SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1994 Commission File Number 1-922
THE GILLETTE COMPANY
(Exact name of registrant as specified in its charter)
Incorporated in Delaware 04-1366970
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
Prudential Tower Building, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 421-7000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Title of each class
Common Stock, $1.00 par value
Shares Outstanding September 30, 1994 . . . . . . . . . . . . . . 221,325,623
<PAGE>
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<TABLE>
PAGE 1
PART I. FINANCIAL INFORMATION
THE GILLETTE COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
(Millions of dollars, except per share amounts)
(Unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Net Sales........................................ $1,503.4 $1,339.7 $4,271.0 $3,793.6
Cost of Sales.................................... 546.2 500.7 1,545.2 1,427.9
Gross Profit................................. 957.2 839.0 2,725.8 2,365.7
Selling, General and Administrative expenses..... 659.5 572.2 1,838.0 1,592.3
Profit from operations....................... 297.7 266.8 887.8 773.4
Nonoperating Charges (Income):
Interest income................................ (5.5) (6.2) (16.7) (21.7)
Interest expense............................... 18.0 13.3 45.3 43.2
Exchange....................................... 12.0 26.5 73.5 78.9
Other charges - net............................ 1.0 1.2 (2.3) (2.2)
25.5 34.8 99.8 98.2
Income before Income Taxes and Cumulative
Effect of Accounting Changes............... 272.2 232.0 788.0 675.2
Income Taxes..................................... 100.0 87.0 289.6 253.2
Income before Cumulative Effect of
Accounting Changes......................... 172.2 145.0 498.4 422.0
Cumulative Effect of Accounting Changes.......... - - - 138.6
Net Income 172.2 145.0 498.4 283.4
Preferred Stock dividends, net of tax benefit.... 1.2 1.2 3.5 3.6
Net Income Available to Common Stockholders...... $ 171.0 $ 143.8 $ 494.9 $ 279.8
Income per common share before cumulative
effect of accounting changes................... $ .77 $ .65 $ 2.24 $ 1.90
Cumulative effect of accounting changes.......... - - - .63
Net Income per Common Share...................... $ .77 $ .65 $ 2.24 $ 1.27
Dividends declared per common share.............. $ .25 $ .21 $ .50 $ .42
Average number of common shares outstanding
(thousands) 221,233 220,458 221,093 220,344
<FN>
See Accompanying Notes to Consolidated Financial Statements.
/TABLE
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<TABLE>
PAGE 2
THE GILLETTE COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
(Millions of dollars)
(Unaudited)
<CAPTION>
September 30 December 31
1994 1993
<S> <C> <C>
Current Assets:
Cash and cash equivalents.................... $ 78.6 $ 37.1
Short-term investments, at cost, which
approximates market value................. 3.4 1.5
Receivables, less allowances of $40.7
($45.9 at 12/31/93)...................... 1,100.3 1,226.9
Inventories:
Raw materials and supplies............... 221.0 209.1
Work in process.......................... 89.8 90.8
Finished goods........................... 784.5 574.7
Total Inventories...................... 1,095.3 874.6
Deferred Income Taxes........................ 284.6 291.5
Prepaid expenses............................. 106.7 96.4
Total Current Assets................... 2,668.9 2,528.0
Property, Plant and Equipment, at cost........... 2,758.6 2,575.9
Less accumulated depreciation............ 1,446.1 1,361.4
Net Property, Plant and Equipment...... 1,312.5 1,214.5
Intangible Assets, less accumulated amortization 898.8 916.9
Deferred Income Taxes............................ 85.8 136.9
Other Assets..................................... 333.7 306.0
$5,299.7 $5,102.3
<FN>
See Accompanying Notes to Consolidated Financial Statements
</TABLE>
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<TABLE>
PAGE 3
THE GILLETTE COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
(Millions of dollars)
(Unaudited)
<CAPTION>
September 30 December 31
1994 1993
<S> <C> <C>
Current Liabilities:
Loans payable................................ $ 416.0 $ 395.0
