Colgate, American Brands Post Profit Gains for 2nd-Qtr
Undated (AP) _ American Brands Inc. said Thursday its second-quarter profit climbed 44 percent, while another consumer products company, Colgate-Palmolive Co., said its earnings rose 17 percent in the period compared with a year ago.
Both companies cited sales boosts from overseas operations.
American Brands, headquartered in Old Greenwich, Conn., said its net income for the quarter ended June 30 soared 44 percent to $154.6 million, or $1.57 a share, from $107.4 million, or 94 cents a share, in the year-ago period.
Revenue jumped 27 percent to $2.49 billion from $1.96 billion in the second quarter of 1987. The figures include subsidiaries purchased from E-II Holdings Inc. in February in a deal valued at $2.7 billion.
William J. Alley, chairman and chief executive officer, said all products lines generated higher sales. He also noted the company is continuing its restructuring program.
″Since May 1987, we have invested nearly $2 billion in strategic acquisitions and we are continuing to divest businesses which do not fit our plans or meet expectations,″ he said.
Last month the company said it would sell a number of the E-II operations it acquired to Riklis Family Corp.
Among the company’s core businesses, tobacco and distilled spirits put in a strong performance. Sales in the hardware, home and office products unit more than doubled, partly because of acquisitions.
For the year’s first half, the company reported net income of $305 million, or $2.97 a share, up 28 percent from $238.2 million, or $2.09 a share, in the year-ago period. Revenue totaled $5.40 billion, up 29 percent from $4.18 billion in the first half of 1987.
American Brands’ core businesses include tobacco, distilled spirits and financial services. Among its main brands are Lucky Strike and Pall Mall cigarettes, Jim Beam bourbon and Gilbey’s gin.
Colgate-Palmolive, maker of soaps, toilet and health care products and pet food, reported net income of $65.5 million, or 96 cents a share, up 17 percent from $56.1 million, or 82 cents a share, in the second quarter of 1987.
Sales for the New York-based Colgate totaled $1.19 billion, up 9 percent from $1.09 billion a year ago.
Reuben Mark, chairman, president and chief executive officer, said the company’s strategy is to ″focus on growth opportunities within our core global consumer businesses and to reduce overhead while maintaining a controlled pace of volume growth.″
The company noted that profits from its household and personal care operations showed strong gains overseas. Specialty marketing sales were boosted by increased sales at Hill’s Pet Products, which recently began advertising nationally.
For the first six months, net income rose 16 percent to $130.9 million, or $1.91 a share, from $112.5 million, or $1.62 a share in the year-ago period. Revenue totaled $2.33 billion, up 12 percent from $2.08 billion in the first half of 1987.