Colgate-Palmolive showing increased strength
Answer: This steady performer with more than 200 years of experience selling toothpaste and oral-care items continues to polish its expanded product line.
Some of its recent arrivals include Colgate Total Advanced Whitening toothpaste, Colgate 360 degree deep-clean manual toothbrush and upgraded-formula Mennen Speed Stick 24/7 deodorant.
Increased popularity of profitable premium toothpastes and more extensive advertising have helped to boost its key products to higher market share. It has derived significant benefits from corporate restructuring and overall cost savings.
Three-fourths of sales are outside the U.S., providing its strongest growth. But it is in a global battle with mighty Procter & Gamble, a much larger rival that boasts the power brands Crest, Gillette, Tide, Pampers and Oral B.
Both companies have targeted emerging markets as primary growth vehicles and say there has been no slowdown in the demand for their products there.
Colgate-Palmolive (CL) shares are up 2 percent this year after gains of 19 percent in each of the two prior years. The board has authorized a plan to buy back 30 million shares over the next two years.
The consensus recommendation on Colgate-Palmolive shares at their current price is "buy," according to Thomson Financial. That consists of five "strong buys," nine "buys," five "holds" and one "underperform."
Some of the well-known Colgate-Palmolive brands are Palmolive, Irish Spring, Softsoap, Ajax, Axion, Soupline and Tom's of Maine. Earnings are expected to increase 13 percent this year and 12 percent next year, with the five-year annualized growth rate projected to be 11 percent.
New Chief Executive Ian Cook — who replaced Reuben Mark, who left the post July 1 after 23 years in that job — received total 2007 compensation of $11.4 million, including stock awards, a Securities and Exchange Commission filing indicated.
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