Sales of New Products Power Gillette’s Rise in Profits

The Gillette Co., Boston, MA, said second-quarter net income rose 15%, giving much of the credit to the success of new shavers, razors and battery-powered toothbrushes. The company reported net income of $338 million, compared with $293 million a year earlier.

Sales rose 11% to $2.25 billion from $2.02 billion, with increases in all regions except Latin America. Favorable foreign-currency exchange contributed six percentage points to the increase. A double-digit increase in advertising spending also helped increase sales, the company said.

Gillette said the success of new products including the Mach3Turbo and Passion Venus shaving systems, Sensor3 disposable razors and CrossAction Power battery toothbrushes led the quarter’s strong performance. Sales in the blades-and-razors segment rose 14% to $1 billion. With the introduction of Sensor3, Gillette recorded segment market-share growth in the U.S. for the first time in four years, said chairman and chief executive James M. Kilts. The company expects competition in the segment to increase through the rest of the year, he said, but it plans to launch several other products and increase marketing activity, such as Venus Divine and Sensor3.

Rival Schick-Wilkinson Sword has been gaining market share, in part because of Intuition, a women’s shaving product introduced in April. Sector analysts are also keeping an eye out for Quattro, a four-bladed razor expected on the market next month from Schick, a unit of Energizer Holdings Inc.

Sales of oral-care products increased 15% to $316 million, helped by the launches of new manual and power toothbrushes. In the personal-care segment, sales rose 8% to $219 million, helped in North America by the rollout of PowerCaps premium clear gel antiperspirants and deodorants. In Europe, segment sales were boosted by increases in sales of Satin Care female shave gel.