Colgate Announces Strong 4th Quarter and Year Results; 23rd Consecutive Quarter with Increased E.P.S.; Gross Profit Margin and Unit Volume Increases Across All Divisions.

    Business Editors

      NEW YORK--(BUSINESS WIRE)--February 5, 2002--Colgate-Palmolive
Company (NYSE:CL) announced the successful completion of a strong year
in 2001, with E.P.S. reaching $.52 per diluted share in the fourth
quarter, an increase of 13% versus the year ago period, excluding a
one-time charge in the quarter of $15 million.
      After the one-time charge, earnings per share rose 7% in the
quarter to $.49 per diluted share. The one-time charge incorporates
several items including a write down due to the bankruptcy of a major
U.S. retail account and a write down in the value of the Company's
Argentinean operation. This is Colgate's 23rd consecutive quarter of
increased E.P.S., net earnings and gross profit margin. Unit volume
and gross profit margin increased in every operating division
worldwide during the quarter.
      In the fourth quarter, worldwide unit volume rose 4.0% and global
gross profit margin increased 100 basis points, at the top end of the
Company's target range. Due to the strength of the U.S. dollar during
the quarter, worldwide dollar sales increased only slightly from the
all time high year ago fourth quarter. Net income increased 8% versus
the fourth quarter 2000, excluding the one-time charge noted above.
After the one-time charge, net income rose 3% in the quarter to $295.3
million.
      Colgate's global unit volume increased 5.0% for the full year
2001, with each operating division contributing strong unit growth.
During the year, unit volume, operating profit and operating profit
margin increased in every operating division worldwide. Diluted
earnings per share rose 12% to $1.91 versus $1.70 in 2000 before the
one-time charge in the fourth quarter previously discussed. After the
one-time charge, diluted earnings per share increased 11% to $1.89.
Full year dollar sales from continuing businesses increased 1.5% to an
all time high of $9.4 billion and would have increased 5.5% excluding
foreign exchange. Net income increased 9% versus 2000, excluding the
one-time charge. After the one-time charge, net income rose 8% for the
year to $1,146.6 million.
      Reuben Mark, Chairman and CEO, said: "With weak economic
conditions around the world, this was a strong finish to a strong
year. The combination of sharply higher gross margin and excellent
overhead control allowed us to provide a healthy increase in total
marketing spending worldwide while also meeting our profit
expectations. In addition, a special fourth quarter overseas income
tax benefit allowed us to provide even more brand marketing support
than we would have done otherwise. Market shares in our core
categories are growing in the U.S. and abroad, so we enter 2002 with
excellent momentum.
      "Our efficiency gains continue to exceed our expectations as the
next generation of SAP applications and other productivity programs
are implemented around the globe. Cash generation remains strong
reaching $1.6 billion in 2001, another all time record. After-tax
return on capital was also a record at 29.7% versus 26.4% in 2000.
      "In each of the last six years Colgate has delivered double-digit
earnings per share increases in conjunction with strong worldwide
volume growth and gross profit margin improvement. In the year 2002 we
again expect excellent volume growth and gross profit margin increases
which will support another double digit improvement in E.P.S."
      Global market shares increased across key categories including
toothpaste, toothbrushes, dishwashing liquid, deodorants, bar and
liquid soap, body wash, all purpose cleaners, fabric softeners and pet
nutrition. Colgate Total Plus Whitening and Colgate Herbal
toothpastes, Colgate Navigator toothbrush, Palmolive Fresh Green Apple
dishwashing liquid, Lady Speed Stick Ultra Dry deodorant, Palmolive
Vitamins body wash and liquid hand soap and Science Diet Canine and
Feline Oral Care are among the innovative new products strengthening
Colgate's market leadership positions worldwide.
      During 2001, Colgate purchased 21.7 million common shares at a
cost of $1.2 billion as part of its ongoing share repurchase program.
      At 11:00 a.m. EST today, Colgate will host a conference call to
further elaborate on fourth quarter and year results and to discuss
the Company's ongoing expectations. To access this call as a webcast,
please go to Colgate's web site on the Internet at
www.colgate-palmolive.com.

      The following are comments about divisional performance:

      Colgate-North America (25% of Company Sales)