Current portion of long-term debt............ 27.3 46.2
Accounts payable............................. 265.9 268.9
Accrued liabilities.......................... 675.6 807.1
Dividends payable............................ - 46.4
Deferred Income Taxes........................ 12.9 6.2
Income taxes................................. 159.3 190.5
Total Current Liabilities................. 1,557.0 1,760.3
Long-Term Debt................................... 825.1 840.1
Deferred Income Taxes............................ 172.5 166.1
Other Long-Term Liabilities...................... 836.9 835.5
Minority Interest................................ 16.6 21.3
Stockholders' Equity:
8.0% Cumulative Series C ESOP Convertible
Preferred, without par value, issued: 1994,
163,597 shares; 1993, 164,243 shares....... 98.6 99.0
Unearned ESOP Compensation................... (49.0) (53.8)
Common stock, par value $1.00 per share:
Authorized 580,000,000 shares
Issued: 1994, 279,010,713 shares;
1993, 278,587,610 shares........... 279.0 278.6
Additional paid-in capital................... 271.0 259.4
Earnings reinvested in the business.......... 2,742.2 2,357.9
Cumulative foreign currency
translation adjustments.................... (403.3) (415.0)
Treasury stock, at cost:
1994, 57,685,090 shares;l993, 57,697,990 shares (1,046.9) (1,047.1)
Total Stockholders' Equity............... 1,891.6 1,479.0
$5,299.7 $5,102.3
<FN>
See Accompanying Notes to Consolidated Financial Statements
/TABLE
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<TABLE>
PAGE 4
THE GILLETTE COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions of dollars)
(Unaudited)
<CAPTION>
Nine Months Ended
September 30
1994 1993
<S> <C> <C>
Operating Activities
Net income $ 498.4 $ 283.4
Adjustments to reconcile net income to net
cash provided by operating activities:
Cumulative effect of accounting changes - 138.6
Depreciation and amortization 152.7 159.6
Other 19.3 35.0
Changes in assets and liabilities, net of
effects from acquisition of businesses:
Accounts receivable 109.0 149.9
Inventories (235.8) (149.3)
Accounts payable and accrued liabilities (77.6) (137.0)
Other working capital items (29.2) 33.1
Other non-current assets and liabilities 16.5 13.1
Net cash provided by operating activities 453.3 526.4
Investing Activities
Additions to property, plant & equipment (239.8) (213.5)
Disposals of property, plant & equipment 16.7 11.8
Acquisition of businesses, less cash acquired (25.9) (438.1)
Sale of Business 3.0 -
Other 8.7 (34.8)
Net cash used in investing activities (237.3) (674.6)
Financing Activities
Proceeds from exercise of stock option and
purchase plans 11.9 9.3
Proceeds from long-term debt - 300.0
Reduction of long-term debt (45.0) (104.6)
Increase in loans payable 18.7 124.3
Dividends paid (160.5) (135.8)
Net cash provided by (used in) financing
activities (174.9) 193.2
Effect of Exchange Rate Changes on Cash .4 (6.9)
Increase in Cash and Cash Equivalents 41.5 38.1
Cash and Cash Equivalents at Beginning of Year 37.1 35.3
Cash and Cash Equivalents at End of Quarter $ 78.6 $ 73.4
Supplemental disclosure of cash paid for:
Interest $ 47.5 $ 45.6
Income taxes $ 186.0 $ 109.7
Non-cash investing and financing activities:
Acquisition of businesses:
Fair value of assets acquired $ 8.1 $ 629.0
Cash paid 25.9 390.4
Liabilities assumed $ (17.8) $ 238.6
<FN>
See Accompanying Notes to Consolidated Financial Statements
/TABLE
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<PAGE> PAGE 5
THE GILLETTE COMPANY AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Accounting Comments
Reference is made to the registrant's 1993 annual report to stockholders,
which contains, at pages 26 through 37, financial statements and the notes
thereto.
For interim reporting purposes, advertising expenses are charged to operations
as a percentage of sales based on estimated sales and advertising expense for
the full year.
With respect to the financial information for the interim periods included in
this report, which is unaudited, the management of the Company believes that
all adjustments, consisting only of normal recurring accruals necessary to a
fair presentation of the results for such interim periods, have been included.
