Colgate Previews Second Quarter Earnings and Announces 15% Dividend Increase.New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York--(BUSINESS WIRE)--July 13, 1995-- Colgate-Palmolive (NYSE NYSE See: New York Stock Exchange symbol: CL) issued an alert to the financial community today that second quarter earnings, due to be released next week, are expected to be $.95 per share, falling 9 to 10 cents below analysts' expectations of $1.04 - $1.05 per share. This is due to economic conditions in Mexico, leading to reduced profits in that country. Reuben Mark, Colgate Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "As results from our operations in more than a hundred companies worldwide have come in, it has become evident that our expectations of being able to offset the sharp fall in Mexican profit elsewhere will not be fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. . We made up for a substantial loss of profits in Mexico in the first quarter with strong performances in all our other geographic businesses. We were not able to do that in the second quarter while still fully maintaining the strong worldwide support for our global franchises that is so important to our continued profitable growth." Mr. Mark continued, "While Mexico has temporarily reduced our earnings growth, our worldwide business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point are extremely sound." Mr. Mark continued, "In the second quarter, we expect to report net income of $143 million, slightly ahead of 1994's $142 million. Worldwide Earnings Before Interest and Taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income was up 12% in the quarter, and up more than 20% if Mexico is excluded. The quarter will also show excellent sales growth, with worldwide sales from ongoing operations up 13%, on a unit volume increase of 8%. "Business was especially strong in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , excluding Mexico, and in Asia/Pacific. Worldwide overhead was down as a percent to sales, while advertising spending in support of Colgate's strong global franchises was up significantly." Mr. Mark further said, "The Mexican economic difficulties are a short term problem, and with our strong worldwide business momentum, our earnings will be up in 1995 versus 1994, and will be up again in 1996, continuing our long string of annual increases in earnings per share. In their regularly scheduled July meeting today, the Colgate Board of Directors voted a 15% increase in the common stock dividend, from $.41 to $.47 quarterly, reflecting their view that the future outlook is indeed positive." Dividend dates The higher common dividend is payable August 15, 1995 to shareholders of record July 25, 1995. Directors also declared the regular $1.0625 quarterly dividend on the $4.25 preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , payable on October 2, 1995 to shareholders of record September 15, 1995. Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Household Care, Fabric Care and Pet Nutrition. Colgate sells its products under such internationally recognized brand names as Colgate, Palmolive, Mennen, Ajax, Soupline, Suavitel and Fab, as well as Hill's Science Diet and Hill's Prescription Diet pet foods. CONTACT: Bina Thompson 212-310-3072 Anne Crawford 212-310-2730 |
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