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Battle of the Brands: Gillette vs. Schick

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

When it comes to multi-bladed disposable razors, how many blades is enough? In the long-standing rivalry between the two biggest brands of disposable razors, the current answer seems to be five. For now.

The Gillette company, which in 2005 became part of Procter & Gamble (NYSE: PG), invented the safety razor in 1895, as well as the first razor marketed to women in 1916. They started the current arms race in multi-bladed disposable razors by introducing a twin-blade razor in 1971, and then the triple-bladed Mach 3 in 1998. Schick responded with the four-blade Quattro in 2003, then in 2005, Gillette introduced the five-blade Fusion. Of course, each of these models includes a version for women, and versions with various bells and whistles.

St. Louis-based Energizer Holdings (NYSE: ENR), a U.S. manufacturer of batteries, purchased the Schick brand of razors from Pfizer (NYSE: PFE) in 2003. Outside the North America and Australia, the same products are sold under the Wilkinson Sword brand. Either way, Schick remains a distant second to Gillette in global sales, though some analysts saw patent infringement lawsuits filed against Schick by Gillette as evidence that Gillette recognized a potential threat. Combined, these two brands account for nearly all razor sales in America.

Continue reading Battle of the Brands: Gillette vs. Schick

Procter & Gamble pops

Procter & Gamble Co. (NYSE:PG) posted strong fourth-quarter results thanks to Fusion razors and Tide detergent. It also raised its forecast for the year.

Net income was $2.86 billion, or 84 cents a share compared with $2.55 billion, or 72 cents, a year earlier. Sales rose 7.6 percent to $19.7 billion in the three months through December, the slowest pace in five quarters, according to Bloomberg News. This beat the consensus views of 83 cents profit and revenue of $19.57 billion.

The company increased its 2007 profit forecast to $2.99 to $3.03 a share from its earlier projection0n of $2.97 to $3.02. Analysts were predicting $3.02 per share, according to Thomson Financial. Shares fell in pre-market trading,

Clearly, 2005's acquisition of Gillette Co. is paying off for Procter & Gamble as is the cost-cutting undertaken by the management team. Sales of razors rose 11 percent to $1.28 billion. Fabric care and home care net revenue soared 11 percent to $4.68 billion .Baby Care and Family Care rose five percent to $3.12 billion, while Snacks, Coffee and Pet Care rose 3 percent to $1.25 billion.

Another positive for the company is the growing confidence of U.S. consumers. Lower energy prices helped push up consumer sentiment in January to higher levels than economists had expected.

Also check out some other earnings reports that we're following, and let us know what you're expecting.

Ford gets some stones

As The New York Times chronicles the collapse of Ford Motor Company (NYSE:F), the company has decided it is tired of having sand kicked in its face by Honda (NYSE:HMC) and Toyota (ADR)(NYSE:TM)

The U.S. car company will begin advertising its Fusion model as a direct and better car than its competition, the Toyota Camry and Honda Accord. Both Japanese models outsell the Fusion.

Ford's vehicle sales fell almost 8% in the U.S. during 2006.

Ford clearly wants to part with its sissy boy image and show that it is not going to be pounded to a pulp by its Japanese competitors. Not, at least, without a fight.

It may even work.

Douglas A. McIntyre is a partner at 24/7 Wall St.

U.S. cars rise in reliability ratings

Do American cars perform as reliably as foreign brands in the eyes of consumers? This question has always been somewhat of a perplexing one, as I've met diehard American car buyers who swear by Chevys against Hondas and Toyotas. On the flip side, there are those who had a few bad experiences with reliability on U.S. car brands and switched to foreign makers, vowing never to return to an American car brand.

That second example is going to be hard for American carmakers to shed as an image, but they are trying even in the face of billion-dollar quarterly losses, labor issues all over the place, and intense pressure from foreign automakers in terms of style, quality and price. Who said the car and truck business was easy? Anyway, Ford Motor Company's (NYSE:F) new Fusion model earned high marks from both Consumer Reports testers and consumers who rated its reliability -- and that's a good sign for Ford. These results demonstrate that U.S. automakers may be making strides in initial quality. But, this is only a first step -- there is a long way to go yet. A LONG way.

As Doug McIntyre reported on earlier, Japanese automakers had 39 of the 47 vehicles with the best predicted reliability in the overall Consumer Reports study. American manufacturers had six vehicles -- including the Ford Fusion, the Milan and the Lincoln Zephyr -- all from Ford Motor Company. Maintaining that success for Ford, and the ability of General Motors Corporation (NYSE:GM) to get on board will be critical in the next three to four years if American carmakers want to build an image of quality and reliability in the face of those ratings from competitors like Toyota Motor Corporation (NYSE:TM) Honda Motor Co. Ltd. (NYSE:HMS) and Daimler-Chrysler (NYSE:DCX).

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Last updated: November 27, 2009: 03:05 AM

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