Profits slump at Gillette

Gillette's marketing campaign weighed on profits

The world's largest razor and blade maker, Gillette, has seen its profits plunge 16% between July and September.

The firm, that also makes Braun shavers, Duracell batteries and Oral-B toothbrushes, has been reducing its stock piles in order to improve its profitability.

Gillette is likely to become a victim of fading consumer confidence, as shoppers feel the pinch and replace luxury brands with cheaper alternatives.

An increased spend on marketing also weighed the firm's profits down.

At the end of last year, the company slashed 3,000 jobs - or 8% of its workforce - in order to turn itself around.

'Healthy trend'

The Boston-based company posted a net profit of $296m (£206m; 329.4 euros), down from $350m in the same period a year earlier.

Profits at its Duracell battery unit were especially weak, plummeting 55% due to the economic weakness in Latin American and inventory reductions.

Overall, Gillette said inventories were down $77m from a year ago.

But despite poor results, the figures beat analyst expectations.

"This is as healthy a trend as I've seen in Gillette for at least three years," said William Steele, consumer products analyst at Banc of America Securities.

And shares on the New York Stock Exchange rose over 5% to close at $31.30.