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                                                              Chapter One | Overview of Financial Statement Analysis  5


                       Colgate’s Operating Divisions: Oral, Personal, and Home Care               Exhibit 1.1


                                                                      ($ MILLION)
                                                       Net              Operating          Total
                                                       Sales             Profit           Assets
                       North America*  . . . . . . . . . . . . . . . . . . . . . . . .  $ 2,591  $ 550  $2,006
                       Latin America  . . . . . . . . . . . . . . . . . . . . . . . . .  3,020  873  2,344
                       Europe/South Pacific  . . . . . . . . . . . . . . . . . . . .  2,952  681  2,484
                       Greater/South Pacific . . . . . . . . . . . . . . . . . . . .  2,006  279  1,505
                       Total oral, personal, home care . . . . . . . . . . . $10,569  $2,383  $8,339
                              †
                       Pet nutrition  . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,669  $ 448  $ 647
                       Total operating divisions  . . . . . . . . . . . . . . . . $12,238  $2,831  $8,986
                       Corporate . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  N/A  ($ 670)  $ 152
                       Total for company . . . . . . . . . . . . . . . . . . . . . . $12,238  $2,161  $9,138
                       *North America net sales in the United States for oral, personal, and home care were $2,211, $2,124, and $2,000 in 2006, 2005,
                       and 2004, respectively.
                       † Net sales in the United States for pet nutrition were $898, $818, and $781 in 2006, 2005, and 2004, respectively.





                       Colgate Stock Price Growth versus S&P Growth                               Exhibit 1.2

                         100
                                                                            Colgate
                          80                                                S&P 500
                        Percent Growth  60
                          40
                          20
                           0
                          20
                               1998  1999   2000   2001  2002   2003  2004   2005   2006  2007



                       sword: while reducing sales volatility, it also fosters fierce competition for market share.
                       Colgate has been able to thrive in this competitive environment by following a carefully
                       defined business strategy that develops and increases market leadership positions in cer-
                       tain key product categories and markets that are consistent with the company’s core
                       strengths and competencies and through relentless innovation. For example, the com-
                       pany uses its valuable consumer insights to develop successful new products regionally,
                       which are then rolled out on a global basis. Colgate also focuses on areas of the world
                       where economic development and increasing consumer spending provides opportuni-
                       ties for growth. Despite these strategic overtures, Colgate’s profit margins are continu-
                       ously squeezed by competition. The company was thus forced to initiate a major
                       restructuring program in 2004 to reduce costs by trimming its workforce by 12% and
                       shedding several unprofitable product lines.
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