2001 relative to the same quarter last year. In addition, retail inven- tory levels at December 31, 1999, were above historical norms due to Y2K-driven ordering which further increased Energizer’s sales in the first quarter of fiscal 2000. As such, Energizer anticipates report- ing significantly lower year over year sales for its first fiscal quarter of 2001. The Asia Pacific area experienced significant currency devaluations and economic contraction in 1998 and early 1999, with more stable trends emerging more recently in most markets. Changes in the value of local currencies or economic contractions in this area  may continue to impact segment profitability. In particular, recent currency declines in Australia, New Zealand and the Philippines have been unfavorable to Energizer during 2000 and into 2001. The euro and certain other European currencies are at or near historical low points relative to the U.S. dollar. Currency devaluation was a significant unfavorable factor in 2000 and continues into 2001. Net earnings were $181.4 for the year ended September 30, 2000, compared to $80.0 in 1999. Earnings per share were $1.89 and  $1.88 on a basic and diluted basis, respectively, compared to  earnings per basic and diluted share of $.78 in the prior year. Included in net earnings are earnings from continuing operations  of $180.2 and $159.8 in 2000 and 1999, respectively. Current  year net earnings include a net gain on disposition of discontinued operations of $1.2 related to the final settlement of the sale of  discontinued operations. Fiscal 1999 results include a net loss from discontinued operations of $5.6 and a net loss on the disposition of discontinued operations of $74.2. Net sales increased $42.0 or 2% in 2000 compared to 1999  primarily on growth in North America, partially offset by declines  in Europe. In 1999, sales decreased $49.5 or 3% as declines in Europe and, to a lesser extent, the Asia Pacific and South and Central America regions were partially offset by increases in North America. See comments on sales changes by region in the Segment Results section below. Net earnings were $164.7, or $1.62 per basic and diluted share, for the year ended September 30, 1998. Included in 1998 net earnings  are earnings from continuing operations of $208.2 and a net loss from discontinued operations of $43.5. Earnings from continuing operations increased $20.4, or $.32 and $.31 per basic and diluted share, respectively, in 2000. Included in 2000 results are costs related to the spin-off of $5.5 pretax, $3.3  after-tax, loss on disposition of Spanish affiliate of $15.7, and capi- tal loss tax benefits of $24.4. Fiscal 1999 results include provisions for restructuring of $9.9 pretax, $8.3 after-tax, and capital loss tax benefits of $16.6. Excluding these items, earnings from continuing Gross margin dollars increased $65.2 or 7% in 2000 on increases in North America and Asia Pacific, partially offset by declines in Europe. Gross margin percentage improved 2.4 percentage points  in 2000 to 49.1% on higher volume and lower production costs in North America and Asia as well as lower costs in South and Central America. Gross margin dollars declined $43.0 or 5% in 1999 on lower sales and lower margin percentage. The margin percentage in 1999 was off 1.0 percentage point to 46.7% compared to 1998 with decreases in all regions except North America.  Discontinued operations consist of Energizer’s worldwide recharge- able Original Equipment Manufacturers’ (OEM) battery business.  In March 1999, the Board of Directors of Ralston announced its intention to exit this business to allow Energizer to focus on its  primary battery business. On November 1, 1999, this business  was sold to Moltech Corporation for approximately $20.0. Earnings from continuing operations decreased $48.4, or $.49  per basic and diluted share, in 1999. Included in both periods are  provisions for restructuring and capital loss tax benefits. Excluding these items, earnings from continuing operations decreased $21.1, or $.22 per basic and diluted share, in 1999. This decrease is pri- marily attributable to declines in the Europe and Asia Pacific areas partially offset by increases in North America. operations increased $23.3, or $.35 and $.34 per basic and diluted share, respectively, in 2000. This increase is primarily attributable  to improved operating results in North America and Asia Pacific and lower corporate overhead, partially offset by higher interest expense on the debt assumed as part of the spin-off from Ralston. OPERATING RESULTS Net Sales HIGHLIGHTS Gross Margin 11