From Deseret News archives:

Colgate-Palmolive showing increased strength

Published: Sunday, April 27, 2008 1:15 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Question: Can I expect improved results from my shares of Colgate-Palmolive Co.? — B.R., via the Internet

Answer: This steady performer with more than 200 years of experience selling toothpaste and oral-care items continues to polish its expanded product line.

Some of its recent arrivals include Colgate Total Advanced Whitening toothpaste, Colgate 360 degree deep-clean manual toothbrush and upgraded-formula Mennen Speed Stick 24/7 deodorant.

Increased popularity of profitable premium toothpastes and more extensive advertising have helped to boost its key products to higher market share. It has derived significant benefits from corporate restructuring and overall cost savings.

Three-fourths of sales are outside the U.S., providing its strongest growth. But it is in a global battle with mighty Procter & Gamble, a much larger rival that boasts the power brands Crest, Gillette, Tide, Pampers and Oral B.

Both companies have targeted emerging markets as primary growth vehicles and say there has been no slowdown in the demand for their products there.

Story continues below
Colgate-Palmolive (CL) shares are up 2 percent this year after gains of 19 percent in each of the two prior years. The board has authorized a plan to buy back 30 million shares over the next two years.

The firm has experienced some weakness in its Latin American markets, while its Hill's pet food business has been hurt by higher commodity prices. Meanwhile, French antitrust authorities reportedly are completing a two-year investigation of alleged collusion and price-fixing by European and U.S. consumer-products firms. Colgate-Palmolive is among those being probed.

The consensus recommendation on Colgate-Palmolive shares at their current price is "buy," according to Thomson Financial. That consists of five "strong buys," nine "buys," five "holds" and one "underperform."

Some of the well-known Colgate-Palmolive brands are Palmolive, Irish Spring, Softsoap, Ajax, Axion, Soupline and Tom's of Maine. Earnings are expected to increase 13 percent this year and 12 percent next year, with the five-year annualized growth rate projected to be 11 percent.

New Chief Executive Ian Cook — who replaced Reuben Mark, who left the post July 1 after 23 years in that job — received total 2007 compensation of $11.4 million, including stock awards, a Securities and Exchange Commission filing indicated.

Question: I am very disappointed with results from my Putnam Vista Fund shares. Any hope? — L.C., via the Internet

Comments

You can be the first to comment on this story.

previousnext

Latest comments

Hall reprimanded by MWC

BYU should also reprimand him by not allowing him to play in the bowl game....

Hall reprimanded by MWC

BYU is not about hating people, ever. Max must be disciplined by BYU....

Hall reprimanded by MWC

What said is said and no amount of explaining can take back what words were...

So what was the extent of the reprimand?! That it was public?

Maybe the "Holy War" should take a two year break to let things calm down a...

re: Jenny | 11:41 a.m. Nov. 30, 2009 Article 11 Treaty of Tripoli.

The $10 billion dollars per year given to the poor countries will go straight...

I like this article. In fact, I love it. I love everything about it. I love...

Matthews passes new Jazz tests

Randolph is another tough guy to check,it`s like guarding an elephant....a...

Religion in politics is tiresome

re: Mike Richards | 3:33 a.m. Nov. 30, 2009 //The writer would deny...

Advertisements