Colgate Announces 4th Quarter and Full Year 2012 Results

  Colgate Announces 4th Quarter and Full Year 2012 Results

   Operating Profit, Net Income and Diluted EPS All Up for 4Q and Full Year

Business Wire

NEW YORK -- January 31, 2013

Colgate-Palmolive Company (NYSE:CL) today reported worldwide Net sales of
$4,286 million in fourth quarter 2012, an increase of 2.5% versus fourth
quarter 2011. Global unit volume grew 1.5%, pricing increased 2.5% and foreign
exchange was negative 1.5%. Organic sales (Net sales excluding foreign
exchange, acquisitions and divestments) grew 4.0%.

Net income and Diluted earnings per share in fourth quarter 2012 were $598
million and $1.26, respectively. Net income in fourth quarter 2012 included
$73 million ($0.15 per diluted share) of aftertax charges resulting from the
implementation of the previously disclosed four-year Global Growth and
Efficiency Program (the “2012 Restructuring Program”) and costs associated
with the sale of land in Mexico.

Net income and Diluted earnings per share in fourth quarter 2011 were $590
million and $1.21, respectively. As previously disclosed, Net income in fourth
quarter 2011 included aftertax charges of $44 million ($0.09 per diluted
share) resulting from the items described in Table 8.

Excluding the above noted items in both periods, Net income in fourth quarter
2012 was $671 million, an increase of 6% versus fourth quarter 2011, and
Diluted earnings per share in fourth quarter 2012 was $1.41, an increase of 8%
versus fourth quarter 2011.

Gross profit margin was 58.4% in fourth quarter 2012 versus 57.4% in the year
ago quarter. Excluding the above noted items in both periods, Gross profit
margin was 58.6% in fourth quarter 2012, an increase of 90 basis points versus
the year ago quarter, as higher pricing and cost savings from the Company’s
funding-the-growth initiatives more than offset the impact of increases in raw
and packaging material costs and higher production costs in Venezuela.

Selling, general and administrative expenses were 34.7% of Net sales in fourth
quarter 2012 versus 34.6% in fourth quarter 2011. Excluding the above noted
items in both periods, Selling, general and administrative expenses increased
by 10 basis points to 34.6% of Net sales in fourth quarter 2012, as overhead
expenses increased by 20 basis points and advertising decreased by 10 basis
points. Worldwide advertising spending on an absolute basis increased 1.4%
versus the year ago quarter to $434 million.

Operating profit increased 2% to $942 million in fourth quarter 2012 compared
to $923 million in fourth quarter 2011. Excluding the above noted items in
both periods, Operating profit increased 6% to $1,035 million.

Net cash provided by operations for the full year 2012 increased 10% to $3,196
million compared to $2,896 million for the full year 2011. The increase was
driven by strong operating earnings as well as a continued tight focus on
working capital, especially accounts receivable and inventory management. Free
cash flow before dividends exceeded 100% of Net income. Working capital as a
percentage of Net sales was 0.7%, even with the year ago period.

For the full year 2012, worldwide Net sales were $17,085 million, up 2.0%
versus full year 2011. Global unit volume grew 3.0%, pricing increased 3.0%
and foreign exchange was negative 4.0%. Excluding divested businesses, global
unit volume grew 3.5%. The Sanex acquisition contributed 0.5% to full year
sales and volume growth. Organic sales grew 6.0%.

Net income and Diluted earnings per share for full year 2012 were $2,472
million and $5.15, respectively. Full year 2012 results include $102 million
($0.21 per diluted share) of aftertax charges resulting from the
implementation of the 2012 Restructuring Program, the implementation of the
previously disclosed business realignment and other cost-saving initiatives
and costs associated with the sale of land in Mexico.

Net income and Diluted earnings per share for full year 2011 were $2,431
million and $4.94, respectively. As previously disclosed, full year 2011
results included net aftertax charges of $42 million ($0.09 per diluted share)
resulting from the items described in Table 9.

Excluding the items noted above in both periods, Net income for full year 2012
increased 4% versus full year 2011 and Diluted earnings per share increased 7%
versus full year 2011.

Gross profit margin was 58.1% for full year 2012 versus 57.3% in full year
2011. Excluding the items noted above in both periods, gross profit margin was
58.3% in full year 2012, up 70 basis points versus full year 2011, as higher
pricing and cost savings from the Company’s funding-the-growth initiatives
more than offset the impact of increases in raw and packaging material costs
and negative foreign exchange transaction costs.

As previously disclosed, the 2012 Restructuring Program is projected to result
in cumulative pretax charges, once all phases are approved and implemented,
totaling between $1,100 and $1,250 million ($775 and $875 million aftertax),
with pretax savings projected to be in the range of $365 to $435 million ($275
to $325 million aftertax) annually by the fourth year of the program. Fourth
quarter projects under the 2012 Restructuring Program have been initiated
largely as planned, with savings from the 2012 Restructuring Program expected
to be realized beginning in 2013.

Ian Cook, Chairman, President and Chief Executive Officer, commented on the
results and outlook excluding the 2012 and 2011 items noted above, “We are
very pleased to have ended the year with another quarter of strong
profitability. Gross profit margin, operating profit margin and net income as
a percent of sales all increased versus the year ago period.

“As we began 2012, we anticipated an intense competitive environment, and
challenging foreign currency exchange and macroeconomic conditions worldwide.
Despite this, we planned to improve worldwide market shares and volume growth,
achieve gross margin expansion, increase commercial spending and grow diluted
earnings per share at a double-digit rate, on a currency-neutral basis.

“We are delighted that we were able to achieve all of these objectives in
2012. It was another year of healthy top-line growth as well, with organic
sales increasing 6.0%, led by the emerging markets where organic sales grew a
robust 10.0%. Pleasingly, this growth was well balanced between solid unit
volume gains and higher pricing worldwide.

