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October 21, 2000 

BOSTON (AP) — The Gillette Co. fired its chairman and chief executive officer Thursday, even as it announced that the company had met analysts' earnings expectations for the third quarter. Gillette reported third-quarter net income of $350 million, down one percent from $352 million last year, meeting the 33 cents-per-share earnings consensus of analysts surveyed by First Call/Thomson Financial.

It also announced that Michael Hawley, chairman and CEO since April 1999, would be replaced by president and chief operating officer Edward F. DeGraan. DeGraan becomes acting CEO.

Richard R. Pivirotto, the senior director, will become non-executive chairman of the board, effective immediately.

``After careful consideration, the board has concluded that a change in management is in the best interest of Gillette,'' said Warren Buffett, chairman of the executive committee of Gillette's board of directors.

The company reported sales of $2.32 billion for the quarter, virtually unchanged from the same quarter last year but dragged down by currency exchange rates.

Over the first nine months of the year, net income was $477 million, down from $921 million in the first nine months of 1999.

Blade and Razor sales rose 3 percent over the previous year, while Duracell battery sales tumbled 9 percent. The company attributed the fall to tougher North American competition, softness in the European battery market and considerably higher marketing expenses.

Gillette shares closed Thursday up $4.31 to $32.63 on the New York Stock Exchange.