      Fueled by broad-based new product momentum, unit volume grew 4.0%
and sales increased 2.0% in the fourth quarter. This growth is on top
of very strong volume and sales growth in the year ago period.
Further, consumer takeaway exceeded Company shipments as the level of
trade inventories dropped nationwide. Divisional operating profits in
the fourth quarter were flat with the year ago period due to the
one-time charge noted above brought about by the bankruptcy of a major
U.S. retail account. Excluding this one-time charge, North American
operating profit rose 5% against record operating profit in the year
ago period. For the year, unit volume grew 4.5%, sales rose 3.5% and
operating profit increased 6%.
      In the U.S., consumer takeaway of Colgate's products grew more
than three times faster than the aggregate category growth for 2001 as
a result of strong market share gains. The positive growth momentum
continued in the most recent quarter with retail consumption of
Colgate's products reaching an all time high during the month of
December. Impressive share gains were achieved broadly across
categories including toothpaste, deodorants, body wash, bar and liquid
soaps, fabric softeners, all purpose cleaners and automatic dishwasher
detergents. Colgate's leadership of the U.S. toothpaste market
increased to a national A.C. Nielsen market share of 34.8% for the
year, up 2.4 share points versus 2000. In Oral Care, new Colgate Total
Plus Whitening toothpaste, Colgate 2in1 toothpaste and mouthwash and
Colgate Motion battery powered toothbrush each contributed incremental
share. Standouts in other categories include Softsoap Vitamins body
wash and liquid hand soap, Palmolive Spring Sensations dishwashing
liquid, Mennen Speed Stick Power of Nature deodorants and Suavitel
fabric softener.
      Aggressive new product activity continued in 2001 with a record 21
new introductions. Keeping with its fast launch pace, Colgate U.S. has
already announced several new products for early 2002 including
Softsoap Naturals moisturizing body wash enriched with pure milk
proteins and natural milk extracts, Colgate Active Angle toothbrush,
Lady Speed Stick Clean Glide deodorant and new Softsoap Rainforest
Series liquid hand soap.

      Colgate-Latin America (26% of Company Sales)

      Latin America achieved 3.5% volume growth from continuing
businesses in the fourth quarter led by robust gains in Mexico,
Venezuela, Colombia, Central America, Chile and Jamaica. Brazil, which
enjoyed increased volume for the full year, had lower fourth quarter
volume when compared to an extremely strong year ago period. Brazil is
budgeted up in volume in 2002 as well. Continuing sales for the
Division declined 2.0% in the quarter due to exchange while fourth
quarter dollar operating profits increased 3% to another quarterly
record. For the year, volume and sales from ongoing businesses grew
5.0% and 0.5%, respectively. Excluding foreign exchange, continuing
sales rose 4% in the quarter and 6% for the year. Dollar operating
profits for the year increased 11% versus 2000.
      Colgate continues to strengthen its Oral Care leadership
throughout Latin America. Toothpaste market shares in Mexico,
Venezuela and Central America reached all time highs during the
quarter driven by the widespread success of Colgate Fresh Confidence,
Colgate Triple Action and Colgate Herbal toothpastes. In toothbrushes,
Colgate Navigator, Colgate Replace and new Colgate Active Flexible
toothbrushes strengthened shares throughout the region. Contributing
to gains in Personal Care were Lady Speed Stick Ultra Dry deodorant,
and Palmolive Naturals and Caprice shampoos. Axion Spring Sensations
dishwashing liquid and Suavitel Fresca Primavera fabric softener were
standout performers in other categories.

      Colgate-Europe (20% of Company Sales)

      European unit volume grew 4.0% in the fourth quarter with
especially strong performance in the United Kingdom, Belgium,
Switzerland, Holland, Greece, the Nordic group, Russia, Poland and the
Czech Republic. Dollar sales rose 4.5% versus the fourth quarter 2000
and dollar operating profits were up 18%. For the year, volume growth
was 5.5% and dollar sales increased 1.0%, reflecting more difficult
currency comparisons earlier in the year. Dollar operating profits
increased 7% for the year.
      Product innovation and well-executed pan-European new product
rollouts are driving growth across categories in Western Europe. Gains
in Oral Care were driven by the broad based success of Colgate Herbal
and Colgate Total Plus Whitening toothpastes, Actibrush Bzzz for kids
battery powered toothbrushes and a new line of children's toothbrushes
adorned with characters from the Warner Bros. movie Harry Potter and
the Sorcerer's Stone. Palmolive Aromatherapy shower gel and bath foam,
and Palmolive Vitamins shower gel and liquid hand soap boosted shares
in Personal Care while new Ajax wipes contributed incremental share in
Surface Care.
      New products spurring growth throughout the high growth regions of
Central Europe and Russia include Colgate Herbal Plus Whitening
toothpaste, Colgate Navigator toothbrush, Palmolive Aromatherapy
shower gel and bath foam, Palmolive Milk and Honey bar soap and Ajax
Floral Fiesta cream cleanser.

      Colgate-Asia/Africa (16% of Company Sales)

      Unit volume in Asia/Africa grew 4.0% in the quarter reflecting
successful new product activity throughout the region. Excellent
volume gains were achieved in China, Malaysia, Thailand, Australia,
New Zealand, Fiji, Vietnam and South Africa. These strong results
contributed to the Division's 6.0% volume growth for the full year.
Dollar sales declined 2.0% for the quarter and 1.0% for the year due
to currency translation. Excluding exchange, sales rose 2% and 6% for
the quarter and year, respectively. Dollar operating profits declined
4% in the fourth quarter and increased 1% for the year.
      Colgate's market leadership in toothpaste continues to expand in
China where our national A.C. Nielsen market share now stands at a
record 29.1%, up over three share points from the year ago period.
Expanded distribution, now in 524 cities, and winning new products
including Colgate Herbal and Colgate Triple Action toothpastes,
contributed to China's double-digit volume growth in the quarter.
      Innovative new products fueling growth elsewhere in the region
include Colgate Fresh Confidence toothpaste, Colgate Active Flexible
toothbrush, Palmolive Fruit Essentials shower gel and bar soap, Protex
Herbal bar soap, Axion Orange Fantasy dishwashing paste and Softlan
fabric softener.

