News

Gillette Reports Record Earnings in 2003

February 09, 2004 by Jeff Shepard

Gillette Co. (Boston, MA) announced full-year and fourth-quarter results. For the year, Gillette reported record earnings per share on the strength of solid growth in net sales and double-digit percentage increases in profit from operations and income from continuing operations. Strong new and established product performance and portfolio-wide marketing investments drove the gains despite heightened competition and costs related to a manufacturing realignment in Europe.

Duracell sales for the year of $2.02 billion grew 6 percent, benefiting from spikes in consumer demand in both the first and third quarters due to US homeland security concerns and electrical blackouts, respectively. Profit of $348 million increased 49 percent from the prior year, reflecting sales gains, manufacturing efficiencies and overhead cost savings. For the fourth quarter, sales of $685 million increased 5 percent, while profit climbed 35 percent to $149 million.

Margin in the quarter improved considerably, reflecting substantial cost savings. Sales growth in the quarter resulted from favorable foreign exchange of 5 percent, the positive effect of lower trade and consumer spending and, to a lesser extent, the addition of the Nanfu battery business in China. The gains were partially offset by the impact of lower prices from Duracell's price-deal realignment initiative.