UNILEVER SECOND-QUARTER PROFIT DOWN 17 PER CENT

       Unilever, the maker of Dove soap, Lipton tea and Ben & Jrrry's ice cream, reported yesterday that profit fell 17 per cent in the second quarter as its profit margins eroded amid the economic downturn.
       Net profit at the consumer products giant was euro758 million (Bt37.1 billion) in the quarter, down from euro909 million in the same period a year earlier, while sales rose 1 per cent to euro10.5 billion.
       The sales figure was in line with analysts' expectations.
       Unilever didn't specify why its margins slid, but noted it had spent more money on advertising and suffered from higher commodity costs. Profit was also hit by euro77 million more in pension-related costs than a year earlier.
       "While conditions remain difficult in many markets, I am encouraged by the return to volume growth across all regions," chief executive Paul Polman said in a statement.
       Sales were up 6.6 per cent in Asia and Africa, now Unilever's largest market, 0.6 per cent in the Americas, but fell 5.1 per cent in Western Europe. Operating profits were up by 18 per cent in Asia, but fell by1 per cent in the Americas and 24 per cent in Western Europe.
       "Unilever is delivering on its promise of a return to volume growth, which has come much quicker than we anticipated," said analyst Richard Withagen of SNS Securities, who has a "reduce" rating the share. He said volume growth hadn't translated to profits due to pricing weakness but "we see this as a solid performance".
       Shares rose 4.3 per cent to euro19.61 in Amsterdam.
       Among product lines, at Univlever's savoury and dressings arm, its largest, sales fell 5.8 per cent and operating profits were down 18 per cent.
       Unilever said its Knorr soups brand had grown well in the Americas and Asia but that sales were down in Western Europe.
       Overall in the US, Unilever said it had capitalised on the move to more in-home eating with successful campaigns behind Hellmann's mayonnaise, Ragu pasta sauces and Bertolli frozen meals.
       Unilever's personal-care arm sales grew by 8.5 per cent and operating profit rose 6 per cent. Unilever said new product launches had helped, such as a new Dove deodorant and the Axe body spray. It also noted good growth for Suave, its value brand in the US. Ice cream and drinks sales rose 3.8 per cent but operating profits fell 8.4 per cent. Unilever didn't say why.