Boston-basted Gillette Co., the world’s
largest maker of razors, said first-quarter earnings jumped 23
percent because of reduced costs and the biggest sales increase in
more than five years.
Net income for the maker of Duracell batteries and Braun
appliances rose to $223 million, or 21 cents a share, from $182
million, or 17 cents, a year earlier, the company said. Sales rose
6.8 percent to $1.73 billion from $1.62 billion. Analysts had
forecast an increase of 1 percent to 3 percent.
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Chief Executive James Kilts, who took over 14 months ago,
eliminated 3,700 jobs, closed six plants and reduced debt by more
than $1 billion. Kilts put more money into advertising and new
products, including a redesign of Gillette’s four-year-old men’s
razor. Retail sales from the Mach3 line rose about 20 percent in
the first quarter.
A 24 percent increase in profit from razors and blades and
lower interest expense helped earnings even as Duracell,
Gillette’s second-largest business, had an unexpected loss.
Earnings were 2 cents higher than the 19-cent average estimate of
analysts surveyed by Thomson Financial/First Call.
Bloomberg News
