BOSTON – The Gillette Co. says its first-quarter net profits were up 19 percent over last year, fueled by strong sales of Mach3 razors and Duracell batteries. Net income increased to $449 million, or 45 cents a share, from $376 million, or 37 cents, a year earlier, the company said in a statement. Sales rose 17 percent to $2.61 billion.
Gillette, the world’s largest razor maker, is being acquired by Procter & Gamble, the largest U.S. household goods maker, for about $57 billion. The deal, announced in January, is expected to be completed in the second half of this year, both companies have said.
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The combined company will gain leverage for shelf space at retailers such as Wal-Mart Stores Inc., which accounted for 13 percent of Gillette’s sales last year.
Fredric Russell, chairman of Fredric E. Russell Investment Management, in Tulsa, Okla., said Gillette’s dominance in razors is rising, and credited the company’s introduction of “a lot of new products.”
Gillette has expanded the battery-powered M3Power razor to countries including Italy and Sweden and added versions such as the M3Power Nitro in the United States. The company has also cut costs to counter rising raw materials prices and spent on marketing and advertising to maintain Gillette’s global lead over Energizer Holdings Inc.’s Schick razors. (Bloomberg News)
Insurance intoxication clauses to be banned
PROVIDENCE – The state Senate and House of Representatives have both passed bills forbidding clauses in health insurance policies that exempt the carrier from liability for injuries a person sustains while intoxicated or under the influence of narcotics.
The legislation would apply to any “medical expense policy,” meaning an accident and sickness policy that provides hospital, medical or surgical expense coverage. The bills were sponsored by senators William A. Walaska (D-Warwick) and David E. Bates (R-Barrington) and representatives Steven M. Costantino and Thomas C. Slater (both D-Providence).
State law limits policy exclusions to those specifically outlined in the law, with prescribed language that insurers may only alter with regulators’ permission, and never in such a way that their subscribers’ rights would be further reduced.
Under current law, insurers are allowed to exclude injuries from intoxication except if the drug has been administered “on the advice of a physician.”
Before the new legislation can take effect, the two chambers have to pass each other’s bills – a formality – and then send them to Gov. Donald L. Carcieri for his signature.
CVS April sales jump more than 31 percent
WOONSOCKET – CVS Corp. says its total sales for the four weeks ending April 30 were $2.78 billion, up 31.2 percent from the same period last year. The jump includes the impact of the acquisition of 1,269 Eckerd drugstores; same-store sales were up 5.2 percent.
Total pharmacy sales represented 71.7 percent of total company sales in April, CVS said, and they were up 7.9 percent (same-store), while front-end same-store sales decreased 0.7 percent. Front-end sales were negatively affected by an earlier Easter (March 27 vs. April 11 last year), the company said, which shifted more holiday sales into March.
Year-to-date, total sales for the 17 weeks ending April 30 have been $11.96 billion, CVS said, up 33.8 percent from last year. Pharmacy same-store sales are up 8.6 percent year to date, while front-end same-store sales are up 5 percent.
CVS is America’s largest retail pharmacy, operating 5,415 retail and specialty pharmacy stores in 36 states and the District of Columbia as of April 30. It also operates an online pharmacy, CVS.com, and a pharmacy benefit management, mail-order and specialty pharmacy subsidiary, PharmaCare.
Rhode Island to receive $11.7M in housing funds
WASHINGTON – Rhode Island will get $11,748,769 from the U.S. Department of Housing and Urban Development (HUD) to revitalize neighborhoods, expand affordable housing, shelter the homeless and for economic development, according to U.S. Sen. Jack Reed.
The state got $397,733 more last year, Reed said, but the federal government cut the state’s Community Development Block Grant (CDBG) funds by $296,480 and its Home Investment Partnership (HOME) funds by $103,815.
The CDBG program will provide $5,860,847 to help low- and moderate-income people by renovating public buildings, providing low-cost housing loans, and increasing services to neighborhoods and senior centers, Reed said.
The HOME program will allocate an additional $5,350,039 to assist in rehabilitating housing and the production of affordable rental and homeowner housing.
Emergency Shelter Grant Program funds of $343,702 will be distributed to public and private organizations for assistance to emergency shelters for the homeless.
“This funding will help provide local communities with money for economic development and the state with money to provide safe, decent, affordable housing for working families and seniors in Rhode Island,” Reed said in a news release. “I don’t understand why the Bush administration continues to cut funding.”
URI to televise, Webcast its 2005 commencement
KINGSTON – Every year, graduating University of Rhode Island students have to handpick a family members and friends who can attend commencement – such is the demand for the limited seats available. But for those who can’t make it this year, URI is offering alternatives.
URI’s 119th commencement, May 22, will be broadcast live on public access television – Cox Cable channel 15 – and on RIPBS (Channel 36 or Cox channel 8), and it will be Webcast live for viewers outside the state. Information is at www.uri.edu/commencement.
Listeners also have the option to tune their radio dial to WRIU, 90.3 FM to hear the ceremonies.
Weather permitting, Barbara Meagher of Johnston, a URI assistant professor of journalism and a 21-year veteran of local television, will also host a pre-commencement TV show from the university’s quadrangle, providing commentary and live interviews starting at noon.
