Gillette Co. (Boston, MA) reported fourth-quarter and full-year 2001 results. Market share increased in Gillette's core category of batteries; Duracell achieved the seventh consecutive period of market share gain in the US. In line with company expectations, sales for the fourth quarter of 2001 declined three percent to $2.72 billion from $2.81 billion in fourth quarter of 2000. The adverse effect of foreign exchange reduced sales for the quarter by one percent.
Exclusive of restructuring and impairment charges, profit from operations in the fourth quarter was $503.0 million, down 11 percent from the prior year, reflecting both the lower sales and a planned shift in mix in batteries. On the same basis, net income from continuing operations fell three percent to $335.0 million in 2001, compared with the $345.0 million in 2000. Fully diluted net income per common share of $0.32 was three percent below the $0.33 in the fourth quarter of 2000. After the restructuring and impairment charges, profit from operations was $331.0 million. Net income was $200.0 million and fully diluted net income per share was $0.19.
Sales for the year 2001 were $8.96 billion, a decrease of three percent from $9.22 billion in 2000. Excluding the adverse effect of exchange, sales would have been level with those of the prior year. Exclusive of restructuring and impairment charges, profit from operations, at $1.67 billion, was 20 percent below the previous year. Net income from continuing operations of $1.04 billion was 16 percent lower than the prior year. On the same basis, diluted net income per common share declined 16 percent to $0.99, compared with $1.18 a year ago. After the restructuring and impairment charges, profit from operations for the total year was $1.50 billion. Net income was $910.0 million and fully diluted net income per share was $0.86.
