the FINANCIAL -- Colgate-Palmolive Company reported worldwide Net sales
of $4,172 million in fourth quarter 2011, an increase of 5.0% versus
fourth quarter 2010. Global unit volume grew 4.0%, pricing increased
3.0% and foreign exchange was negative 2.0%. Excluding divested
businesses, global unit volume grew 4.5%, according to Colgate-Palmolive Company.
The Sanex acquisition contributed 1.5% to sales and volume growth. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 6.0%.
Net income and Diluted earnings per share in fourth quarter 2011 were $590 million and $1.21, respectively. Net income in the quarter included $44 million of aftertax charges resulting from the previously disclosed implementation of various business realignment and other cost-saving initiatives, the sale of land in Mexico and a previously disclosed competition law matter in France related to a divested detergent business.
Net income and Diluted earnings per share in fourth quarter 2010 were $624 million and $1.24, respectively. As previously disclosed, Net income in fourth quarter 2010 included one-time items which fully offset and had no aftertax impact on earnings.
Excluding the above noted items in both periods, Net income in fourth quarter 2011 was $634 million, an increase of 2% versus fourth quarter 2010, and Diluted earnings per share in fourth quarter 2011 was $1.30, an increase of 5% versus fourth quarter 2010 and in line with expectations.
Gross profit margin was 57.4% in fourth quarter 2011, down 170 basis points versus the year ago quarter. Excluding the costs associated with the business realignment and other cost-saving initiatives noted above, gross profit margin was 57.7% in fourth quarter 2011, down 140 basis points versus the year ago quarter, reflecting continued increases in raw and packaging material costs worldwide. These increases were partially offset by higher pricing and cost savings from the Company's funding-the-growth initiatives.
Selling, general and administrative expenses were 34.6% of Net sales in fourth quarter 2011 and 2010. Excluding costs associated with the business realignment and other cost-saving initiatives noted above, Selling, general and administrative expenses were 34.5% of Net sales in fourth quarter 2011, 10 basis points lower than the year ago quarter, as overhead expenses decreased by 20 basis points and advertising increased by 10 basis points. Worldwide advertising spending increased 5% versus the year ago quarter to $428 million.
Operating profit increased 2% to $923 million in fourth quarter 2011 compared to $905 million in fourth quarter 2010. Excluding the above noted items in both periods, operating profit increased 3% to $972 million.
Net cash provided by operations for full year 2011 and 2010 was $2,896 million and $3,211 million, respectively. Net cash provided by operations for full year 2011 and 2010 reflects $178 million and $35 million, respectively, of cash used to voluntarily fund pension plans. Working capital as a percentage of Net sales was 0.7%, up 40 basis points versus the year ago period. This increase was primarily due to higher levels of accounts receivable and inventories, which though higher in absolute dollars, were in line with prior year levels of days sales outstanding for receivables and months coverage of inventory.
For the full year 2011, worldwide Net sales were $16,734 million, up 7.5% versus full year 2010. Global unit volume grew 3.5%, pricing increased 1.0% and foreign exchange was positive 3.0%. Excluding divested businesses, global unit volume grew 4.0%. The Sanex acquisition contributed 1.0% to full year sales and volume growth. Organic sales grew 4.0%.
Net income and Diluted earnings per share for full year 2011 were $2,431 million and $4.94, respectively. Full year 2011 results include an aftertax gain of $135 million ($0.27 per diluted share) resulting from the sale of the Company's laundry detergent business in Colombia, $177 million of aftertax charges ($0.36 per diluted share) resulting from the previously disclosed implementation of various business realignment and other cost-saving initiatives, the sale of land in Mexico and a previously disclosed competition law matter in France related to a divested detergent business.
Net income and Diluted earnings per share for full year 2010 were $2,203 million and $4.31, respectively. Full year 2010 results include a one-time, aftertax charge of $271 million related to the transition to hyperinflationary accounting in Venezuela as of January 1, 2010 and certain other items which fully offset and had no aftertax impact on earnings.
Excluding the items noted above in both periods, Net income for full year 2011 was even with full year 2010 and Diluted earnings per share increased 4%.
Gross profit margin was 57.3% for full year 2011, down 180 basis points versus full year 2010. Excluding the costs associated with the business realignment and other cost-saving initiatives noted above, gross profit margin was 57.6% in full year 2011, down 150 basis points versus full year 2010, reflecting significant increases in raw and packaging material costs worldwide. These sharp increases were partially offset by higher pricing and cost savings from the Company's funding-the-growth initiatives.
Ian Cook, Chairman, President and Chief Executive Officer, commented on the results and outlook excluding the 2011and 2010 items noted above, "We are pleased to have finished the year with excellent top-line momentum and to have achieved our profit goals, despite continuing increases in material costs, an intense competitive environment and volatile macroeconomic conditions worldwide.
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