Acquisition
On May 7, 1993, the Company acquired Parker Pen Holdings Limited (Parker Pen),
a worldwide writing instruments company, headquartered in England. The
acquisition has been accounted for by the purchase method of accounting. The
purchase price and other costs of the acquisition had been recorded at $458
million, substantially all of which had been allocated to goodwill at December
31, 1993, pending an independent appraisal of the net assets acquired.
Additional goodwill of $26 million was recorded principally to accrue other
costs associated with the acquisition. The independent appraisal of Parker
Pen's net assets was completed and the appropriate allocation of the purchase
price to the respective fair values of the net assets acquired has been
recorded in the financial statements in the third quarter, 1994. As a result,
property, plant and equipment increased $8.5 million. Management believes that
Parker's principal intangible asset is its trade name, which is included in
goodwill, and that no other identifiable intangible assets were acquired. The
Company consolidated Parker Pen's results of operations commencing with the
third quarter, 1993, including amortization of the associated goodwill over a
40-year period.
The following unaudited summary presents the pro forma combined results of
operations of the Company and Parker Pen for the nine months ended September 30,
1993, as if the acquisition had occurred at the beginning of this period.
The results do not purport to indicate what would have occurred had the
acquisition been made on those dates or what results may be in the future.
Nine Months ended
September 30
(Millions of dollars, except per share amounts) 1994 1993
Pro Forma
Net sales $4,271.0 $3,944.5
Before cumulative effect of accounting changes:
Income $ 498.4 $ 429.9
Income per common share $ 2.24 $ 1.93
<PAGE>
<PAGE> PAGE 6
Realignment Plan
Beginning with the fourth quarter of 1993, the Company's financial statements
reflect charges for a realignment plan to take advantage of opportunities
created by the continuing trend to more open world trade and the growth of the
Company's global operations, and to improve the competitive position of the
Company's business. Under the plan, there will be both job additions and
reductions during 1994 and 1995, with some 2,000 positions, or about 6% of the
Company's worldwide total, affected by the plan, primarily outside the United
States. These actions resulted in a fourth quarter charge to profit from
operations of $262.6 million ($164.1 million after taxes or $.74 per share).
The provisions of the realignment plan were created according to definitions in
SFAS 5, Accounting for Contingencies. All provisions were specific. There
were no provisions for general contingencies or for any asset impairments other
than those resulting from changes in the expected use of assets as a result of
the realignment plan. Only specific incremental and direct costs clearly
identifiable with various projects and which could be estimated with reasonable
accuracy were included in the plan.
The estimated costs included severance for terminated employees as required by
the various laws or union contracts in the affected countries. In other
locations severance benefits were calculated consistent with the Company's
general practice in recent years. All salaries and benefits for periods prior
to termination under the realignment plan are being charged to operations, and
are not part of the realignment charge. No costs related to new employees have
been included in the realignment expense.
The realignment charge includes costs which are classified into two principal
categories as follows:
1. Costs associated with the closure and disposal of major
manufacturing facilities in all business segments due
principally to excess manufacturing capacity which was caused
by falling global trade barriers. These costs totaled $72.0
million and consisted primarily of, a) severance costs of
$62.3 million for terminated employees as required by local
country laws, union contracts and company policies, and b)
$9.2 million in facility exit costs, distributor termination
payments and lease termination costs.
2. Costs associated with organizational realignment and related
work force reductions to improve the Company's competitive
positioning of its business and adaptation to the continuing
trend of more open world trade. Organizational realignment
costs included the following:
<PAGE>
<PAGE> PAGE 7
Asset Inte-
(Pre-Tax $ Millions) Severance Write- gration
Costs downs Costs Total
o Integration of various
headquarters, marketing
and administrative
functions in all business
geographical areas $30.2 $ 3.4 $ 8.0 $41.6
o Downsizing of factory and
distribution operations
in the worldwide blades
and razors, toiletries
Oral-B business segments 33.6 29.5 17.1 80.2
o Integration of the newly
acquired Parker
facilities and
organizations by Gillette
worldwide organization 4.5 7.2 3.2 14.9
o Various other asset
write-downs to net
realizable value for
impairments caused by the
realignment plan and
other minor related
projects in all business
segments and geographical
areas 9.2 43.8 0.9 53.9
TOTAL $77.5 $83.9 $29.2 $190.6
Severance related benefits are being communicated to employees as the
individual realignment programs are executed. Asset write-downs are to net
realizable value due to expected changes in use of the assets as a result of
the realignment plan. Integration costs are those incurred for the closing of
smaller facilities, distributor termination payments and lease termination
costs.
