Colgate's net income rose to $507.9 million from $466.5 million a year earlier, aided by cost cutting and increased pricing. Sales fell 5.5% to $3.5 billion and unit volume fell 0.5%.
Following price cuts of between 4% and 20% by rivals Unilever and P&G, Colgate raised prices on some its brands. More price hikes are expected in coming months.
Colgate CEO Ian M. Cook received almost $11 million in compensation in 2008, up 31% over the previous year.
GE said it won a $300 million contract to supply equipment for the construction of a natural gas pipeline across China. When completed in the next six years, the pipelin will stretch roughly 20,000 km and bring $600 million in revenue to GE. The pipeline is being built by PetroChina.
Colgate reported fourth quarter profit rose 20%, beating Wall Street expectations. The company said it was on track to meet forecasts for 2009 despite the economic slowdown.
Despite troubles in the broader economy, Colgate-Palmolive reported earnings of $499.9 million, or 94 cents per share, up from $420.1 million, or 77 cents per share last year.
In the worst month of trading since the 1989 stock market collapse, all major stocks took a hit.
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CL Reports 2Q FY2008 Earnings
Colgate-Palmolive has released its Q1 FY2008 earnings, exibiting stead growth in all areas except Home Care, which remained flat for the quarter.
News breaks that a number of fake Colgate-branded toothpaste branded products from South Africa have been dessiminated in the US. The fake toothpaste products contain a toxic chemical commonly found in engine anti-freeze solutions. Investors sell Colgate stock due to a potential negative affect on Colgate's core products and the company's own lackluster response.
A 9% sell-off in the Chinese stock market roils markets world-wide. The New York Stock Exchange suffers a major sell-off; despite recent highs, Colgate-Palmolive investors join the global selling frenzy.
Colgate's stock rises on the heels of its earnings report which beats analysts expections. Colgate's profit is driven primarily by strong global growth.
