How has Colgate been able to achieve record results year after year?
A. Reuben Mark: Colgate is continuing its record of strong performance through an absolute focus on identifying strategic priorities and executing them quickly and as perfectly as possible. Colgate’s strategy includes a strict financial discipline with emphasis on reducing costs and constantly improving how we utilize our assets around the globe. The savings generated fund a multitude of growth-building activities including advertising and promotional support behind a constant stream of innovative new products. As a result, Colgate ended 2001 with the highest ever gross profit margin, operating profit margin, net income, earnings per share and return on capital. Additionally, Colgate’s growing profitability and strong cash generation led our Board of Directors to authorize a 14 percent dividend increase in July 2001.
