COLGATE TO ROLL OUT NEW PRODUCTS, BOOST AD SPENDING

Reports Flat Sales for First Quarter

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NEW YORK (AdAge.com) -- Colgate-Palmolive Co. posted an 8% increase in net income, which the company attributed partly to increased advertising and new products driving up market share worldwide.

The company reported net income of $289.7 million for the quarter, up from $267.9 million, and revenue of $2.2 billion, flat from the same period in 2001.

Analysts were

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disappointed by the flat sales, and J.P. Morgan and Merrill Lynch downgraded the stock after the announcement.

Chairman-CEO Reuben Mark said the company expects to show accelerated sales growth in the second half, when it plans to launch approximately 20 new products, including new product lines and line extensions.

He did not identify the products, saying they have not been introduced to merchants yet.

Additionally, Colgate will benefit from increased advertising. Mr. Mark said ad spending as a percent of sales has remained stable, in the mid-5% range, but that the spending buys more in the current cheaper media market.

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