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NEW YORK — Higher selling prices and cost cuts helped first-quarter profit rise 9 percent, consumer goods maker Colgate-Palmolive Co. said Thursday, despite the stronger dollar and a drop in European sales.
The company, known for its namesake toothpaste and dishwashing soap, said quarterly profit rose to $507.9 million, or 97 cents per share, from $466.5 million, or 86 cents per share, a year ago. That was a penny higher than the average forecast of analysts polled by Thomson Reuters.
Revenue fell 6 percent to $3.5 billion from $3.71 billion. Analysts had expected $3.6 billion.
"Our cost-cutting and efficiency programs as well as increased pricing more than offset the impact during the quarter of higher raw and packaging material costs worldwide and the strengthening dollar," CEO Ian Cook said in a statement.
Sales were hurt by the stronger dollar, but lower advertising costs helped quite a bit, said Edward Jones analyst Jack Russo. Selling, general and administrative expenses declined 12 percent to $1.19 billion from $1.35 billion last year.
"Overall, it was a pretty good quarter," Russo said. "They should get a benefit from lower commodity costs as we go forward in 2009."
The weakest geographic region was Europe and the South Pacific, where sales fell 20 percent, hurt by volume declines in France, Britain, Italy and other countries, as well as the stronger dollar and higher costs.
In the U.S., sales rose 3 percent as Colgate-Palmolive said new products such as Colgate Max Fresh with Mouthwash Beads helped the company gain market share. In the current quarter, the company plans to fully distribute and market Colgate Wisp mini-brush and Colgate Sensitive Enamel Protect toothpaste.
In Latin America, sales fell 4 percent, with the best results in Brazil, Venezuela, Colombia and Argentina.
The company said commodity and oil prices are set to ease as the year goes on and added that it is "comfortable" with analyst earnings expectations for earnings of $1.04 per share in the second quarter and $4.21 per share for the year.
Shares of the company slipped 42 cents to $59.32 in morning trading.
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AP Business Writer Michelle Chapman contributed to this report.
