Summary Box: Colgate raises Latin America prices

AP News
Posted: Jul 28, 2011 2:00 PM
Summary Box: Colgate raises Latin America prices

THE NEWS: Colgate-Palmolive Co., best known for toothpaste and dish soap, said Thursday that second-quarter net income rose 3 percent and revenue rose 10 percent. Results were fueled by strength in Latin America.

THE FALLOUT: Colgate was able to raise prices in Latin America, which will help it deal with the higher costs it has to pay for raw materials. It lowered prices in North America, where customers are more recession-weary, by offering sales. But it said it expects to raise U.S. prices in the second half of this year by enticing customers to buy higher-end products.

THE BIG PICTURE: Many companies are raising prices on customers and saying they have no choice because they are paying more for raw materials. Some, like Colgate, have focused their price increases on overseas markets, where customers are arguably better able to absorb the extra expense.