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Gillette 2Q profit on target
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July 20, 2000: 5:05 p.m. ET
Consumer products maker posts 2% increase in quarterly operating profit
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NEW YORK (CNNfn) - Gillette Co. posted a modest 2 percent gain in second-quarter operating profit Thursday, matching Wall Street's expectations despite currency exchange woes that dragged down worldwide sales.
The Boston-based maker of razors, shampoos, batteries and other consumer products earned $296 million, or 28 cents per diluted share, on an operating basis, up from $290 million, or 25 cents per share, in the year-earlier period.
The latest results matched the First Call consensus estimate of analysts.
Including a special charge of $427 million, or 41 cents per share, associated with the planned divestiture of its stationery products line, Gillette posted a net loss of $131 million, or 13 cents per share. The company is in talks to sell the unit to Newell Rubbermaid (NWL: Research, Estimates).
 Sales for the three months rose a slim 2 percent to $2.25 billion.
In May, the company warned that weakness in the euro would cut into sales growth for the quarter. A weak euro hurts European revenue when converted into U.S. dollars.
Excluding currency fluctuations and the sale of the company's White Rain hair care line in April, sales would have climbed 8 percent, Gillette said.
"We continued to make progress in the second quarter, reflecting the success of our new products and the improving economic conditions in developing markets," said Chief Executive Michael C. Hawley.
The company also said it will retain the Braun lines of household, hair care and personal diagnostic equipment products, after launching a review of these offerings last year amid sluggish sales.
For the first six months of the year, net income totaled $127 million, or 11 cents per share, including special items, compared with $569 million, or 50 cents per share a year earlier. First-half sales rose 4 percent to $4.16 billion.
Gillette (G: Research, Estimates) shares slipped 7/8 to 32-7/8 at the end of regular trading Thursday on the New York Stock Exchange. 
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Gillette
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