FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 10, 1994
THE GILLETTE COMPANY
(Exact name of registrant as specified in its charter)
Delaware I-922 04-1366970
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Identification
Number) No.)
3900 Prudential Tower Building, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip Code)
(617) 421-7000
(Registrant's telephone number, including area code)
N/A
Former name or former address, if changed since last report.)
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Item 5 Other Events
On January 10, 1994, the registrant announced the matter
described in Exhibit 1 which is incorporated herein by
this reference.
EXHIBIT
1 The Gillette Company Press Release dated January 10, 1994
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SIGNATURE
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
January 10, 1994 By: JOSEPH E. MULLANEY
Joseph E. Mullaney
Vice Chairman of the Board of
Directors
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EXHIBIT INDEX
Exhibit No. Description
Exhibit 1 The Gillette Company Press Release dated
January 10, 1994
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EXHIBIT 1
News Release
The Prudential Tower Building
Gillette Boston, MA 02199
Company
World-Class Brands, Products, People
Date January 10, 1994
For Release Immediately
Contact David A. Fausch, Vice President, Corporate Relations, (617)
421-7765
Robert E. DiCenso, Vice President, Investor Relations, (617)
421-7750
GILLETTE ESTIMATES FOURTH QUARTER RECORD;
ANNOUNCES REALIGNMENT PLAN
Boston, MA . . . Sales, profit from operations and earnings in the fourth
quarter of 1993 are expected to reach the highest level for any quarter in
The Gillette Company's history, Alfred M. Zeien, chairman and chief
executive officer, said today. These results are before special charges.
"This performance reflects the impact of aggressive new product programs
across the Company's core lines and the inclusion of Parker Pen results,"
Mr. Zeien said.
"Although the fiscal year-end closing is not yet completed, it is clear
that sales and earnings for the total year 1993 will also set new record
highs, before special charges," he added.
Mr. Zeien also announced that the Board of Directors has approved 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.
The realignment plan will involve various facilities and business units of
the Company. Under the plan, there will be both job additions and job
reductions. Over the next two years, some 2,000 positions, or about 6% of
the Company's worldwide total, will be affected -- largely outside the
United States. The realignment plan will result in a one-time, after-tax
charge to earnings of $164 million, or 74 cents per share in the fourth
quarter of 1993.
As part of Gillette's expanding activities in the changing world trade
environment, Mr. Zeien reported that in 1993 the Company's recent ventures
in China, Poland and Russia exceeded their start-up period targets.
"Clearly, Gillette is not cutting back or downsizing its overall
operations, but is adjusting how it is organized and how it operates to
compete more effectively in a global arena. We will be expanding our
capital spending and increasing the funding of our research and
development programs and adding to our advertising levels," Mr. Zeien said.
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"With the reallocation of resources within the realignment plan, combined
with expected business expansion, we estimate total worldwide employment
at the end of 1994 to be at about today's 34,000 level. Over the past
several years the combination of substantial business growth and
productivity gains has led to strong sales improvement and more moderate
increases in total employment. These trends are likely to continue over
the longer term," Mr. Zeien added.
The realignment plan announced today, Mr. Zeien concluded, should result
in significant ongoing operating efficiencies, the effect of which will be
felt beginning primarily in 1995. There will be no material impact on
1994 results.
