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When folks think Gillette (NYSE: G), they think razors. They think blades. So, when you go over the company's first-quarter report this morning, something as unlikely as coppertop batteries saving the day definitely grabs your attention. But, yes, Gillette is the name behind Duracell batteries. The company is also into oral care, as you will painfully discover if you ever confuse the company's MACH3 razor for its Oral B toothbrush. That's the way it goes with consumer-geared conglomerates, expanding into different and often distant shelves within the same grocery store. If you ever want to score some easy money, bet someone that Sara Lee (NYSE: SLE) also makes hot dogs and pantyhose, or that Campbell Soup (NYSE: CPB) is a producer of spaghetti sauce and Pepperidge Farm cakes and cookies. You'd be right. So, when Gillette reported a 14% gain in March-quarter sales to go along with earnings of $0.25 a share (which came in on the high end of Wall Street's expectations), it's easy to see why the company fared so well. With homeland security advising folks to stock up on supplies like batteries, Duracells were swift sellers -- and why, oh why, couldn't Gillette also be making duct tape? But the mad rush to load up on batteries comes with a price. Now that the terror alerts have been softened, consumers are left with a lot of fresh batteries that will eventually be phased out through gradual use around the home. In other words, while the March period was atypically active for Duracell, a lull should be expected over the next quarter or two. Yet there's one more twist in the Gillette report. The toothbrushes along with the razors and blades also produced double-digit percentage gains in sales. Its razor business, which still accounts for nearly half of its sales, saw the same 16% uptick in top-line growth as the battery side. If the company continues to gain global market share in its razor business, it will help offset the logical letdown on the battery side, which accounts for less than 20% of its revenue pie. Another wildcard is its ThermoScan thermometers. Produced under the company's Braun subsidiary, it's easy to see a run on them if the SARS outbreak continues to grow and grab larger-font headlines. You have to hand it to Gillette. It's got no reason to hide under some five o'clock shadow.
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