Gillette experienced a 19% rise in first-quarter earnings compared to last year, as demand remained strong for all of the company’s major product lines.
Gillette’s net sales for the first quarter went up 17% from the first quarter of last year. While sales were solid in all regions, the company saw heavy growth in Russia, Turkey and Eastern Europe.
Sales also benefited from there being five more days in this year’s first quarter than last year’s.
“Our year is off to an excellent start, as our record across-the-board results show,” said James M. Kilts, chairman, president and CEO. “We see strength in all of our categories and regions, fueled by the robust performance of our existing products and the rollout of our technologically-advanced, premium products like the M3Power shaving system and Oral-B Sonic Complete rechargeable toothbrush. We are continuing to deliver solid manufacturing productivity gains and overhead savings, which are providing the funds to innovate and support our business.”
According to a press release, profit from operations for the quarter climbed 15 percent to $640 million from $556 million last year. The significant profit increase reflected strong demand for premium products across all major lines, and sustained manufacturing productivity and overhead reductions. Profit growth was tempered somewhat by costs related to the planned closure of a battery factory in the U.S., and expenses associated with the proposed merger with Procter & Gamble.
Diluted net income per common share rose to a first-quarter record of 45 cents, up 22% from 37 cents a year ago.
Mr. Kilts said, “There’s more to come in 2005 and beyond. Although we will face difficult comparisons in our second quarter, we expect ongoing strength for the first half and full year. We have exciting new products like Venus Vibrance, now launching in North America, and Oral-B Pulsar, the first battery-powered manual toothbrush, which will reach stores in July. Our proposed merger with Procter & Gamble would enhance our ability to accelerate growth opportunities in key developing markets and innovate on significantly broader platforms over the long term.”
Gillette shares fell 20 cents to in early morning trading.
Chris is a staff writer for webproworld. Visit webproworld for the latest ebusiness news.