Duracell Third Quarter Sales Decrease 4 %, Profit Up 41 %
By Staff -- TWICE, 11/11/2002
BOSTON— Sales of Duracell batteries dipped 4 percent in the third quarter, down to $482 million, with Duracell profit rising 41 percent in the third quarter, to $78 million.
Duracell, a business segment of the multi-product Gillette company, reported that despite strong unit volume in Europe and lower trade spending in the United States, battery sales were curbed, due to intense competitive activity in North America and by unfavorable shifts in mix among brands, pack sizes and retail channels.
In the United States, this activity resulted in a 2-point decline in market share, Gillette said. However, margin in the third quarter, ended Sept 30, improved considerably, due primarily to cost savings initiatives, as Duracell made major progress toward its goal to achieve industry-leading profit margin, said the company.
Operating margin in the third quarter increased to 16 percent, up from 11 percent in the third quarter last year.
For the nine months, sales in the Duracell segment fell 3 percent, to $1.24 billion, while profit declined 8 percent, to $123 million.
