Gillette taps Nabisco CEO

January 22, 2001: 9:25 a.m. ET

Razor maker picks James Kilts to replace Michael Hawley in top post

NEW YORK (CNNfn) - Gillette Co., the world's largest producer of shaving products, announced Monday that it has named Nabisco Holdings Corp. Chief Executive James M. Kilts as its new CEO -- reaching outside its ranks to replace former CEO Michael C. Hawley who was forced to resign.

Gillette (G: Research, Estimates) launched a search for a new leader in October after the resignation of Hawley, a longtime insider who held the top job for just 18 months. The company has been struggling to rebound from more than two years of sluggish sales growth and disappointing earnings.

Kilts, 52, is credited with revamping Nabisco during his three years as chief executive. His appointment as CEO vaults him past Edward DeGraan, a 32-year Gillette executive who has been acting chief executive since October and who was a contender for the top job. Kilts will take over as CEO on Feb. 12.

It's the first time since 1931 that the 100-year-old company has reached outside its own ranks for a chairman, a Gillette spokesman said.

	WHAT DOES GILLETTE MAKE?
		Gillette, a $10 billion conglomerate, is best known for its blades and razors, but it also makes Duracell batteries, Oral-B toothbrushes and other products.

Kilts has been credited with engineering a solid turnaround during his three years at the helm of Nabisco, the maker of Ritz crackers, Oreo cookies and Grey Poupon mustard.

Nabisco was separated from the since-renamed R.J. Reynolds Tobacco Holdings Inc. of Winston-Salem, N.C., in mid-1999, and late last year was bought by Philip Morris Cos. of New York for $14.9 billion.

Gillette, a $10 billion conglomerate, is best known for its blades and razors, but it also makes Duracell batteries, Oral-B toothbrushes and other products.

A long string of bad news continued last month, when Gillette warned of declining sales and worse-than-expected earnings for its fourth quarter and the first quarter of 2001. It also announced a big restructuring, cutting 2,700 jobs, or 8 percent, of its global work force.

Shares of Gillette slipped 6 cents to $33.63 in Monday afternoon trading.