Colgate-Palmolive Co. Tuesday announced the restructuring plan that will involve a 12% cut of its 37,000 workforce from the closure of 78 factories worldwide, and cost the toothpaste and consumer-products maker between $550 million and $650 million. In 2004 fourth quarter Colgate is already taking a $45 million restructuring charge, to be followed by after-tax charges of $200 million in 2005.

Colgate anticipates getting $45 million in after-tax savings from the project. The plan consists of 100 initiatives aimed at the consolidation of business functions.

"We have already indicated that our [earnings-per-share] growth in 2005 should be in the 6%-10% range," said Chairman and Chief Executive Reuben Mark. "With the benefit of this program on both top and bottom lines, earnings per share, excluding restructuring charges, is expected to increase at low double-digit rates in 2006 and beyond," he said.