New York: Consumer products maker Colgate-Palmolive said Thursday its second-quarter profit fell 14% as sales fell, but it still beat analysts’ profit predictions as it held costs in check.
The New York-based maker of toothpaste, dish soap and Hill’s Science Diet pet food earned $561.6 million, or $1.07 per share, in the quarter that ended in June. That topped a $1.05-per-share average estimate of analysts polled by Thomson Reuters.
The quarter’s profit was up from the $493.8 million, or 92 cents per share, that Colgate earned a year earlier. The year-earlier results were dragged down by $29.5 million, or 6 cents per share, in restructuring costs.
Revenue fell 5.5% to $3.75 billion from $3.96 billion. Analysts had expected $3.81 billion in revenue.
In addition to its namesake toothpaste, Colgate sells brands such as Softsoap, Palmolive, Speed Stick and Irish Spring.
The company offset the lower sales and unfavorable exchange rates with higher prices and improved profit margins. CEO Ian Cook said the improved gross margins should continue for the rest of the year and that lower commodity costs should help.
“We are comfortable with external profit expectations for both the third quarter and the year,” Cook said in a statement.
Analysts predict Colgate will earn $1.10 per share in the third quarter and $4.25 per share in 2009.