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Colgate-Palmolive Company (NYSE:CL) today reported worldwide Net sales of $4,286 million in fourth quarter 2012, an increase of 2.5% versus fourth quarter 2011. Global unit volume grew 1.5%, pricing increased 2.5% and foreign exchange was negative 1.5%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 4.0%.
Net income and Diluted earnings per share in fourth quarter 2012 were $598 million and $1.26, respectively. Net income in fourth quarter 2012 included $73 million ($0.15 per diluted share) of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the “2012 Restructuring Program”) and costs associated with the sale of land in Mexico.
Net income and Diluted earnings per share in fourth quarter 2011 were $590 million and $1.21, respectively. As previously disclosed, Net income in fourth quarter 2011 included aftertax charges of $44 million ($0.09 per diluted share) resulting from the items described in Table 8.
Excluding the above noted items in both periods, Net income in fourth quarter 2012 was $671 million, an increase of 6% versus fourth quarter 2011, and Diluted earnings per share in fourth quarter 2012 was $1.41, an increase of 8% versus fourth quarter 2011.
Gross profit margin was 58.4% in fourth quarter 2012 versus 57.4% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.6% in fourth quarter 2012, an increase of 90 basis points versus the year ago quarter, as higher pricing and cost savings from the Company’s funding-the-growth initiatives more than offset the impact of increases in raw and packaging material costs and higher production costs in Venezuela.
Selling, general and administrative expenses were 34.7% of Net sales in fourth quarter 2012 versus 34.6% in fourth quarter 2011. Excluding the above noted items in both periods, Selling, general and administrative expenses increased by 10 basis points to 34.6% of Net sales in fourth quarter 2012, as overhead expenses increased by 20 basis points and advertising decreased by 10 basis points. Worldwide advertising spending on an absolute basis increased 1.4% versus the year ago quarter to $434 million.