Gillette Says Earnings Won’t Meet Forecasts

Gillette Co. said it will report weaker-than-expected results for the rest of the year because of disappointing sales of its Braun, stationery and toiletries products and a slow recovery in foreign markets. Gillette, which slashed 4,700 jobs in September as demand fell for its goods outside the United States, said fiscal second-quarter earnings will be down about 20% from the year-earlier period to about 26.4 cents, far below the consensus Wall Street estimate of 29 cents. It expects to report a low single-digit increase in sales for the quarter. Boston-based Gillette, which gets about two-thirds of its revenue and 60% of its income from foreign sales, said its profit should rebound by a percentage increase in the “high single digits” in the third quarter and “in the mid-teens” in the fourth quarter, both less than forecasts. The company had said in April that earnings would decline about 12% in the second quarter but would return to its historic 15% to 20% growth in the second half. Gillette shares slipped 44 cents to close at $47.31 on the New York Stock Exchange. The company issued its warning after the markets closed.