The realignment program will require estimated cash expenditures (after income
tax effects) of $27 million in 1994 and $58 million in 1995. Non-cash costs,
principally for the reduction of property, plant and equipment and other assets
to net realizable values, total $79.2 million. The cash flow benefits of the
realignment program, comprised principally of reduced salaries, wages and
overhead costs, will be primarily reinvested into research and development,
capital spending and advertising to support product line development and
expansion.
During the three and nine months periods ended September 30, 1994, the Company
charged costs of $73.7 million and $124.1 million, respectively, to the
realignment accrual established in 1993. Of the some 2,000 net positions
expected to be eliminated, approximately 942 had been eliminated by September
30, 1994. The realignment programs, with some minor exceptions, are being
implemented and realignment activities are planned to be ongoing through the
fourth quarter of 1995.<PAGE>
<PAGE>
PAGE 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
In reviewing the following analysis, it should be understood that results
for any interim period are not necessarily indicative of the results for the
entire year.
Third Quarter 1994 versus 1993
Sales for the three months ended September 30, 1994, were $1.50 billion, an
increase of 12% from $1.34 billion for the same period in 1993. The gain
reflected a 10% increase from volume and new products, and the 2% favorable
combined effect of fluctuations in exchange rates and changes in selling
prices. Profit from operations was $297.7 million, up 12% from $266.8
million a year earlier. Net income of $172.2 million increased 19% compared
with $145.0 million reported in the third quarter of 1993. Net income per
common share of $.77 increased 18% over the $.65 reported a year earlier.
Domestic sales gained 10% and sales from foreign operations increased 14%.
Sales and profits of the Company's blade and razor business were
substantially higher than those of the prior year. This growth was
attributable to geographic expansion, the continued growth of the Gillette
Sensor System, Sensor for Women, SensorExcel, the new Custom Plus Disposable
Razor, and the improving European economic conditions and strengthening
currencies.
Sales of Braun products rose sharply as Europe, the United States and Japan
posted increases. The growth of new products, the success of the new
FlavorSelect coffeemaker and the introduction of the Flex Control 200 shaver
in Japan, the Supervolume Hairstyling Appliance in Europe and the Electric
Plaque Remover contributed to the sales increase. Profits were
significantly higher due to sales of products with higher profit margins as
well as to lower overhead expenses.
Toiletries and cosmetics sales were sharply higher than those of the prior
year as all geographic regions reported increases. The success of the new
clear gel deodorant/antiperspirant products and the launch of the Series
line throughout Continental Europe contributed to the increase. Profits
were virtually unchanged, due to increased advertising and marketing support
for the new products in the United States and Europe.
Sales of stationery products were slightly above those of the prior year as
significant growth in Asia Pacific offset shortfalls in the United States
and Europe, primarily the Waterman line in France. Profits were well above
those of 1993, reflecting the sales increase along with lower operating
costs.
Oral-B sales in the third quarter rose considerably in most major markets
due to the introduction of new products, including the Advantage and Contura
toothbrushes, specialty rinses and toothpastes and Ultra Floss. Profits
were significantly lower, primarily in the United States, due to costs
associated with new products.
<PAGE>
<PAGE>
PAGE 9
Nine Months 1994 versus 1993
Sales for the nine months ended September 30, 1994, increased 13% to $4.27
billion, compared with $3.79 billion in 1993. The growth was due to a 12%
increase from volume and new products including Parker Pen, and the 1%
favorable combined effect of fluctuations in exchange rates and changes in
selling prices. Without Parker Pen, sales increased 9%. Domestic sales
increased 12%, and sales from foreign operations increased 13%. Excluding
Europe, where the cumulative effect of economic weaknesses and the
unfavorable impact of weaker currencies adversely affected sales growth,
sales from other foreign operations increased 19%.
