US: Colgate downgrades FY forecast after weak Q3 | Progresiv
Colgate-Palmolive has downgraded its profit forecast for the full year, after reporting weaker-than-expected sales for its fiscal third quarter. For the three months to 30 September, overall sales were down 8.7% to 4 billion dollars, the fifth straight quarter they have fallen. Net profit was up 34% to 726 million dollars, but this was largely due to a one-off 120 million dollars gain from the sale of some brands. 
The group was particularly hurt by the strength of the US dollar, which has prompted it to raise prices, a move that has hit volumes in key markets such as Latin America. Sales in that region fell by 11% in the quarter, with volumes down 1%.
CEO Ian Cook said volumes will take some time to improve following the price hikes, a development that is not expected to happen this year. Colgate now expects full-year underlying earnings per share to decline by a low- to mid-single digit, compared to its earlier forecast for a low single-digit decline. (www.kamcity.com)
