Dow Jones Newswires | Alberto-Culver Co.’s fiscal first-quarter earnings rose 16 percent amid
lower commodity costs, although the maker of hair-care and personal
products said the hair-care business remains weak.

The company also raised its quarterly dividend 13 percent to 8.5 cents a share.

President and Chief Executive James Marino said, “While the hair-care
category remains soft, trends are slowly beginning to improve and we
continue to gain market share. Sales growth was particularly strong in
our international segment, even with a very strong performance in the
prior year quarter.”

Alberto-Culver has benefited from its Noxzema acquisition and its
portfolio of low-priced staples, but faces pressure from heightened
promotions by bigger rivals Procter & Gamble Co. and Unilever PLC. The company in October predicted that any recovery in consumer spending will be slow, particularly for premium products.

For the quarter ended Dec. 31, Alberto-Culver reported a profit of
$36.6 million, or 37 cents a share, up from $31.7 million, or 32 cents
a share, a year earlier. Excluding items such as restructuring costs,
earnings from continuing operations rose to 46 cents from 41 cents.

Net sales increased 2.96 percent to $363 million. Excluding
acquisitions, divestitures and currency fluctuations, sales were flat.

Analysts polled by Thomson Reuters most recently forecast earnings of 43 cents on revenue of $371 million.

Gross margin rose to 53.46 percent from 51.66 percent on lower commodities costs.

Revenue declined 2.5 6 percent in the U.S. despite the market-share
gains and strength from the Tresemme brand, but rose 126 percent
internationally.

Shares closed Friday at $28.39 and didn’t trade premarket.

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Greg Burns on why Alberto-Culver is not on the verge of being acquired.