Colgate-Palmolive Co., which makes consumer products including its namesake toothpaste and dish soap, said Wednesday that first-quarter earnings fell 4 percent as the company took restructuring charges and a higher provision for income taxes.
Shares slipped more than 6.7 percent, or $5.08, to close at $70.70 Wednesday.
First-quarter earnings fell to $466.5 million, or 86 cents per share, from $486.6 million, or 89 cents per share, in the prior year.
Excluding restructuring charges in both periods and other one-time items, earnings totaled $487.7 million, or 90 cents per share, compared with $421.1 million, or 77 cents per share, a year ago.
Besides restructuring costs, Colgate's bottom line was hurt by a much higher provision for income taxes, which jumped 84 percent to $223.5 million in the first quarter.
Sales grew 16 percent to $3.71 billion, from $3.21 billion in the first quarter of 2007.
Analysts surveyed by Thomson Financial, who typically exclude one-time items, forecast first-quarter earnings of 89 cents per share on revenue of $3.57 billion.
The company's revenue was boosted by 5 percent unit volume growth and a 3 percent global pricing increase. The benefit of a weaker dollar on foreign sales also increased revenue.
Colgate said sharp increases in raw and packaging material costs were almost completely offset by increased pricing and cost savings initiatives.
President and Chief Executive Ian Cook said revenue growth was balanced between developed and developing countries. He said every operating division achieved sales, unit volume and operating profit increases.
"Unprecedented increases in commodity and other costs worldwide were, of course, encountered by Colgate and our competitors," Cook said in a statement. "Pleasingly, despite this unprecedented jump, the Company's aggressive savings programs, higher pricing and shift toward higher-margin oral care products virtually offset the impact of sharply rising raw and packaging material costs worldwide."
Cook said the company continues to expect double-digit earnings per share growth in 2008.
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