“Colgate’s global market shares in toothpaste and manual toothbrushes are both
at record highs year to date. Colgate’s share of the global toothpaste market
strengthened to 44.6% year to date, up 0.5 share points versus year ago. Our
global leadership in manual toothbrushes also strengthened during the quarter
with Colgate’s global market share in that category reaching 32.7% year to
date, up 0.8 share points versus year ago.

“Looking forward, we expect our growth momentum to continue as we enter 2013.
Our new product pipeline is very full around the world and we are pleased that
our global restructuring program is on track and proceeding smoothly. We also
continue to be sharply focused on our aggressive funding-the-growth programs
and our strategic worldwide pricing initiatives.

“Based on this, we anticipate another year of gross margin expansion in 2013
and that diluted earnings per share will grow at a double-digit rate, on a
dollar basis, excluding charges related to the 2012 Restructuring Program and
absent any major currency devaluations or significant macroeconomic events.”

At 11:00 a.m. ET today, Colgate will host a conference call to elaborate on
fourth quarter results. To access this call as a webcast, please go to
Colgate’s web site at http://www.colgatepalmolive.com.

The following are comments about divisional performance for fourth quarter
2012 versus the year ago period. See attached Geographic Sales Analysis and
Segment Information schedules for additional information on divisional sales
and operating profit.

North America (18% of Company Sales)

North America Net sales increased 4.0% in fourth quarter 2012. Unit volume
increased 1.5% with 2.0% higher pricing and 0.5% positive foreign exchange.
Organic sales increased 3.5% during the quarter.

Operating profit in North America increased 23% in the fourth quarter of 2012
to $236 million, or 30.0% of Net sales.This increase in Operating profit was
due to an increase in Gross profit and a decrease in Selling, general and
administrative expenses, both as a percentage of Net sales. This increase in
Gross profit was driven by cost savings from the Company’s funding-the-growth
initiatives and higher pricing, which were partially offset by higher raw and
packaging material costs. This decrease in Selling, general and administrative
expenses was primarily due to lower advertising expenses.

In the U.S., Colgate’s toothpaste market share reached 36.1% year to date, up
1.0 share point versus year ago, driven by strong sales of Colgate Optic White
and Colgate Optic White Enamel White toothpastes. In manual toothbrushes,
Colgate’s leading market share reached 35.7% year to date, up 2.1 share points
versus year ago, driven by the success of Colgate 360° Optic White, Colgate
360° Sensitive Pro-Relief and Colgate Extra Clean manual toothbrushes.

Successful products driving growth in the U.S. in other categories include
Colgate Optic White mouthwash, Softsoap brand Pampered Hands Coconut Lime
Parfait foaming hand soap, Softsoap brand Citrus Splash & Berry Fusion body
wash, Palmolive Soft Touch with Coconut Butter dish liquid, Suavitel fabric
conditioner and Fabuloso liquid cleaner.

Exciting new products launching in first quarter 2013 include Colgate 360°
Total Advanced Floss Tip bristles manual toothbrush, Colgate Optic White Dual
Action toothpaste and Colgate Total Zx Pro-Shield Plus Sensitivity toothpaste
offering long-lasting protection for teeth, gums and sensitivity.

Latin America (29% of Company Sales)

Latin America Net sales increased 1.5% in fourth quarter 2012. Unit volume
decreased 1.5% with 5.0% higher pricing and 2.0% negative foreign exchange.
Excluding divested businesses, Latin America unit volume decreased 1.0%.
Volume gains in Brazil and Central America were offset by volume declines in
Venezuela. Organic sales for Latin America increased 4.0% during the quarter.

Operating profit in Latin America decreased 4% in the fourth quarter of 2012
to $348 million, or 28.5% of Net sales. This decrease in Operating profit was
due to a decrease in Gross profit and an increase in Selling, general and
administrative expenses, both as a percentage of Net sales. This decrease in
Gross profit was due to higher raw and packaging material costs and the
increasingly difficult economic and labor environment in Venezuela, which
likewise impacted unit volume in that country. Increasingly during the
quarter, production at CP Venezuela was negatively impacted by labor issues
that we understand also affected a number of other companies within the
country. The decrease in Gross profit was partially offset by cost savings
from the Company’s funding-the-growth initiatives and higher pricing. This
increase in Selling, general and administrative expenses was primarily due to
higher overhead expenses and higher advertising expenses, both as a percentage
of Net sales. This increase in overhead expenses was mainly due to higher
costs due to inflation, particularly in Venezuela.

Colgate’s strong leadership in oral care throughout Latin America continued
during the quarter with year to date toothpaste market share gains led by
Brazil, Chile, Uruguay and the Dominican Republic. Strong sales of Colgate
Luminous White, Colgate Total Pro Gum Health and Colgate Triple Action Extra
Whitening toothpastes contributed to growth throughout the region. Colgate
strengthened its leadership of the manual toothbrush market throughout the
region, driven by strong sales of Colgate 360° Surround, Colgate 360° Luminous
White and Colgate Triple Action manual toothbrushes. In mouthwash, Colgate’s
year-to-date market share is at a record high in the region with gains driven
by Colgate Luminous White mouthwash and the relaunch of Colgate Plax
mouthwash.

Products in other categories contributing to market share gains included
Protex Men and Palmolive Naturals Pomegranate bar soaps, Speed Stick Naturals
& Protect deodorant and the relaunch of Suavitel Good Bye Ironing fabric
conditioner.

Europe/South Pacific (20% of Company Sales)

Europe/South Pacific Net sales in fourth quarter 2012 were even with the year
ago period. Unit volume increased 2.5% with 1.0% lower pricing and 1.5%
negative foreign exchange. Volume gains in Australia, Denmark and France more
than offset volume declines in Germany and Iberia. Organic sales for
Europe/South Pacific increased 1.5%.

