CHICAGO – Gillette Co. (G) 17 percent higher second-quarter profit on Thursday, as new products such as its Venus Vibrance pulsating razor for women boosted sales growth.
Profit at the Boston-based maker of razors, Duracell batteries (search) and Braun shavers rose to $498 million, or 49 cents a share, from $426 million, or 42 cents a share, a year earlier.
Analysts, on average, expected Gillette, which is set to be acquired by Procter & Gamble Co. (PG) in a $53.5 billion deal this fall, to earn 46 cents a share, according to Reuters Estimates.
Net sales jumped 13 percent to $2.77 billion. Analysts, on average, expected revenue of $2.64 billion.
P&G will swap 0.975 shares of its stock for each Gillette share in the deal, which is currently valued at about $53.5 billion and is expected to close this fall.
Blade and razor sales rose 11 percent to $1.21 billion and profit in the segment rose 16 percent to $488 million.
Duracell sales rose 18 percent, to $539 million, as an early start to the hurricane season fueled increased sales in North America, the company said. Profit rose 34 percent to $119 million, but was held back from further gains by costs for closing and a higher percentage of sales coming from less profitable larger package sizes.
Gillette is raising prices on Duracell alkaline batteries by 6 percent to 7 percent in North America later this month in an effort to mitigate higher raw material costs. Rivals are raising prices in the market by similar amounts.
Oral care sales rose 17 to $420 million and profit rose 28 percent to $87 million.
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