Reckitt & Coleman's Profit Meets Forecasts, Rising 10%
May 12, 2011
LONDON -- Consumer-goods manufacturer Reckitt & Coleman barely met its target for profit growth in the first half and said sales growth hasn't met expectations. The company reported first-half pretax profit rose 10% to 165 million pounds from 149.6 million pounds ($257.3 million from $233.3 million) a year earlier. Sales rose 4% to 1.16 billion pounds from 1.11 billion pounds ($1.81 billion from $1.73 billion). The company, whose products include cleansers and pharmaceuticals, said it completed its disposal program on schedule, bringing in 400 million pounds in less than two years. First-half performance began to bear out Reckitt & Colman's strategy to refocus its business on leading household and drug brands, the company said, but sales growth remains sluggish in some countries, notably European markets. First-half sales in Europe rose only marginally to 402 million pounds from 392 million pounds, with a rise in operating profit for this sector to 73 million pounds from 71 million pounds. Pharmaceuticals performed best in Europe, with sales rising 6.6%. North American business looked better. Sales were up 7% in the half to 374 million pounds, with operating profit rising to 53 million pounds from 39 million pounds.
