Procter & Gamble
The bride's balance sheet is a thing of beauty. Compared to last year's second quarter, inventories rose only 5.2% (although sales grew 2.5 times faster). Total debt decreased $354 million (11.4%). Cash and short-term investments increased $154 million (23.6%). Not bad at all.
This lady knows how to drive home sales, too. Blades and razors, Duracell, oral care, and Braun all turned in double-digit sales gains. The only laggard, if you call 9% sales growth lagging, was personal care products. But that same division turned in a 25% operating profit increase as consumers traded up from less profitable shaving foams to higher-margin gels.
Profits were slightly hampered by the planned closing of a battery factory in the U.S. and costs related to the upcoming merger. All said, things look quite good, given the 17% profit increase.
This couple expects a happy future, as CEO James Kilts noted: "Looking ahead, our combination with Procter & Gamble should enable us to realize long-term growth opportunities more quickly and create many new opportunities. We look forward to this very exciting new chapter in our history and to creating the best consumer products company in the world."
After reading today's earnings press release, I'm sure that Gillette shareholders like Warren Buffet's Berkshire Hathaway
The few unhappy folks include likely competitors Energizer
Say "I do" to further Foolishness:
- See Gillette's latest quarter by the numbers.
- Procter & Gamble also cleaned up on earnings.
- Why the happy couple's wedding was made in corporate heaven.
Fool contributor W.D. Crotty owns shares in Berkshire Hathaway. Sadly, Warren Buffett has yet to invite him to lunch. Click here to see the Fool's disclosure policy.