Gillette Co., which agreed last week to be acquired by Procter & Gamble Co. for about $57 billion, said Thursday that fourth-quarter net income rose 13 percent, helped by sales of razors and Duracell batteries.
The Boston-based company earned $415 million, or 41 cents a share, missing estimates by 1 cent a share, according to Thomson First Call. A year ago, Gillette earned $368 million, or 36 cents a share. Sales jumped 19 percent, the most in eight years, to $3.11 billion.
Sales of shavers and razors grew 16 percent, to $1.09 billion. Gillette’s global market share in that category is more than 70 percent. Duracell sales rose 12 percent, to $770 million.
“Gillette’s blade and razor franchise … is already the best a business can get,” Lauren Lieberman, a New York-based analyst at Credit Suisse First Boston, wrote in a report.
Chief Executive James Kilts is expected to get at least $185 million after Procter & Gamble completes the deal, The Wall Street Journal reported. That is more than the $153 million previously estimated according to a compensation package that Gillette confirmed.
Massachusetts Secretary of Commonwealth William Galvin is probing P&G’s purchase of Gillette, citing concern that the compensation might have been a motivation for the sale. A Gillette spokesman could not be reached for comment.
Gillette stock fell 22 cents Thursday, to $50.48, on the New York Stock Exchange.
In other earnings news:
– Sprint Corp. said fourth-quarter earnings almost quadrupled on a record quarterly increase in wireless customers. The Overland Park, Kan.-based company posted earnings of $437 million, or 29 cents a share, up from $110 million, or 7 cents a share, in the year-ago period. Excluding one-time items, Sprint would have earned 31 cents a share, missing estimates by 1 cent a share.
Revenue increased 4 percent, to $6.93 billion, as Sprint added 1.58 million wireless customers. That brought its total wireless customers at the end of 2004 to 24.8 million, up 22 percent for the year. The quarterly results were the first since December’s announcement that Sprint is acquiring Nextel Communications Inc. for $35 billion in stock and cash.
Shares of Sprint rose 12 cents, to $24.60, on the NYSE.
– PepsiCo Inc. posted an 8 percent increase in fourth-quarter net income, to $985 million, or 58 cents a share, up from $914 million, or 52 cents a share, a year earlier. Excluding items, the Purchase, N.Y.-based company would have earned 58 cents a share, meeting estimates. Revenue rose 9 percent, to $8.8 billion.
PepsiCo stock rose 19 cents, to $54.33, on the NYSE.
– Comcast Corp., the nation’s biggest cable TV system operator, reported fourth-quarter net income of $423 million, or 19 cents a share, easily surpassing estimates of 11 cents a share. Revenue increased 10 percent, to $5.2 billion, pushing the Philadelphia-based company over $20 billion in annual revenue for the first time. In the year-ago period Comcast earned $383 million, or 17 cents a share.
Shares of Comcast rose 15 cents, to $32.11, on the Nasdaq stock market.
– Whirlpool Corp. said fourth-quarter earnings fell 22 percent, to $97 million, or $1.44 a share, from $124 million, or $1.76 a share, a year ago. The Benton Harbor, Mich.-based company’s stock fell $2.92, more than 4 percent, to $65.35 on the NYSE.