Sales and profits of blades and razors were considerably higher than those
of a year earlier. The continued growth of the Gillette Sensor franchise,
including Sensor for Women and the successful launch of the SensorExcel
system, contributed to increases in all major geographic regions including
Europe, where sales and profits increased, in part, due to improving
economic conditions in the U.K. and Italy.
Sales of Braun products were higher than those of the prior year.
Significant sales growth in the United States, primarily in the oral care
business and the new FlavorSelect coffeemaker, and in Japan, due to the
improved shaver business, offset weaker sales in certain European countries,
primarily Germany. Profits increased substantially as sales of products
with higher profit margins and lower operating expenses offset shortfalls in
Europe.
Toiletries and cosmetics sales for the nine months were notably higher, with
increases in all major markets including Europe, where sales were
substantially above the prior year. Sales increases in deodorant/anti-
perspirant products, reflecting the introduction of the clear gel technology
into Soft & Dri, Dry Idea and Right Guard products in the United States and
the launch of the Series Line in Continental Europe contributed to the
growth. Profits were substantially higher as sales growth offset increased
costs associated with new products.
Sales and profits of stationery products for the nine months increased
primarily due to the inclusion of Parker Pen. Without Parker Pen sales rose
slightly. Higher sales in the United States and most overseas regions
offset shortfalls in Europe.
Sales of Oral-B products increased in all major geographic regions, aided by
new products, including the Advantage and Contura toothbrushes, Ultra Floss,
specialty rinses and toothpastes. Profits were significantly lower due to
the costs associated with new products.
<PAGE>
<PAGE>
PAGE 10
The approximate percentages of consolidated net sales for each of the Company's
business segments are set forth below.
Blades Toiletries
& & Stationery Braun Oral-B
Period Razors Cosmetics Products Products Products
Nine Months 1994 39% 20% 13% 21% 7%
Nine Months 1993 39% 20% 11% 23% 7%
Gross profit was $2.73 billion, an increase of $360.1 million, or 15%, from
1993. The gross profit percentage was 63.8%, compared with 62.4% for the same
period in 1993, reflecting sales gains in products with higher profit margins,
such as the Sensor system, and the impact of lower manufacturing costs.
Selling, general and administrative expenses increased by $245.7 million, or
15%. Combined advertising and sales promotion expenses increased 23%.
Spending on research and development increased 3%, while other marketing and
administrative expenses increased 12%.
Beginning with the fourth quarter of 1993, the Company's financial statements
reflect charges for a realignment plan to take advantage of opportunities
created by the continuing trend to more open world trade and the growth of the
Company's global operations, and to improve the competitive position of the
Company's business. The realignment programs, with some minor exceptions, are
being implemented and realignment activities are planned to be ongoing through
the fourth quarter of 1995. Additional information concerning the realignment
plan is included on pages 6 and 7.
Profit from operations was $887.8 million, up 15% from $773.4 million in the
prior year. Profit from operations increased 21% within the United States, and
12% in foreign operations.
Net interest expense was higher for the nine months, but net exchange losses
and the effective tax rate were lower.
Net income of $498.4 million increased 18%, compared with last year's net
income of $422.0 million, before the effects of accounting changes. Net income
per common share of $2.24 compared with $1.90, before the effects of accounting
changes, an increase of 18% over the prior year.
<PAGE>
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PAGE 11
Interim financial results may also be viewed on an organizational basis. For
this purpose, operating profits from major operational units are reported
before net corporate headquarters expense, net interest expense, exchange
losses and income taxes.
Sales and profits of the North Atlantic Group in the quarter were sharply
above those of the corresponding period of a year ago. For the nine months,
sales were considerably higher and profits were sharply above last year.
The Stationery Group's third quarter sales were slightly below and profits
were sharply above those of the prior year. For the nine months, sales and
profits were significantly higher, reflecting the inclusion of Parker Pen
results.
Sales of the International Group in the quarter were considerably higher and
for the nine months were sharply above those of the prior year. Profits for
the quarter were higher and for the nine months were sharply above those of
last year.
Sales of the Diversified Group in the quarter rose sharply and for the nine
months were higher than those of the prior year. Profits were well above
those of the prior year for the quarter and the nine months.
