Colgate-Palmolive 3Q profit up on higher prices

By the Associated Press | October 27, 2011 | 7:35 AM EDT

FILE - This Jan. 26, 2011 file photo, a bottle of Palmolive dish liquid is shelved at a local Target store, in Phoenix. _ Colgate-Palmolive Co.'s net income rose 4 percent in the third quarter, helped by higher pricing, cost control efforts and strong sales in emerging markets. (AP Photo/Ross D. Franklin, File)

NEW YORK (AP) — Colgate-Palmolive says its net income rose 4 percent in the third quarter thanks to higher prices, cost controls and strong sales in emerging markets.

However, the consumer products company said Thursday that its quarterly gross profit margin dropped because of increased raw and packaging material costs. Colgate-Palmolive Co. expects full-year gross profit margin to fall this year. The company still expects to meet its earnings per share forecast for the year and foresees a double-digit earnings per share increase in 2012.

The New York company earned $643 million, or $1.31 per share, for the period ended Sept. 30. That's up from $619 million, or $1.21 per share, a year earlier.

Analysts forecast earnings of $1.30 per share.

Revenue climbed 11 percent to $4.38 billion, topping Wall Street's $4.36 billion estimate.