Colgate sales hit by strong dollar, weakness in Latin America

(Reuters) - Colgate-Palmolive Co (NYSE: CL) reported a steeper-than-expected drop in quarterly sales, mainly due to a strong dollar, and the world's biggest toothpaste maker said full-year earnings would likely be lower than anticipated.

Colgate has been trying to cushion the impact of the dollar's strength by raising prices, mainly in Latin America, but the move has hit both revenue and volumes in the region.

Sales in Latin America fell 11 percent in the third quarter ended Sept. 30, while volumes fell 1 percent. The region accounts for 27 percent of the company's sales.

Overall, foreign exchange had a 13 percent negative impact on total sales in the quarter, Colgate said on Friday.

The company said it now expected full-year earnings per share to decline by a "low to mid-single digit", excluding items, based on current exchange rates.

The earlier forecast was for a "low single-digit" decline.

Colgate's total sales fell 8.7 percent to $4 billion in the latest quarter - the fifth straight decline, and slightly below the average analyst estimate.

Net income attributable to Colgate rose to $726 million, or 80 cents per share, from $542 million, or 59 cents per share, a year earlier.

Excluding items, the company earned 72 cents per share, matching the average analyst estimate, according to Thomson Reuters I/B/E/S.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Ted Kerr)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Korn Ferry (KFY) Tops Q1 EPS by 7c, Beats on Revenue; Offers Q2 EPS Guidance
• Braze stock tumbles 10% on weak third quarter EPS guidance
• Sysco raises mid-term targets, unveils $500M AI efficiency program