June 2007 -- April 25, 2007, brought both good and bad news to the New York-based consumer products company. News of strong first quarter profits were mitigated by the announcement of longtime CEO Reuben Mark's retirement, effective July 1. Mark, CEO since 1984, will stay on as board chairman and will be replaced by another longtime executive with decades of in-house experience, COO Ian Cook.
Continuing this up/down/back up trend, Colgate-Palmolive took after-tax restructuring charges of $29.9 million, down from an after-tax hit of $46.8 million in the first quarter of last year and almost entirely offset by the sale of Colgate-Palmolive's Latin American bleach business for $29.7 million. A voluntary recall of pet food set the company back $8.2 million, but Colgate-Palmolive received an income tax benefit of $73.9 million.
Quarterly earnings rose to $486.6 million, or 89 cents per share, from $324.5 million (or 59 cents per share) during the same quarter one year ago. In sum, all the ups and downs translated to earnings of 77 cents a share, on par with analyst expectations,
According to executives, innovation and global strategy are keys to growth for Colgate-Palmolive. "At the core of our market share growth is a steady stream of innovative new products," said Mark in a statement to investors. "Our market shares are driven by our tight focus on the consumer, increasing our marketing spending, using new types of communication vehicles and conducting consumption-building activities in emerging markets around the world."
