Gillette Co. (Boston, MA) reported record earnings per share for the third quarter and nine months, driven by the strength of core franchises, several new product successes, ongoing cost-saving initiatives and manufacturing efficiencies. Net sales, profit from operations and net income all scored double-digit percentage gains.
Duracell sales of $514 million for the quarter rose 7%, while profit of $106 million grew 35%. Tempering the quarter's sales growth were the effects of Duracell's exit from its zinc-carbon battery businesses in South Africa and India, and the impact of lower prices in North America from Duracell's price-deal realignment initiative. The higher sales were due importantly to a surge in battery demand in the US, as consumers stocked in response to electrical power interruptions, and to a lesser extent to the integration of the newly acquired Nanfu battery business in China. Duracell's solid top-line results in the third quarter, together with purchasing savings and manufacturing efficiencies, contributed to strong profit growth and improved margin in the quarter. For the nine months, sales of $1.33 billion climbed 7%, and profit of $199 million increased 62%.
