UPDATE 3-Colgate sees earnings growth slowing in 2011

* Sees 2011 EPS growth slowing to mid-single digits

* Q3 EPS $1.21 vs Wall Street view $1.19

* Revenue down 1.4 percent

* Shares off 0.7 percent
(Adds analyst comments, byline, previous CHICAGO)

By Jon Lentz

NEW YORK, Oct 28 (BestGrowthStock) – Colgate-Palmolive (CL.N: ) said
2011 earnings-per-share growth would slow to mid-single digits
as it spends more on advertising and new product development to
help lift sales volume and market share.

The maker of Colgate toothpaste and other personal-care
items said third-quarter sales fell 1.4 percent to $3.94
billion as pricing was flat and foreign exchange rates cut 4.5
percentage points from sales growth.

Analysts on average expected $4.03 billion, according to
Thomson Reuters I/B/E/S.

Consumer goods makers have faced greater competition from
private-label store brands as shoppers remain budget-conscious.
That has put pressure on prices even while costs for materials
to make their products have risen.

Colgate said it expected 2011 earnings per share to rise at
a mid-single-digit percentage rate, down from the double-digit
increase it expects in 2010, which excludes a one-time charge.

“I think they did the right thing in terms of taking the
expectations down for next year and reinvesting in the business
at a rate that will improve or benefit the long-term health of
the brands of the business,” said Mark Astrachan, an analyst
with Stifel Nicolaus.

Net income was $645 million, or $1.21 a share, up from
$617 million, or $1.12 a share, a year earlier. Analysts
polled by Thomson Reuters I/B/E/S had expected a profit of
$1.19 a share.

The company attributed higher profits to effective
cost-cutting.

On Wednesday. larger rival Procter & Gamble Co (PG.N: ) also
beat analyst estimates. It cited the strength of its new
products and overseas sales. [ID:nN27198603]

Earlier this week, sluggish sales and higher spending hit
another rival, Kimberly-Clark Corp [nN26284542]

Victoria Collin, an analyst with Atlantic Equities, said it
is hard to draw conclusions about the consumer packaged goods
companies since they have different product portfolios.

What the results do show is that growth is being driven by
emerging markets such as Latin America, Collin said, while
developed markets are still facing difficulties.

Colgate also reported that the U.S. market is looking
better than Europe, Collin noted.

Colgate shares were down 0.7 percent at $74.98 in afternoon
trading on the New York Stock Exchange.
(Reporting by Brad Dorfman and Jon Lentz; Editing by Lisa Von
Ahn, Maureen Bavdek, Dave Zimmerman)

UPDATE 3-Colgate sees earnings growth slowing in 2011