Colgate-Palmolive Co. swung to a loss in its latest quarter as the consumer-products company took hits from an accounting change and the strong U.S. dollar.

Macroeconomic conditions and foreign exchange volatility remain challenging, Chief Executive Ian Cook said Friday, adding that Colgate sees a low single-digit decline in earnings per share this year. Analysts have been expecting adjusted earnings this year to rise to $2.94 a share from $2.81 in 2015.

The maker of its namesake toothpaste, Palmolive dishsoap and Lady Speed Stick deodorant said during the fourth quarter it changed the way it accounts for its Venezuelan operations in the face of "a significant decrease in the availability of U.S. dollars together with other government controls that the Company expects to continue for the foreseeable future." The move resulted in a charge of $1.18 a share in the fourth quarter.

The New York company does most of its business abroad, and a strong dollar has made products more expensive to customers paying in foreign currencies. The impact of adverse exchange rates lopped 11.5% off its top line in the fourth quarter. Stripping out currency fluctuations, sales rose across the company's geographic segments.

Amid continuing dollar pressure, Colgate has raised prices in recent quarters in an attempt to support profit. The company lifted prices 4% in the December period. In addition to raising prices, the company has moved to cut costs and brought overhead expenses down 10% in the December quarter. Colgate managed to lift its gross profit margin to 58.8% from 58.6% a year earlier.

Overall, Colgate reported a loss of $458 million, or 51 cents a share, down from a profit of $628 million, or 68 cents, a year earlier. Excluding the aforementioned accounting change, among other items, Colgate reported 73 cents in earnings a share, down from 76 cents a year earlier.

Revenue declined 7.6% to $3.90 billion. Analysts projected 72 cents in adjusted earnings a share and $3.93 billion in sales, according to Thomson Reuters.

Shares in the company, down 5.5% over the past three months through Thursday's close, were inactive premarket.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

January 29, 2016 08:15 ET (13:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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