Operating profit in Europe/South Pacific increased 14% in the fourth quarter
of 2012 to $187 million, or 22.1% of Net sales. This increase in Operating
profit was due to an increase in Gross profit and a decrease in Selling,
general and administrative expenses, both as a percentage of Net sales. This
increase in Gross profit was driven by savings from the Company’s
funding-the-growth initiatives, which were partially offset by higher raw and
packaging material costs. This decrease in Selling, general and administrative
expenses was driven by lower overhead expenses.

Colgate strengthened its oral care leadership in the Europe/South Pacific
region with toothpaste share gains led by Germany, Austria, Norway, Czech
Republic, Serbia, Croatia and Bulgaria. Successful premium products driving
share gains include Colgate Total Pro Gum Health, Colgate Sensitive Pro-Relief
Enamel Repair and Colgate Max White One toothpastes. In the manual toothbrush
category, Colgate 360° Max White One and Colgate Total Pro Gum Health manual
toothbrushes contributed to growth throughout the region.

Recent premium innovations contributing to strength in other product
categories include Colgate Total Pro Gum Health and Colgate Sensitive
Pro-Relief mouthwashes, Colgate 360° battery toothbrush, Sanex Zero% shower
gel, Palmolive Ayurituel shower gels and liquid hand soaps inspired by ancient
Indian Ayurvedic rituals and ingredients known traditionally to help restore
the wellbeing of body and mind, Soupline Aroma Sensations fabric conditioner
and Ajax Pure Home liquid cleaner.

Greater Asia/Africa (20% of Company Sales)

Greater Asia/Africa Net sales and unit volume increased 9.0% and 8.0%,
respectively, during fourth quarter 2012. Volume gains were led by India, the
Greater China region, Russia, the Philippines and South Africa. Pricing
increased 2.0% and foreign exchange was negative 1.0%. Organic sales for
Greater Asia/Africa increased 10.0%.

While Operating profit in Greater Asia/Africa increased 6% in the fourth
quarter of 2012 to $215 million, it decreased as a percentage of Net Sales to
24.7%. This decrease in Operating profit as a percentage of Net sales was due
to an increase in Selling, general and administrative expenses as a percentage
of Net sales, which was partially offset by an increase in Gross profit as a
percentage to Net sales.This increase in Gross profit was due to cost savings
from the Company’s funding-the-growth initiatives and higher pricing,
partially offset by higher raw and packaging material costs.This increase in
Selling, general and administrative expenses was driven by higher overhead
expenses due to sales force expansion to support business growth and higher
advertising expenses.

Colgate continued its toothpaste leadership in Greater Asia, driven by market
share gains in India, China, Malaysia, Singapore and Hong Kong. Successful new
products including Colgate Optic White, Colgate Total Pro Gum Health, Darlie
Enamel and Darlie Expert White toothpastes contributed to growth throughout
the region.

Successful products contributing to growth in other categories in the region
include Colgate Slim Soft and Colgate 360° Surround manual toothbrushes,
Colgate Optic White and Colgate Plax Fruity Fresh mouthwashes and Protex for
Men shower gel.

Hill’s Pet Nutrition (13% of Company Sales)

Hill’s Net sales decreased 1.0% during fourth quarter 2012. Unit volume
decreased 2.5%, pricing increased 2.5% and foreign exchange was negative 1.0%.
Volume declines in the U.S., Europe and Japan were partially offset by volume
gains in Brazil and South Africa. Hill’s organic sales were even with the year
ago period.

Hill’s Operating profit decreased 2% in the fourth quarter of 2012 to $149
million, or 26.7% of Net sales.This decrease in Operating profit as a
percentage of Net sales was due to an increase in Selling, general and
administrative expenses as a percentage of Net sales, which was partially
offset by an increase in Gross profit as a percentage to Net sales. This
increase in Gross profit was driven by cost savings from the Company’s
funding-the-growth initiatives and higher pricing, which were partially offset
by higher raw and packaging material costs. This increase in Selling, general
and administrative expenses was primarily due to higher overhead and
advertising expenses.

Recent new product introductions contributing to sales in the U.S. include
Science Diet Ideal Balance canine and feline, which combine natural
ingredients with the power of advanced nutrition in one balanced package,
Science Diet Tender Dinners feline, Prescription Diet i/d Canine Low Fat GI
Restore, specially formulated to help manage gastrointestinal disorders, and
the relaunch of Science Diet Canine with new formulas and improved package
design.

New pet food products contributing to international sales include new flavors
for Prescription Diet i/d, k/d and c/d pouches, the launch of Science Plan and
Science Plan VetEssentials pouches, reformulated Science Plan Puppy Large
Breed, Prescription Diet y/d Feline Thyroid Health, reformulated Science Plan
Adult and Mature Adult Canine and Feline with improved taste and the relaunch
of Science Plan Nature’s Best with upgraded ingredients and package design.

                                     ***

About Colgate-Palmolive: Colgate-Palmolive is a leading global consumer
products company, tightly focused on Oral Care, Personal Care, Home Care and
Pet Nutrition. Colgate sells its products in over 200 countries and
territories around the world under such internationally recognized brand names
as Colgate, Palmolive, Mennen, Speed Stick, Lady Speed Stick, Softsoap, Irish
Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion,
Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s
Prescription Diet. For more information about Colgate’s global business, visit
the Company’s web site at http://www.colgatepalmolive.com. To learn more about
Colgate Bright Smiles, Bright Futures® oral health education program, please
visit http://www.colgatebsbf.com. CL-E

The Company’s annual meeting of shareholders is currently scheduled for
Friday, May 10, 2013.

Substantially all market share data included in this press release is compiled
from data as measured by Nielsen.