Financial Condition
Net cash provided by operating activities for the nine months ended
September 30, 1994, amounted to $453.3 million, compared with $526.4 million
in the same period last year. The decrease in 1994 was the result of higher
working capital requirements partially offset by an increase in Net Income.
Net debt (total debt, net of associated swaps, less cash and short-term
investments) at September 30, 1994, amounted to $1.19 billion, compared with
$1.26 billion at year-end 1993. The Company's current ratio at September 30,
1994, was 1.71, compared with 1.44 at December 31, 1993.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is subject to legal proceedings and claims arising out of its
business, which cover a wide range of matters, including antitrust and trade
regulation, product liability, contracts, environmental issues, patent and
trademark matters and taxes. Management, after review and consultation with
counsel, considers that any liability from all of these legal proceedings and
claims would not materially affect the consolidated financial position,
results of operations, or liquidity of the Company.
<PAGE>
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PAGE 12
Item 6 (a) Exhibits
<TABLE>
Exhibit 11
THE GILLETTE COMPANY AND SUBSIDIARY COMPANIES
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(Millions of dollars, except per share amounts; shares in millions)
<CAPTION>
Nine Months Ended September 30
1994 1993
<S> <C> <C>
Net Income Per Common Share-Assuming No Dilution
Net income as reported....................... $ 498.4 $ 283.4
Less: Preferred Stock Dividends, net of tax
benefit............................... (3.5) (3.6)
Net income available to Common Shareholders.. $ 494.9 $ 279.8
Average common shares outstanding............ 221.1 220.3
Reported net income per common share......... $ 2.24 $ 1.27
Net Income Per Common Share-Assuming Full Dilution
Net income available to Common Shareholders
(As Above)................................. $ 494.9 $ 279.8
Add: Series C ESOP Preferred Stock Dividend,
net of tax benefit......................... 3.5 3.6
Deduct: Add'l. ESOP Costs, net of tax benefit (1.7) (2.1)
Adjusted Net Income available to common share-
holders.................................... $ 496.7 $ 281.3
Average common shares outstanding............ 221.1 220.3
Add: Conversion of Series C ESOP Preferred
Stock.................................. 3.3 3.3
Net additional common shares upon
exercise of stock options.............. 1.9 1.8
Adjusted average common shares outstanding... 226.3 225.4
Net income per common share -
assuming full dilution..................... $ 2.20 $ 1.25
</TABLE>
Exhibit 27 Financial Data Schedule filed herewith.
Item 6 (b). Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the quarter
covered by this report.<PAGE>
<PAGE>
PAGE 13
SIGNATURE
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
THE GILLETTE COMPANY
(Registrant)
THOMAS F. SKELLY
Thomas F. Skelly
Senior Vice President and
Chief Financial Officer
October 28, 1994
ANTHONY S. LUCAS
Anthony S. Lucas
Vice President, Controller and
Principal Accounting Officer
October 28, l994
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The data reported in this exhibit are based on unaudited statements but
include all adjustments which the company considers necessary for a fair
presentation of results for this period.
</LEGEND>
<CIK> 0000041499
<NAME> THE GILLETTE COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1993
<PERIOD-END> SEP-30-1994
<CASH> 78,600
<SECURITIES> 3,400
<RECEIVABLES> 1,141,000
<ALLOWANCES> 40,700
<INVENTORY> 1,095,300
<CURRENT-ASSETS> 2,668,900
<PP&E> 2,758,600
<DEPRECIATION> 1,446,100
<TOTAL-ASSETS> 5,299,700
<CURRENT-LIABILITIES> 1,557,000
<BONDS> 825,100
<COMMON> 279,000
0
98,600
<OTHER-SE> 1,514,000
<TOTAL-LIABILITY-AND-EQUITY> 5,299,700
<SALES> 4,271,000
<TOTAL-REVENUES> 4,271,000
<CGS> 1,545,200
<TOTAL-COSTS> 1,545,200
<OTHER-EXPENSES> 1,838,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 45,300
<INCOME-PRETAX> 788,000
<INCOME-TAX> 289,600
<INCOME-CONTINUING> 498,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 498,400
<EPS-PRIMARY> 2.24
<EPS-DILUTED> 2.20
</TABLE>
