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Toothpaste maker Colgate-Palmolive is to cut 4,440 jobs and shut a third of its 78 factories worldwide in a bid to boost profits.

The US firm said the move - which will affect 12% of staff - is expected to lead to annual savings of $250-$300m (￡128m-￡154m) after four years.

The restructuring will cost the firm $550m-$650m in charges over the period.

Colgate added that fourth quarter and 2005 profits, excluding the charges, will match expectations.

Colgate's last quarter recorded the first drop in quarterly profit in eight years after chairman and chief executive Reuben Mark spent more on marketing to fend off Procter & Gamble, the maker of rival toothpaste Crest.

The company is now focusing on cutting costs to enable it to spend more on product and marketing innovation.

It aims to make savings by purchasing all goods and services, including office supplies and advertising, globally, thus gaining benefits from buying in bulk.

Shares in US-based Colgate rose more than 5% to $48.99 in Tuesday afternoon trading in the US.

The company sees particular potential for its products, which also include Palmolive washing up liquid and Ajax cleaner, in emerging markets like Eastern Europe, Russia, China and parts of Latin America and Asia.

It has yet to disclose which of its factories will be affected by the closures.

(Agencies)

fend off: prevent the occurrence of; prevent from happening（擋開(kāi)，避開(kāi)）