SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 17, 1999.
THE GILLETTE COMPANY
(Exact name of registrant as specified in charter)
DELAWARE 1-922 04-1366970
(State of incorporation (Commission file number) (I.R.S. employer
or other jurisdiction) identification number)
Prudential Tower Building, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (617) 421-7000.
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Item 5. Other events.
On June 17, 1999, The Gillette Company announced that it expects to report
a low single-digit increase in second quarter sales and about a 20% decrease in
earnings per share versus the prior year, both of which are somewhat below Wall
Street's estimates.
Item 7. Financial Statements and Exhibits.
99.1 Press release issued by The Gillette Company on June 17, 1999.
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 hereunto duly authorized.
THE GILLETTE COMPANY
By: CHARLES W. CRAMB
Charles W. Cramb
June 17, 1999
Immediately
Joan M. Gallagher, Vice President, Corporate Public Relations, 617-421-7792
Everett R. Howe, Vice President, Corporate Investor Relations, 617-421-7750
GILLETTE ANNOUNCES EXPECTED SECOND QUARTER RESULTS AND
AN EXPANSION OF ITS SHARE REPURCHASE PROGRAM
BOSTON, MA The Gillette Company expects to report a low single-digit
increase in second quarter sales and about a 20% decrease in earnings per share
versus the prior year, both of which are somewhat below Wall Street's estimates.
Sales growth in the mid-single digits is expected after adjusting for
divested businesses, including Jafra International (1%) and rechargeable
batteries (1%), and for the negative effect of exchange (2%-3%). The Company's
largest business, blades and razors, is expected to make good progress, led by
the outstanding performance of the MACH3 shaving system, which is exceeding
expectations. Other new products, including Duracell Ultra and the Oral-B
CrossAction toothbrush, are also being well received by the trade and consumers,
resulting in increasing sales and improved market shares. While the Braun,
Stationery and Toiletries businesses all showed progressive improvement versus
the first quarter, sales have been softer than originally anticipated,
negatively impacting the second-quarter results. Slower than anticipated
recovery in several key markets including Brazil, Germany, Japan and Russia
is affecting reported results.
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Gillette remains confident that building momentum in sales growth, coupled
with continued strong market shares and the strong second-half new products
program, should return the Company to its more traditional sales and profit
growth rates during the second half of 1999.
The Gillette Company also announced today that its Board of Directors has
authorized an expansion of its stock repurchase program, that commenced in
September 1997, from 50 to 75 million shares. It is anticipated that the
original 50 million share repurchase will be completed by the end of 1999. The
Company plans to purchase the additional 25 million shares over the next 12 to
18 months in the open market or in privately negotiated transactions, depending
on market conditions and other factors.
# # #
This report contains forward-looking statements about the Company's
future performance. There are, however, a number of factors that can affect the
Company's future prospects and progress. These include, among other things,
finalizing quarterly results, the acceptance of new products, economic
conditions, share price and the competitive market environment, all of which
contain elements of uncertainty. Please refer to the Cautionary Statements
contained in the Company's 10-K and 10-Q filings for a more detailed explanation
of the inherent limitations in such forward-looking statements.