      Hill's Pet Nutrition (13% of Company Sales)

      Technology-based new products and veterinary endorsements are
driving growth at Hill's, the world leader in specialty pet food.
Strong results both domestically and internationally contributed to
fourth quarter sales and volume growth of 4.5%. Operating profits
increased 11% in the quarter reflecting logistics optimization
programs worldwide and continued productivity improvements at Hill's
Etten Leur manufacturing facility in the Netherlands and elsewhere.
Sales and unit volume each rose 5.5% for the year and operating
profits increased 16% versus 2000.
      Hill's U.S. increased consumption of Science Diet in the specialty
retail channel, where its growth continues to outpace category growth,
and also enjoyed higher sales of Prescription Diet in the veterinary
channel. Recent introductions gaining wide acceptance are Science Diet
Canine and Feline Oral Care, Science Diet Canine Light Small Bites and
new Prescription Diet Canine b/d, a clinically proven product that
reduces the effects of canine aging.
      Hill's international growth was strong across Europe, South
Pacific and Latin America. Science Diet Canine and Feline Oral Care
and Prescription Diet Canine and Feline z/d for allergic animals
contributed to gains, as did enhanced merchandising programs.
      About Colgate-Palmolive: Colgate-Palmolive is a leading global
consumer products company, tightly focused on Oral Care, Personal
Care, Household Surface Care, Fabric Care and Pet Nutrition. Colgate
sells its products in over 200 countries and territories around the
world under such internationally recognized brand names as Colgate,
Palmolive, Mennen, Softsoap, Irish Spring, Protex, Sorriso, Kolynos,
Ajax, Axion, Soupline, Suavitel and Fab, as well as Hill's Science
Diet and Hill's Prescription Diet pet foods. For more information
about Colgate's global business, visit the Company's web site on the
Internet at www.colgate-palmolive.com.
      The Company's annual meeting of shareholders is currently
scheduled for May 8, 2002.
      This press release (other than historical information) contains
forward-looking statements. Actual events or results may differ
materially from those statements. Investors should consult the
Company's filings with the Securities and Exchange Commission
(including the Company's Form 8-K dated November 13, 1998) for
information about factors that could cause such differences. Copies of
these filings may be obtained upon request from the Company's Investor
Relations Department.


       Colgate-Palmolive Company Summary of Consolidated Results
        Three Months and Years Ended December 31, 2001 and 2000
      (Dollars in Millions Except Per Share Amounts) (Unaudited)

                            Fourth Quarter              Year
                           2001        2000        2001       2000
Net Sales               $2,414.4    $2,412.9    $9,427.8    $9,357.9

Cost of Sales            1,081.1     1,106.1     4,236.9     4,265.5

Gross Profit             1,333.3     1,306.8     5,190.9     5,092.4

Gross Profit Margin         55.2%       54.2%       55.1%       54.4%

Selling, General and
Administrative Expenses    885.0       850.5     3,356.1     3,351.9

Earnings Before
Interest and Taxes         448.3(a)    456.3     1,834.8(a)  1,740.5

Operating Profit Margin     18.6%       18.9%       19.5%       18.6%

Net Interest Expense        36.1        39.7       166.1       173.3

Income Before
Income Taxes               412.2       416.6     1,668.7     1,567.2

Provision for
Income Taxes               116.9       129.9       522.1       503.4

Tax Rate                    28.4%(b)    31.2%       31.3%(b)    32.1%

Net Income                 295.3(a)    286.7     1,146.6(a)  1,063.8

Net Earnings Per Common Share
         - Basic            $.53        $.49       $2.02       $1.81
         - Diluted          $.49(a)     $.46       $1.89(a)    $1.70

Average Common Shares Outstanding
         - Basic           551.6       571.5       557.8       574.9
         - Diluted         600.8       623.2       607.7       627.3

      (a) Excluding the one-time charge described in the release, fourth
        quarter earnings before interest and taxes would have been
        $464.3 (+2%), net income $309.8 (+8%) and diluted earnings per
        share $.52 (+13%). For the full year, earnings before interest
        and taxes would have been $1,850.8 (+6%), net income $1,161.1
        (+9%) and diluted earnings per share $1.91 (+12%).

      (b) Excluding the special fourth quarter overseas tax benefit
        described in the release, the tax rate would have been 31.4%
        in the quarter and 32.0% in the year.



The full text of Colgate releases is available:
  Internet Address:     http://www.colgatepalmolive.com
  Shareholder Direct:   1-800-850-2654
  E-mail:               [e-mail]

    --30--emb/ny*

    CONTACT: Colgate-Palmolive Company, New York
             Bina Thompson, 212/310-3072
             Hope Borkenstein, 212/310-2291

    KEYWORD:  NEW YORK
    INDUSTRY KEYWORD: BANKING CONSUMER/HOUSEHOLD FOODS/BEVERAGES
EARNINGS
    SOURCE:  Colgate-Palmolive Company