Duracell Q2 Battery Sales Dip 2%
Staff -- TWICE, 8/19/2002
Boston — Sales of Duracell batteries slipped 2 percent in the second quarter at parent Gillette, dropping to $428 million. However, profit for the Duracell business climbed 12 percent, to $46 million, according to the company.
Increased promotional spending for Duracell batteries, especially in the highly competitive North American market — together with shifts in brand mix, pack sizes and retail channels — resulted in lower overall battery segment sales. These trends restrained profit growth, tempering the benefits of higher volume and cost-saving initiatives during the second quarter, Gillette said.
"While the high level of promotional spending in the battery category remains troubling, we are making progress toward our goal of improving our margin," said chairman/CEO James M. Kilts. "We also are doing the right things to focus more on consumer benefits and less on promotional activities."
Duracell's worldwide unit volume grew 4 percent in the second quarter. Overall Gillette sales in the second quarter, ended June 30, climbed 5 percent, to $2 billion, up from $1.9 billion in the year-ago period.
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