Explanatory Note Regarding Currency Neutral Calculations

Diluted earnings per share growth, on a currency neutral basis, for full year
2012 eliminates from Diluted earnings per share growth (GAAP) the impact of
the items described in Table 9 and the period-over-period changes in foreign
exchange rates in the translation of local currency results into U.S. dollars.
Accordingly, for purposes of calculating Diluted earnings per share growth, on
a currency neutral basis, full year 2012 local currency results, which include
the impact of foreign currency transaction gains and losses, are translated
into U.S. dollars using 2011 average foreign exchange rates.

Cautionary Statement on Forward-Looking Statements

This press release and the related webcast (other than historical information)
may contain forward-looking statements. Such statements may relate, for
example, to sales or volume growth, organic sales growth, profit or profit
margin growth, earnings growth, financial goals, the impact of currency
devaluations, exchange controls, price controls and labor unrest, including in
Venezuela, cost-reduction plans including the 2012 Restructuring Program, tax
rates, new product introductions or commercial investment levels. These
statements are made on the basis of our views and assumptions as of this time
and we undertake no obligation to update these statements. We caution
investors that any such forward-looking statements are not guarantees of
future performance and that actual events or results may differ materially
from those statements. Investors should consult the Company’s filings with the
Securities and Exchange Commission (including the information set forth under
the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2011) for information about certain factors that could
cause such differences. Copies of these filings may be obtained upon request
from the Company’s Investor Relations Department or on the Company’s web site
at http://www.colgatepalmolive.com.

Non-GAAP Financial Measures

The following provides information regarding the non-GAAP financial measures
used in this earnings release and/or the related webcast:

To supplement Colgate’s Condensed Consolidated Income Statements presented in
accordance with accounting principles generally accepted in the United States
of America (GAAP), the Company has disclosed non-GAAP measures of operating
results that exclude certain items. Worldwide Gross profit, Gross profit
margin, Selling, general and administrative expenses, Selling, general and
administrative expenses as a percentage of Net sales, Other (income) expense,
net, Operating profit, Operating profit margin, Net income attributable to
Colgate-Palmolive Company and Diluted earnings per common share are discussed
both as reported (on a GAAP basis) and excluding charges resulting from the
implementation of the 2012 Restructuring Program, costs related to the sale of
land in Mexico, costs associated with various business realignment and other
cost-saving initiatives, the gain from the sale of the Company’s non-core
laundry detergent business in Colombia and the charge for a French competition
law matter (non-GAAP). Management believes these non-GAAP financial measures
provide investors with useful supplemental information regarding the
performance of the Company’s ongoing operations. See “Non-GAAP
Reconciliations” for the three and twelve months ended December 31, 2012 and
2011 included with this release for a reconciliation of these financial
measures to the related GAAP measures.

This release discusses organic sales growth, which is Net sales growth
excluding the impact of foreign exchange, acquisitions and divestments.
Management believes this measure provides investors with useful supplemental
information regarding the Company’s underlying sales trends by presenting
sales growth excluding the external factor of foreign exchange as well as the
impact from acquisitions and divestments. See “Geographic Sales Analysis
Percentage Changes” for the three and twelve months ended December 31, 2012 vs
2011 included with this release for a comparison of organic sales growth to
sales growth in accordance with GAAP.

The Company uses these financial measures internally in its budgeting process
and as factors in determining compensation. While the Company believes that
these financial measures are useful in evaluating the Company’s business, this
information should be considered as supplemental in nature and is not meant to
be considered in isolation or as a substitute for the related financial
information prepared in accordance with GAAP. In addition, these non-GAAP
financial measures may not be the same as similar measures presented by other
companies.

The Company defines free cash flow before dividends as net cash provided by
operations less capital expenditures. As management uses this measure to
evaluate the Company’s ability to satisfy current and future obligations,
repurchase stock, pay dividends and fund future business opportunities, the
Company believes that it provides useful information to investors. Free cash
flow before dividends is not a measure of cash available for discretionary
expenditures since the Company has certain non-discretionary obligations such
as debt service that are not deducted from the measure. Free cash flow before
dividends is not a GAAP measurement and may not be comparable to similarly
titled measures reported by other companies. See “Condensed Consolidated
Statements of Cash Flows” for the twelve months ended December 31, 2012 and
2011 for a comparison of free cash flow before dividends to Net cash provided
by operations as reported in accordance with GAAP.

              (See attached tables for fourth quarter results.)

Table 1
                                                                  
Colgate-Palmolive Company
                                                                     
Condensed Consolidated Statements of Income
                                                                     
For the Three Months Ended December 31, 2012 and 2011
                                                                     
(Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                     
                                                         2012        2011
                                                                     
Net sales                                                $ 4,286     $ 4,172
                                                                     
Cost of sales                                              1,781       1,779
                                                                     
Gross profit                                               2,505       2,393
                                                                     
Gross profit margin                                        58.4  %     57.4  %
                                                                     
Selling, general and administrative expenses               1,487       1,444
                                                                     
Other expense, net                                         76          26
                                                                     
Operating profit                                           942         923
                                                                     
Operating profit margin                                    22.0  %     22.1  %
                                                                     
Interest (income) expense, net                             (5    )     15
                                                                     
Income before income taxes                                 947         908
                                                                     
Provision for income taxes                                 311         283
                                                                     
Effective tax rate                                         32.8  %     31.2  %
                                                                     
Net income including noncontrolling interests              636         625
                                                                     
Less: Net income attributable to noncontrolling            38          35
interests
                                                                     
Net income attributable to Colgate-Palmolive Company     $ 598       $ 590
                                                                     
Earnings per common share
Basic                                                    $ 1.27      $ 1.22
Diluted                                                  $ 1.26      $ 1.21
                                                                     
Average common shares outstanding
Basic                                                      472.0       483.8
Diluted                                                    476.0       487.5
                                                                     

