Consumer products maker Colgate-Palmolive Company (
CL ) on Thursday posted a rise in third quarter
profits despite a downturn in revenue.
The New York-based company also disclosed plans to cut more than
2,300 jobs over the next few years in an effort to reduce
Colgate reported third quarter net income of $654 million, or
$1.36 per share, compared with $643 million, or $1.31 per share, in
the year-ago period. Excluding special items, adjusted profit was
$1.38 per share.
Revenue fell 1% from last year to $4.33 billion.
On average, Wall Street analysts expected a matching profit of
$1.38 per share, albeit on higher revenue of $4.38 billion.
In a separate announcement, CL said it would reduce its
workforce by 6% by the end of 2016. Based on the company's current
head count of 38,600 employees, those job cuts would total about
2,316 workers. The move is expected to produce annual savings of
$365 million to $435 million by the end of the layoffs.
Colgate-Palmolive shares were unchanged in premarket trading
The Bottom Line
Shares of Colgate-Palmolive ( CL ) have a 2.33%
dividend yield, based on last night's closing stock price of
$106.56. The stock has technical support in the $100-$103 price
area. The stock is trading near the all-time highs of $110-$111 a
Colgate-Palmolive Company ( CL ) is not
recommended at this time, holding a Dividend.com DARS™ Rating of
3.4 out of 5 stars.
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as a detailed explanation of our ratings system here .