased 8 percent, Colgate said.
“Looking around the world, our market shares are good, the new product process is working well and margin gains are exceeding expectations,” Chief Executive Reuben Mark said in a statement.
Profit in North America, which had declined at the end of 2003, fell 8 percent in the first quarter, in part because of a tough comparison to the year-ago period, when the company had strong sales of Colgate Simply White tooth whitening gel.
“North America, while still struggling, was not as bad as it could have been,” Altobello said.
In Europe, sales rose 19 percent, helped by the weak dollar, and profit rose 14 percent. In Latin America, sales rose 7 percent and profit rose 6 percent, even after increased marketing spending, the company said.
In Asia and Africa, sales rose 12.5 percent and profit rose 28 percent, in part due to the weakening dollar.