Table 2
                                                                 
Colgate-Palmolive Company
                                                                    
Condensed Consolidated Statements of Income
                                                                    
For the Twelve Months Ended December 31, 2012 and 2011
                                                                    
(Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                    
                                                       2012         2011
                                                                    
Net sales                                              $ 17,085     $ 16,734
                                                                    
Cost of sales                                            7,153        7,144
                                                                    
Gross profit                                             9,932        9,590
                                                                    
Gross profit margin                                      58.1   %     57.3   %
                                                                    
Selling, general and administrative expenses             5,930        5,758
                                                                    
Other (income) expense, net                              113          (9     )
                                                                    
Operating profit                                         3,889        3,841
                                                                    
Operating profit margin                                  22.8   %     23.0   %
                                                                    
Interest expense, net                                    15           52
                                                                    
Income before income taxes                               3,874        3,789
                                                                    
Provision for income taxes                               1,243        1,235
                                                                    
Effective tax rate                                       32.1   %     32.6   %
                                                                    
Net income including noncontrolling interests            2,631        2,554
                                                                    
Less: Net income attributable to noncontrolling          159          123
interests
                                                                    
Net income attributable to Colgate-Palmolive Company   $ 2,472      $ 2,431
                                                                    
Earnings per common share
Basic                                                  $ 5.19       $ 4.98
Diluted                                                $ 5.15       $ 4.94
                                                                    
Average common shares outstanding
Basic                                                    476.1        488.3
Diluted                                                  480.1        492.0
                                                                    

Table 3
                                                         
Colgate-Palmolive Company
                                                              
Condensed Consolidated Balance Sheets
                                                              
As of December 31, 2012 and 2011
                                                              
(Dollars in Millions) (Unaudited)
                                                              
                                                              
                                         December 31,         December 31,
                                         2012                 2011
                                                              
  Cash and cash equivalents              $   884              $   878
  Receivables, net                           1,668                1,675
  Inventories                                1,365                1,327
  Other current assets                       639                  522
  Property, plant and equipment,             3,842                3,668
  net
  Other assets, including goodwill          4,996              4,654    
  and intangibles
  Total assets                           $   13,394          $   12,724   
                                                              
  Total debt                             $   5,230            $   4,810
  Other current liabilities                  3,432                3,336
  Other non-current liabilities             2,342              2,037    
  Total liabilities                          11,004               10,183
  Total Colgate-Palmolive Company            2,189                2,375
  shareholders' equity
  Noncontrolling interests                  201                166      
  Total liabilities and                  $   13,394          $   12,724   
  shareholders' equity
                                                              
  Supplemental Balance Sheet
  Information
  Debt less cash, cash equivalents       $   4,230            $   3,860
  and marketable securities*
  Working capital % of sales                 0.7      %           0.7      %
                                                              
* Marketable securities of $116 and $72 as of December 31, 2012 and 2011,
  respectively, are included in Other current assets.
                                    

Table 4
                                                                 
Colgate-Palmolive Company
                                                                    
Condensed Consolidated Statements of Cash Flows
                                                                    
For the Twelve Months Ended December 31, 2012 and 2011
                                                                    
(Dollars in Millions) (Unaudited)
                                                                    
                                                       2012         2011
                                                                    
Operating Activities
Net income including noncontrolling interests          $ 2,631      $ 2,554
Adjustments to reconcile net income including
noncontrolling interests to net cash provided by
operations:
Depreciation and amortization                            425          421
Restructuring and termination benefits, net of cash      35           103
Gain before tax on sales of non-core product lines       -            (207   )
Voluntary benefit plan contributions                     (101   )     (178   )
Stock-based compensation expense                         120          122
Deferred income taxes                                    63           88
Cash effects of changes in:
Receivables                                              19           (130   )
Inventories                                              (21    )     (130   )
Accounts payable and other accruals                      (5     )     199
Other non-current assets and liabilities                30         54     
Net cash provided by operations                          3,196        2,896
                                                                    
Investing Activities
Capital expenditures                                     (565   )     (537   )
Sale of property and non-core product lines              72           263
Purchases of marketable securities and investments       (545   )     (356   )
Proceeds from sale of marketable securities and          147          423
investments
Payment for acquisitions, net of cash acquired           (29    )     (966   )
Other                                                   55         (40    )
Net cash used in investing activities                    (865   )     (1,213 )
                                                                    
Financing Activities
Principal payments on debt                               (5,011 )     (4,429 )
Proceeds from issuance of debt                           5,452        5,843
Dividends paid                                           (1,277 )     (1,203 )
Purchases of treasury shares                             (1,943 )     (1,806 )
Proceeds from exercise of stock options and excess      478        353    
tax benefits
Net cash used in financing activities                    (2,301 )     (1,242 )
                                                                    
Effect of exchange rate changes on Cash and cash        (24    )    (53    )
equivalents
Net increase in Cash and cash equivalents                6            388
Cash and cash equivalents at beginning of period        878        490    
Cash and cash equivalents at end of period             $ 884       $ 878    
                                                                    
Supplemental Cash Flow Information
Free cash flow before dividends (Net cash provided
by operations less capital expenditures)
Net cash provided by operations                        $ 3,196      $ 2,896
Less: Capital expenditures                              (565   )    (537   )
Free cash flow before dividends                        $ 2,631     $ 2,359  
                                                                    
Income taxes paid                                      $ 1,280      $ 1,007
                                                                             

Table 5
                                                               
Colgate-Palmolive Company
                                                                    
Segment Information
                                                                    
For the Three and Twelve Months Ended December 31, 2012 and 2011
                                                                    
(Dollars in Millions) (Unaudited)
                                                                    
                                                                    
                        Three Months Ended             Twelve Months Ended

                        December 31,                   December 31,
                        2012            2011           2012         2011
      Net sales
      Oral, Personal
      and Home Care
                                                                    
