Colgate Announces Strong 2nd Quarter

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NEW YORK-- (BUSINESS WIRE) -- Regulatory News:
Colgate-Palmolive Company (NYSE:CL) today announced excellentworldwide sales and unit volume growth together with higher thanexpected earnings growth for second quarter 2008. Worldwide salesgrew 16.5% to $3,964.8 million and unit volume grew 5.0%. Globalpricing increased 4.5% and foreign exchange added 7.0%. The verystrong top-line growth was supported by an 18% increase inworldwide advertising spending to an all-time record level.
Second quarter 2008 results include $29.5 million of aftertaxcharges related to the 2004 Restructuring Program. The year agoquarter included aftertax restructuring charges of $41.7 million.
Gross profit margin as reported was 56.5% in second quarter 2008and 56.0% in the year ago period. Excluding restructuring charges,gross profit margin decreased 30 basis points from 57.1% to 56.8%,reflecting increases in raw and packaging material costs worldwide,especially oil-related costs and agricultural commodities. Thesesharp increases were substantially offset by increased pricing andsuccessful savings initiatives.
Operating profit as reported increased 17% versus second quarter2007 to $767.0 million. Excluding restructuring charges, operatingprofit rose 13% to an all-time record $805.9 million.
Reported net income and diluted earnings per share in secondquarter 2008 were $493.8 million and $.92, respectively. Reportednet income and diluted earnings per share in second quarter 2007were $415.8 million and $.76, respectively. Excluding restructuringcharges, net income increased 14% in second quarter 2008 to arecord $523.3 million and diluted earnings per share increased 17%to $.98, also a record. In second quarter 2007, net income anddiluted earnings per share excluding restructuring charges were$457.5 million and $.84, respectively.
Net cash provided by operations year to date increased by 14% to$1,028.9 million. Working capital increased slightly to 3.5% ofsales versus 3.3% in the comparable 2007 period, and net debt (debtless cash and marketable securities) declined versus second quarter2007.
Ian Cook, Chief Executive Officer, commented on the results withoutrestructuring charges,