Consumer-product maker Colgate-Palmolive Co. said Thursday its fourth-quarter net income fell 6 percent, but adjusted results beat expectations as cost cuts offset higher raw material costs and the stronger dollar.
Consumer-product companies like Colgate Palmolive have been looking to offset stagnant sales in developed markets with growth in emerging markets overseas. The majority of Colgate-Palmolive’s business is done overseas.
The maker of its namesake toothpaste and soap said net income fell 6 percent to $564 million, or 60 cents per share. That compares with net income of $598 million, or 63 cents per share, last year. Excluding restructuring costs and other one-time items, income was 75 cents per share, ahead of the 74 cents per share analysts were expecting, according to FactSet.
Revenue rose nearly 2 percent, to $4.36 billion from $4.29 billion. The stronger dollar hurt results by 4.5 percentage points. Analysts had expected revenue of $4.38 billion.
Global volume rose 6.5 percent.
For the year, net income fell 9 percent to $2.24 billion, or $2.38 per share. That compares with net income of $2.47 billion, or $2.57 per share, in 2012.
Revenue edged up 2 percent, to $17.42 billion from $17.09 billion.
CEO Ian Cook predicted strong sales growth in 2014 fueled by new products across all categories and geographies.
He said Colgate expects 2014 earnings-per-share growth in line with Street estimates. According to FactSet, analysts expect $3.09 per share for the New York company.