Hill's (13% of Company Sales)

Hill's sales grew 13.0% during the quarter as unit volume decreased 4.0%, pricing increased 15.0% and foreign exchange added 2.0%. Volume growth in Japan, Australia, Russia, Brazil, Romania, Mexico, Czech Republic, Chile, Hong Kong and Thailand during the quarter was offset by volume declines in the U.S. and Western Europe primarily due to timing differences of price increases taken in 2008 and 2007. Operating profit increased 14% to a record level even after significantly higher agricultural commodity costs during the quarter.

New products contributing to sales in the U.S. specialty channel include Science Diet Canine and Feline Nature's Best, Science Diet Tender Chunks in Gravy Feline pouches and Science Diet Adult High Energy Canine. Prescription Diet Hypo Allergenic Canine and Feline treats contributed to sales in the U.S. veterinary channel.

New pet food products contributing to international sales include Science Plan Canine and Feline Nature's Best, Prescription Diet Canine w/d, r/d and j/d Reduced Calorie and Prescription Diet Hypo Allergenic Canine treats.

Hill's Pet Nutrition increased its profits this year, despite higher expenses related to escalating commodity prices, the company said Thursday.

When commodity prices spiked earlier this year, Hill's was able to pass on the costs to consumers by raising prices.

Hill's sales grew 13 percent during the quarter ended Sept. 30 as unit volume decreased 4 percent, pricing increased 15 percent and foreign exchange added 2 percent, according to financial statements released Thursday by its parent company, Colgate-Palmolive.

Hill's, which has 884 employees in Shawnee County, is on track to post more than $2 billion in sales this year. Its sales in the quarter were $523.6 million, compared to $464.3 million in same quarter in 2007.

Sales in the nine months ended Sept. 30 were up 16 percent to $1.57 billion, compared to $1.35 billion sales in the first nine months of 2007.

Operating profit for Hill's was $133.3 million in the third quarter, compared with $116.9 million profit in third quarter 2007.

Hill's operating profit for nine months ended Sept. 30 was $390.6 million, compared with $354.5 million in the first nine months of 2007.

As a result of a limited voluntary recall of Hill's product in March 2007, sales for the nine months ended Sept. 30, 2007, were reduced by $2.1 million and corporate operating expenses increased by $13.6 million.

The company said volume growth in Japan, Australia, Russia, Brazil, Romania, Mexico, Czech Republic, Chile, Hong Kong and Thailand during the quarter was offset by volume declines in the United States and Western Europe. Operating profit increased 14 percent to a record level even after significantly higher agricultural commodity costs during the quarter, the company said.

New products contributing to sales in the U.S. specialty channel include Science Diet Canine and Feline Nature's Best, Science Diet Tender Chunks in Gravy Feline pouches and Science Diet Adult High Energy Canine. Prescription Diet Hypo Allergenic Canine and Feline treats contributed to sales in the U.S. veterinary channel.

New pet food products contributing to international sales include Science Plan Canine and Feline Nature's Best, Prescription Diet Canine w/d, r/d and j/d Reduced Calorie and Prescription Diet Hypo Allergenic Canine treats.

Colgate-Palmolive beat expectations with its quarterly profit on Thursday and gave a positive forecast through next year.

Colgate said its third-quarter profit rose to $499.9 million, or 94 cents per share, from $420.1 million, or 77 cents per share, a year ago.

Stock in Colgate-Palmolive (NYSE: CL) rose 7 percent to close at $64.23 per share Thursday.

Michael Hooper can be reached at (785) 295-1293 or michael.hooper@cjonline.com.