The company raised its quarterly dividend 15

Earnings from continuing operations 41 cents/share Stocks Sales up 2.8 percent Raises quarterly dividend by a penny to 7.5 cents/share Shares up 3.25 percent (Adds share move, CEO and analyst comments, details, byline) By Aarthi Sivaraman NEW YORK, Jan 26 (Reuters) - Alberto Culver Co (ACV.N)posted better-than-expected quarterly profit Monday on strongsales of its TRESemme and Nexxus hair-care products, and thecompany raised its quarterly dividend. Alberto, whose shares were up 3.25 percent, stands to gainfrom consumers trading down in tough times, because some of itsproduct lines are less expensive than those of rivals such asProcter & Gamble (PG.N) and L'Oreal (OREP.PA). Net profit rose to $31.7 million, or 32 cents per share,for the fiscal first quarter that ended Dec. 31, from $30.9million, or 31 cents per share, a year earlier.

Earnings from continuing operations, excludingrestructuring and tax items, were 41 cents per share. On thatbasis, analysts' average forecast was 34 cents, according toReuters Estimates. Analysts were focused on continuing operations since thecompany sold its Cederroth household and first aid productsunit to Nordic private equity firm CapMan last July. Quarterly sales rose 2.8 percent to $352.8 million.Excluding the impact of foreign exchange and the acquisition ofthe Noxzema brand, sales rose 9.5 percent. BMO Capital Markets analyst Connie Maneaty cautioned thatwhile its sales growth was impressive, part of it appearedrelated to timing, as the company plans to invest more inadvertising in subsequent quarters.

Alberto, whose brands also include Alberto VO5 and St.Ives, added the Noxzema brand to its line-up last year toattract shoppers visiting retailers such as Wal-Mart Stores Inc(WMT.N) for lower-cost personal-care products. CONSUMERS TRADING DOWN In the past year, recession-hit consumers have gravitatedto discounters and wholesale clubs to conserve cash as theyface job losses, weak home values and tighter access tocredit. While consumer cutbacks have hurt many companies, Alberto'sbrands, which span a range of prices, have been relativelyshielded, Chief Executive James Marino said on a conferencecall. The company raised its quarterly dividend 15.4 percent to7.5 cents per share. Alberto expects higher ingredient costs to hurt resultsthrough the first half of its fiscal year on a pretax basis. Itexpects currency rates to hurt pretax growth throughout theyear, Marino said.