NEW YORK (AP) — Colgate-Palmolive Co., which makes toothpaste, soap and other consumer products, said Thursday that its third-quarter net income was nearly unchanged, hurt by a stronger dollar.
Colgate-Palmolive, like most other consumer product companies, has been raising prices and trimming expenses to offset high costs for raw materials. It's in the middle of a cost-cutting program that includes shedding 6 percent of its staff by 2016.
Global unit volume rose 5 percent and the company raised prices 1 percent, but the stronger dollar hurt results by 4.5 percentage points. Companies that sell products overseas can suffer weaker demand there and diminished foreign income when the dollar strengthens.
Shares fell $1.16, or 1.8 percent, to $62.31 in premarket trading.
Net income after paying preferred dividends for the three months ended Sept. 30 totaled $656 million, or 70 cents per share. That compares with $654 million, or 68 cents per share, in the same months last year. Excluding one-time costs of selling land in Mexico and restructuring, profit came to 73 cents per share. That matched analyst expectations.
Revenue rose 1.5 percent, to $4.4 billion from $4.33 billion. Colgate-Palmolive said it gained market share in the U.S. in manual toothbrushes, powered toothbrushes, mouthwash, body washes and fabric conditioners. Analysts expected stronger growth, to $4.46 billion, according to FactSet.
Revenue rose 1percent in North America, which comprises 18 percent of sales. In Latin America, the company's largest region by sales at 29 percent, revenue fell 2 percent.
The New York company said it expected double-digit earnings per share growth in 2014.