posted a 15% increase in second-quarter earnings, helped by strong performances of its Mach3Turbo and Passion Venus razors, but the company cautioned that competition from
could hurt its market share last this year.
For the quarter ended June 30, Gillette earned $338 million, or 33 cents a share, up from last year's $293 million, or 28 cents a share. Analysts were expecting 29 cents a share.
Earnings from operations rose 12% to $505 million, from $449 million a year earlier. Sales were up 11% at $2.25 billion from last year's $2.02 billion. The company said all its regions were strong except Latin America, but that overall foreign exchange added 6 percentage points to sales.
Blade and razor sales were $1 billion for the quarter, up 14%. Duracell sales rose 1% to $432 million, and oral care sales of $316 million increased 15%.
"We will take appropriate action to continue our growth in the shaving category. With the introduction of our premium disposable razor, Sensor3, we have recorded U.S. market share growth in this segment for the first time in four years," said Chief Executive James M. Kilts. "We plan several other premium system entries ... we fully expect to remain on course to meet our goal of strong and consistent earnings growth."
The company said on a conference call that products from Schick could lower its earnings by 2 cents to 4 cents a share this year, but stood by its sales growth goals.
Shares of Boston-based Gillette were losing 7 cents to $30.30 in early
New York Stock Exchange