      North America     $  786          $  757         $ 3,096      $ 2,995
      Latin America        1,223           1,207         4,907        4,778
      Europe/South         848             847           3,417        3,508
      Pacific
      Greater             870           797         3,505      3,281  
      Asia/Africa
                                                                    
      Total Oral,
      Personal and         3,727           3,608         14,925       14,562
      Home Care
                                                                    
      Pet Nutrition       559           564         2,160      2,172  
                                                                    
      Total Net         $  4,286       $  4,172      $ 17,085    $ 16,734 
      sales
                                                                    
                                                                    
                        Three Months Ended             Twelve Months Ended

                        December 31,                   December 31,
                        2012            2011           2012         2011
      Operating
      profit
      Oral, Personal
      and Home Care
                                                                    
      North America     $  236          $  192         $ 834        $ 791
      Latin America        348             364           1,430        1,414
      Europe/South         187             164           747          715
      Pacific
      Greater             215           203         886        807    
      Asia/Africa
                                                                    
      Total Oral,
      Personal and         986             923           3,897        3,727
      Home Care
                                                                    
      Pet Nutrition        149             152           589          560
      Corporate^(1)       (193   )       (152   )     (597   )    (446   )
                                                                    
      Total
      Operating         $  942         $  923        $ 3,889     $ 3,841  
      profit
                                                                    
      Note:
      Corporate operations include costs related to stock options and
^(1) restricted stock awards, research and development costs, Corporate
      overhead costs, restructuring and related implementation costs and gains
      and losses on sales of non-core product lines and assets.
                                                                    
      Corporate Operating profit for the three months ended December 31, 2012
      includes charges of $89 related to the 2012 Restructuring Program and
      costs of $4 related to the sale of land in Mexico.
                                                                    
      Corporate Operating profit for the twelve months ended December 31, 2012
      includes charges of $89 related to the 2012 Restructuring Program, costs
      of $21 associated with global business realignment and other cost-saving
      initiatives and costs of $24 related to the sale of land in Mexico.
                                                                    
      Corporate Operating profit for the three months ended December 31, 2011
      included costs of $22 associated with global business realignment and
      other cost-saving initiatives, costs of $6 related to the sale of land
      in Mexico and a $21 charge for a competition law matter in France
      related to a divested detergent business.
                                                                    
      Corporate Operating profit for the twelve months ended December 31, 2011
      included a gain on the sale of the Company's non-core laundry detergent
      business in Colombia of $207, costs of $190 associated with global
      business realignment and other cost-saving initiatives, costs of $13
      related to the sale of land in Mexico and a $21 charge for a competition
      law matter in France related to a divested detergent business.
      

Table 6
                                                                             
Colgate-Palmolive Company
                                                                                     
Geographic Sales Analysis Percentage Changes
                                                                                     
For the Three Months Ended December 31, 2012 vs 2011
                                                                                     
(Unaudited)
                                                                                     
                                     COMPONENTS OF SALES CHANGE
                                                                                     
                                                                        Pricing
                                                                        Coupons
                Sales                                                   Consumer &
                Change     Organic   As         Organic   Ex-Divested   Trade        Foreign
                                     Reported
Region          As         Sales     Volume     Volume    Volume        Incentives   Exchange
                Reported   Change
                                                                                     
Total Company   2.5   %    4.0   %   1.5   %    1.5  %    1.5    %      2.5    %     (1.5  )%
                                                                                     
Europe/South    -     %    1.5   %   2.5   %    2.5  %    2.5    %      (1.0   )%    (1.5  )%
Pacific
                                                                                     
Latin America   1.5   %    4.0   %   (1.5  )%   (1.0 )%   (1.0   )%     5.0    %     (2.0  )%
                                                                                     
Greater         9.0   %    10.0  %   8.0   %    8.0  %    8.0    %      2.0    %     (1.0  )%
Asia/Africa
                                                                                     
Total           3.0   %    5.0   %   2.5   %    2.5  %    2.5    %      2.5    %     (2.0  )%
International
                                                                                     
North America   4.0   %    3.5   %   1.5   %    1.5  %    1.5    %      2.0    %     0.5   %
                                                                                     
Total CP        3.5   %    4.5   %   2.0   %    2.0  %    2.0    %      2.5    %     (1.0  )%
Products
                                                                                     
Hill's          (1.0  )%   -     %   (2.5  )%   (2.5 )%   (2.5   )%     2.5    %     (1.0  )%
                                                                                     
                                                                                     
Emerging        4.5   %    6.0   %   2.5   %    2.5  %    2.5    %      3.5    %     (1.5  )%
Markets ^(1)
                                                                                     
Developed       1.0   %    2.0   %   1.0   %    1.0  %    1.0    %      1.0    %     (1.0  )%
Markets
                                                                                     
Notes:
                                                                                     
^(1) Emerging Markets include Latin America, Greater Asia/Africa (excluding Japan) and
Central Europe.


Table 7
                                                                             
Colgate-Palmolive Company
                                                                                     
Geographic Sales Analysis Percentage Changes
                                                                                     
For the Twelve Months Ended December 31, 2012 vs 2011
                                                                                     
(Unaudited)
                                                                                     
                                     COMPONENTS OF SALES CHANGE
                                                                                     
                                                                        Pricing
                                                                        Coupons
                Sales                                                   Consumer &
                Change     Organic   As         Organic   Ex-Divested   Trade        Foreign
                                     Reported
Region          As         Sales     Volume     Volume    Volume        Incentives   Exchange
                Reported   Change
                                                                                     
Total Company   2.0   %    6.0  %    3.0   %    3.0  %    3.5    %      3.0    %     (4.0  )%
^(1) (2)
                                                                                     
Europe/South    (2.5  )%   (0.5 )%   4.0   %    1.0  %    4.0    %      (1.5   )%    (5.0  )%
Pacific ^(1)
                                                                                     
