NEW YORK, N.Y. - Colgate-Palmolive Co.'s second-quarter net income rose more than seven per cent as the consumer products maker kept selling more of its Palmolive dishwashing liquid, Ajax cleanser and Colgate toothpaste.
The world's largest toothpaste maker has maintained sales of its name-brand products even as shoppers traded down in the weak economy. It is also expanding in developing markets including South America and boosting advertising to keep people spending.
The company said Thursday that it earned $603 million, or $1.17 per share, in the three months ending in late June. That's up from $562 million, or $1.07 per share, in the same quarter last year.
Revenue rose almost 2 per cent to $3.81 billion, up from $3.75 billion last year.
Analysts surveyed by Thomson Reuters expected the New York company to earn $1.16 per share on revenue of $3.94 billion.
Volume among the company's line of products held up well in the quarter, climbing 3 per cent around the world. The outlier again was Hill's pet food division, which accounts for 13 per cent of company sales. There, volume fell 4 per cent.
Pricing held up well, too, alleviating a major concern for investors. Some companies have been cutting prices and running promotions to keep people buying, but that means profit margins shrink. But Colgate said pricing climbed half a per cent during the quarter around the globe.
Also Thursday, Colgate-Palmolive said the devalued Venezuelan currency would likely be a bigger drag on full-year results than previously expected. The company now expects the impact of that country's currency devaluation would drag down full-year profit by 10 cents per share to 15 cents per share. It had previously expected profit to be reduced between 6 cents per share and 10 cents per share.
Colgate shares climbed 14 cents to $84 in premarket trading Thursday. Shares closed Wednesday at $83.86.
