Colgate-Palmolive 3Q Profit Rises 18 Percent

BETSY VERECKEY

CHICAGO (AP) — Colgate-Palmolive Co.'s higher prices have continued to stick, helping the consumer products company post an 18 percent higher third-quarter profit.

Many consumer products companies, like Colgate, raised prices in the past year to cover higher ingredient costs, but some analysts say that won't be the case in coming months.

"The good news for consumers is that's now behind us for the most part," said Edward Jones analyst Jack Russo. "For the next couple quarters, you won't see price increases like you have in the past."

Colgate's brands are essential staples, such as its namesake toothpaste and soap. Rival Procter & Gamble makes consumer staples, but it also sells discretionary items, such as fragrances, which shoppers are less likely to buy right now. Earlier Thursday, P&G posted a 1 percent decline in profit, but that was still better than analysts expected.

Colgate-Palmolive also ramped up advertising, especially for new products, which boosted volume, revenue and market share.

The maker of toothpaste, dish soap and Ajax cleanser said Thursday that it earned $590 million, or $1.12 per share, in the quarter that ended in September. A year ago, Colgate earned $500 million, or 94 cents per share.