Latin America   2.5   %    10.5 %    2.5   %    4.0  %    4.0    %      6.5    %     (6.5  )%
^ (2)
                                                                                     
Greater
Asia/Africa     7.0   %    11.0 %    7.5   %    7.0  %    7.5    %      4.0    %     (4.5  )%
^(1)
                                                                                     
Total           2.5   %    7.5  %    4.5   %    4.0  %    5.0    %      3.5    %     (5.5  )%
International
                                                                                     
North America   3.5   %    3.5  %    2.0   %    2.0  %    2.0    %      1.5    %     -     %
                                                                                     
Total CP        2.5   %    6.5  %    4.0   %    3.5  %    4.5    %      3.0    %     (4.5  )%
Products
                                                                                     
Hill's          (0.5  )%   1.5  %    (2.5  )%   (2.5 )%   (2.5   )%     4.0    %     (2.0  )%
                                                                                     
                                                                                     
Emerging        4.0   %    10.0 %    4.0   %    5.0  %    5.0    %      5.0    %     (5.0  )%
Markets ^(3)
                                                                                     
Developed       0.5   %    1.5  %    2.0   %    0.5  %    2.0    %      1.0    %     (2.5  )%
Markets
                                                                                     
Notes:
                                                                                     
^(1) The Sanex business was acquired on June 20, 2011.
The impact of the Sanex acquisition on twelve months sales and volume was 0.5% for the Total
Company, 3.0% for Europe/South Pacific and 0.5% for Greater Asia/Africa.
                                                                                     
^(2) The Company's non-core laundry detergent business in Colombia was sold on July 29, 2011.
The impact of the sale of the Company's non-core laundry detergent business in Colombia on
twelve months sales and volume was 0.5% for the Total Company and 1.5% for Latin America.
                                                                                     
^(3) Emerging Markets include Latin America, Greater Asia/Africa (excluding Japan) and
Central Europe.


Table 8
                                                                
Colgate-Palmolive Company
                                                                     
Non-GAAP Reconciliations
                                                                     
For the Three Months Ended December 31, 2012 and 2011
                                                                     
(Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                     
                                                                     
                                                                     
Gross Profit                 2012                 2011
Gross profit, GAAP           $   2,505            $   2,393
2012 Restructuring               2                    -
Program
Costs related to the             4                    -
sale of land in Mexico
Business realignment and
other cost-saving               -                  16      
initiatives
Gross profit, non-GAAP       $   2,511           $   2,409   
                                                                     
                                                                     Basis
                                                                     Point
Gross Profit Margin          2012                 2011               Change
Gross profit margin,             58.4    %            57.4    %      100
GAAP
2012 Restructuring               0.1     %            -
Program
Costs related to the             0.1     %            -
sale of land in Mexico
Business realignment and
other cost-saving               -                  0.3     %      
initiatives
Gross profit margin,            58.6    %           57.7    %      90    
non-GAAP
                                                                     
                                                                     
Selling, General and         2012                 2011
Administrative Expenses
Selling, general and
administrative expenses,     $   1,487            $   1,444
GAAP
2012 Restructuring               (6      )            -
Program
Costs related to the             -                    -
sale of land in Mexico
Business realignment and
other cost-saving               -                  (5      )
initiatives
Selling, general and
administrative expenses,     $   1,481           $   1,439   
non-GAAP
                                                                     
Selling, General and                                                 Basis
Administrative Expenses      2012                 2011               Point
as a Percentage of Net                                               Change
Sales
Selling, general and
administrative expenses          34.7    %            34.6    %      10
as a percentage of Net
sales, GAAP
2012 Restructuring               (0.1    )%           -
Program
Costs related to the             -                    -
sale of land in Mexico
Business realignment and
other cost-saving               -                  (0.1    )%     
initiatives
Selling, general and
administrative expenses         34.6    %           34.5    %      10    
as a percentage of Net
sales, non-GAAP
                                                                     
                                                                     
Other (Income) Expense,      2012                 2011
Net
Other (income) expense,      $   76               $   26
net, GAAP
2012 Restructuring               (81     )            -
Program
Costs related to the             -                    (6      )
sale of land in Mexico
Business realignment and
other cost-saving                -                    (1      )
initiatives
Charge for a French             -                  (21     )
competition law matter
Other (income) expense,      $   (5      )        $   (2      )
net, non-GAAP
                                                                     
                                                                     
Operating Profit             2012                 2011               % Change
Operating profit, GAAP       $   942              $   923            2     %
2012 Restructuring               89                   -
Program
Costs related to the             4                    6
sale of land in Mexico
Business realignment and
other cost-saving                -                    22
initiatives
Charge for a French             -                  21            
competition law matter
Operating profit,            $   1,035           $   972           6     %
non-GAAP
                                                                     
                                                                     Basis
                                                                     Point
Operating Profit Margin      2012                 2011               Change
Operating profit margin,         22.0    %            22.1    %      (10   )
GAAP
2012 Restructuring               2.0     %            -
Program
Costs related to the             0.1     %            0.2     %
sale of land in Mexico
Business realignment and
other cost-saving                -                    0.5     %
initiatives
Charge for a French             -                  0.5     %      
competition law matter
Operating profit margin,        24.1    %           23.3    %      80    
non-GAAP
                                                                     
                                                                     
Net Income Attributable
to Colgate-Palmolive         2012                 2011               % Change
Company
Net income attributable
to Colgate-Palmolive         $   598              $   590            1     %
Company, GAAP
2012 Restructuring               70                   -
Program
Costs related to the             3                    4
sale of land in Mexico
Business realignment and
other cost-saving                -                    19
initiatives
Charge for a French             -                  21            
competition law matter
Net income attributable
to Colgate-Palmolive         $   671             $   634           6     %
Company, non-GAAP
                                                                     
                                                                     
Earnings Per Common          2012                 2011               % Change
Share, Diluted ^ (1)
Earnings per common          $   1.26             $   1.21           4     %
share, diluted, GAAP
2012 Restructuring               0.14                 -
Program
Costs related to the             0.01                 0.01
sale of land in Mexico
Business realignment and
other cost-saving                -                    0.04
initiatives
Charge for a French             -                  0.04          
competition law matter
Earnings per common          $   1.41            $   1.30          8     %
share, diluted, non-GAAP
                                                                     
^(1) The impact of non-GAAP adjustments on the diluted earnings per share may
not necessarily equal the difference between "GAAP" and "non-GAAP" as a result
of rounding.


