Gillette Chairman, CEO Retires; Earnings Meet Estimates - TheStreet

Gillette

(G) - Get Report

posted third-quarter earnings that met analysts' expectations, but also said that Chairman and Chief Executive Michael Hawley would retire immediately.

The company named Edward DeGraan, currently the president and chief operating officer, acting chief executive. Gillette also named Richard Pivirotto, the senior director, as nonexecutive chairman of the board. Both appointments are effective immediately.

"The board unanimously believes this change in management is in the best interest of the company's shareholders," Warren Buffett, the chairman of the executive committee of the board, said in a press release.

The company will conduct an internal and external search for a permanent chairman and chief executive. Hawley joined Gillette in 1961 and was named chairman and chief executive in April 1999.

The Boston-based company reported income from continuing operations of $350 million, or 33 cents a share, in line with

First Call/Thomson Financial's

12-analyst consensus estimate. This compares with last year's third-quarter earnings of $355 million, or 32 cents a share.

Ongoing sales for the quarter totaled $2.32 billion, compared with last year's sales of $2.35 billion.