Gillette today posted an 18 per cent increase in quarterly profit on a weaker dollar and charged-up sales of batteries.
But shares fell as the world's largest maker of razor blades and batteries said it expected Duracell battery sales, which rose 16 per cent despite a price cut, to slow as consumers used up battery stockpiles they built up in the first quarter amid fears of terrorism.
In January, Gillette's Duracell unit decided to cut prices on its popular AA- and AAA-sized batteries to narrow the gap with lower-priced and private-label battery makers, a move it said would cut Duracell sales by mid-single digits this year.
Boston-based Gillette posted first-quarter profit of $263 million, or 25 cents a share, compared with $223 million, or 21 cents a share, a year ago.
Sales rose 14 per cent to $1.97 billion, with weakness of the dollar against the euro helping add 5 percentage points to sales growth. The weaker dollar makes sales in Europe worth more when they are translated from euros to dollars.
Gillette shares closed Monday at $31.98 on the New York Stock Exchange after a 5.2 per cent rise on the day, its largest percentage gain in nearly 10 months.