Table 9
                                                                
Colgate-Palmolive Company
                                                                     
Non-GAAP Reconciliations
                                                                     
For the Twelve Months Ended December 31, 2012 and 2011
                                                                     
(Dollars in Millions Except Per Share Amounts) (Unaudited)
                                                                     
                                                                     
                                                                     
Gross Profit                 2012                 2011
Gross profit, GAAP           $   9,932            $   9,590
2012 Restructuring               2                    -
Program
Costs related to the             24                   -
sale of land in Mexico
Business realignment and
other cost-saving               5                  44      
initiatives
Gross profit, non-GAAP       $   9,963           $   9,634   
                                                                     
                                                                     Basis
                                                                     Point
Gross Profit Margin          2012                 2011               Change
Gross profit margin,             58.1    %            57.3    %      80
GAAP
2012 Restructuring               -                    -
Program
Costs related to the             0.2     %            -
sale of land in Mexico
Business realignment and
other cost-saving               -                  0.3     %      
initiatives
Gross profit margin,            58.3    %           57.6    %      70    
non-GAAP
                                                                     
                                                                     
Selling, General and         2012                 2011
Administrative Expenses
Selling, general and
administrative expenses,     $   5,930            $   5,758
GAAP
2012 Restructuring               (6      )            -
Program
Costs related to the             -                    -
sale of land in Mexico
Business realignment and
other cost-saving               (14     )           (10     )
initiatives
Selling, general and
administrative expenses,     $   5,910           $   5,748   
non-GAAP
                                                                     
Selling, General and                                                 Basis
Administrative Expenses      2012                 2011               Point
as a Percentage of Net                                               Change
Sales
Selling, general and
administrative expenses          34.7    %            34.4    %      30
as a percentage of Net
sales, GAAP
2012 Restructuring               -                    -
Program
Costs related to the             -                    -
sale of land in Mexico
Business realignment and
other cost-saving               (0.1    )%          (0.1    )%     
initiatives
Selling, general and
administrative expenses         34.6    %           34.3    %      30    
as a percentage of Net
sales, non-GAAP
                                                                     
                                                                     
Other (Income) Expense,      2012                 2011
Net
Other (income) expense,      $   113              $   (9      )
net, GAAP
2012 Restructuring               (81     )            -
Program
Costs related to the             -                    (13     )
sale of land in Mexico
Business realignment and
other cost-saving                (2      )            (136    )
initiatives
Gain on sale of non-core
laundry detergent                -                    207
business in Colombia
Charge for a French             -                  (21     )
competition law matter
Other (income) expense,      $   30              $   28      
net, non-GAAP
                                                                     
                                                                     
Operating Profit             2012                 2011               % Change
Operating profit, GAAP       $   3,889            $   3,841          1     %
2012 Restructuring               89                   -
Program
Costs related to the             24                   13
sale of land in Mexico
Business realignment and
other cost-saving                21                   190
initiatives
Gain on sale of non-core
laundry detergent                -                    (207    )
business in Colombia
Charge for a French             -                  21            
competition law matter
Operating profit,            $   4,023           $   3,858         4     %
non-GAAP
                                                                     
                                                                     Basis
                                                                     Point
Operating Profit Margin      2012                 2011               Change
Operating profit margin,         22.8    %            23.0    %      (20   )
GAAP
2012 Restructuring               0.5     %            -
Program
Costs related to the             0.1     %            0.1     %
sale of land in Mexico
Business realignment and
other cost-saving                0.1     %            1.1     %
initiatives
Gain on sale of non-core
laundry detergent                -                    (1.2    )%
business in Colombia
Charge for a French             -                  0.1     %      
competition law matter
Operating profit margin,        23.5    %           23.1    %      40    
non-GAAP
                                                                     
                                                                     
Net Income Attributable
to Colgate-Palmolive         2012                 2011               % Change
Company
Net income attributable
to Colgate-Palmolive         $   2,472            $   2,431          2     %
Company, GAAP
2012 Restructuring               70                   -
Program
Costs related to the             18                   9
sale of land in Mexico
Business realignment and
other cost-saving                14                   147
initiatives
Gain on sale of non-core
laundry detergent                -                    (135    )
business in Colombia
Charge for a French             -                  21            
competition law matter
Net income attributable
to Colgate-Palmolive         $   2,574           $   2,473         4     %
Company, non-GAAP
                                                                     
                                                                     
Earnings Per Common          2012                 2011               % Change
Share, Diluted ^ (1)
Earnings per common          $   5.15             $   4.94           4     %
share, diluted, GAAP
2012 Restructuring               0.14                 -
Program
Costs related to the             0.04                 0.02
sale of land in Mexico
Business realignment and
other cost-saving                0.03                 0.30
initiatives
Gain on sale of non-core
laundry detergent                -                    (0.27   )
business in Colombia
Charge for a French             -                  0.04          
competition law matter
Earnings per common          $   5.36            $   5.03          7     %
share, diluted, non-GAAP
                                                                     
^(1) The impact of non-GAAP adjustments on the diluted earnings per share may
not necessarily equal the difference between "GAAP" and "non-GAAP" as a result
of rounding.

Contact:

Colgate-Palmolive Company
Bina Thompson, 212-310-3072
Hope Spiller, 212-310-2291
 
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