Colgate Forecast Calls For Higher Volume, Lower Profit On Spending
This article was originally published in The Rose Sheet
Executive Summary
Colgate's effort to boost marketing support to maintain leading share positions is fueling volume sales and market share growth, but also will result in lower than expected earnings in the second half of the year, Chairman and CEO Reuben Mark warned investors during a conference call Sept. 20
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Colgate Brushes Up Its Bottom Line With Restructuring Initiative
Colgate is undertaking a four-year restructuring and business-building plan aimed at increasing the company's gross profit and operating profit by generating annual savings of $250 mil.-$300 mil. after tax by the fourth year. After tax savings in 2005 are expected to be approximately $45 mil
Colgate
"Quiet innovations," or product launches that are not highly publicized, are key to building Colgate's long-term business, CEO Reuben Mark says during recent presentation at the Morgan Stanley Global Consumer Conference in New York City. Exec cites Colgate launches such as Simply White and Max Fresh toothpastes, as well as the upcoming 360° toothbrush with tongue cleaner as examples of "quiet innovations" which will continue to generate sales. Mark also reassured analysts that Colgate's global business remains strong despite the firm's recent decision to lower its earnings targets for the third and fourth quarters (1"The Rose Sheet" Sept. 27, 2004, p. 8). Colgate will continue to focus on core categories and growing market share and expects earnings per share to be $.06-$.10 next year, he adds...