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Gillette 2Q profits off 19%
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July 15, 1999: 5:11 p.m. ET
Company blames weaker overseas sales, buyback program for the decline
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NEW YORK (CNNfn) - Gillette Co. shaved 19 percent off its second-quarter profits Thursday, citing weaker international demand for several products, but the company still managed to match Wall Street's revised expectations.
The Boston-based razor and blade company posted second-quarter profits of $300 million, or 26 cents per common share, a sharp decrease from the $372 million, or 33 cents per share, it earned last year.
Company officials cited weaker sales of several products - including its Braun, stationary and toiletry products - and higher interest costs associated with Gillette's share buyback program for the decline.
Sales on several products were particularly weak overseas, although company officials said sales of the MACH3 shaving system increased considerably over 1998.
For the quarter, overall sales were $2.41 billion, a slight gain from the $2.33 billion posted during the same period last year. However, sales were virtually unchanged for the first half of the year at $4.35 billion.
Wall Street analysts had reduced their second quarter estimates for Gillette to 26 cents from 29 cents last month after the company warned its profits could fall by as much as 20 percent.
For the first half of the year, Gillette earned $539 million, an 11 percent decline from the $640 million earned last year.
Gillette (G)shares closed up 1-1/4 to 44-1/4 in trading Thursday. 
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Gillette Co.
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