Colgate Profit Up, Even as It Hikes Prices
NEW YORK (
) --
Colgate-Palmolive
(CL) - Get Free Report
posted an 18% jump in third-quarter profit, as it raised prices on its products like Hill's Science Diet pet food.
During the quarter, the company earned $590 million, or $1.12 cents a share, compared with $500 million, or 94 cents, in the year-ago period. Analysts expected Colgate to earned $1.11 a share.
Revenue inched up to $4 billion from $3.99 billion, boosted by a 5% increase in prices worldwide. The company said it lifted prices to keep up with rising ingredient costs.
Sales from Hill Science Diet pet food grew 1.5% even as the company hiked prices 4.5%.
Colgate rolled out new products, such as Softsoap body butter apricot scrub and Ajax lime with bleach alternative dish soap.
While management did not provide a detailed forecast, it did say it expects double-digit earnings per share growth in 2010.
Rival
Procter & Gamble
(PG) - Get Free Report
also reported earnings that topped expectations.
The maker of Gillette razors and Crest toothpaste also raised its full-year sales forecast, sending shares climbing 3.6% to $59.26 in pre-market trading.
Still, Procter & Gamble seems to be facing more pressure than Colgate due to some pricier products, and sales for the quarter tumbled 6%.
-- Reported by Jeanine Poggi in New York
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