The World's Only
Flashlight Industry News Site

Energizer Announces
First Quarter Financial Results

For the current quarter, net sales increased $134.2 million, or 13%, to $1,176.7 million

Energizer Holdings, Inc. Press Release (excerpted)

FlashlightNews.org - 1/26/2010


Click photos to enlarge

Energizer Solar Lantern

Energizer Solar Lantern

ST. LOUIS, Mo. - Energizer Holdings, Inc., (NYSE: ENR), today announced results of its first quarter ended December 31, 2009. Net earnings for the quarter were $125.7 million, or $1.78 per diluted share, versus net earnings of $111.0 million, or $1.88 per diluted share in the first fiscal quarter of 2009.

* a charge of $25.5 million, after-tax, or $0.36 per diluted share, related to the devaluation of our Venezuelan affiliate's U.S. dollar payable to the parallel rate; and

* charges related to other business realignment and integration activities of $4.5 million after-tax, or $0.07 per diluted share.

Last year's first quarter included integration and business realignment costs of $3.0 million, after-tax, or $0.05 per diluted share.

For the current quarter, net sales increased $134.2 million, or 13%, to $1,176.7 million. On a constant currency basis, sales increased by approximately $89 million, or 9%. Net sales in the Household Products division increased $56.0 million, or 9% on a reported basis, or approximately $30 million, up 5% on a constant currency basis. Net sales in Personal Care increased $78.2 million, or 20% on a reported basis, and up approximately $59 million, or 15%, on a constant currency basis. The Personal Care results included $34 million of net sales for the recently acquired Edge and Skintimate shave preparation brands. Gross margin for the current quarter was 47.6%. The first quarter gross margin percentage was negatively impacted by 30 basis points due to Venezuela. Segment profit increased $52.4 million, or 21%, from $246.6 to $299.0 million. Excluding the favorable impact of currency of approximately $16 million, segment profit increased approximately $36 million, or 15%.

"We had a strong first quarter, especially in light of the stagnant consumer environment," said Ward Klein, Chief Executive Officer. "In Household Products, we improved profitability versus a difficult first quarter last year, and our profit momentum continued in Personal Care, as a result of our innovation efforts and bolstered by the addition of the Edge and Skintimate shave preparation business. Nevertheless, we remain cautious about the remainder of the year, especially in Household Products, where negative battery category consumption trends continue."

Household Products

For the quarter, net sales were $704.0 million, up $56.0 million, or 9% versus the same quarter last year, including the impact of favorable currencies of approximately $26 million. Excluding the impact of favorable currencies, net sales increased approximately $30 million, or 5%, due to share gains, a more normalized shipment timing for the holidays and a soft prior year quarter comparative. While we were able to realize strong sales growth within the quarter, we believe that the premium alkaline category remains sluggish, down mid to high single digits as compared to the same quarter last year. Overall pricing and product mix was unfavorable $10 million driven by investments in North America and Europe, partially offset by price increases in other areas of the world.

Segment profit increased $23.6 million for the quarter including the impact of approximately $7 million of favorable currencies, the positive impact of higher volume and lower advertising and promotion expense.

Outlook

Looking ahead, despite the sales growth in the quarter, we remain cautious regarding the battery category as consumption remains sluggish and the effect of device trends on the battery category remains difficult to assess due to the economic downturn.

Previously, we expressed our intention to increase our investment in advertising and promotion and certain innovation and growth initiatives in fiscal 2010. This remains our objective. While advertising and promotion expense was lower on a dollar and as a percentage of net sales in the first quarter, we continue to track to an estimated advertising and promotion spend in the range of 12% of net sales for the full year of fiscal 2010.

To read the entire press release, including STATEMENTS OF EARNINGS, visit: phx.corporate-ir.net/phoenix.


Search for other press releases from Energizer





Current FlashlightNews Headlines
Translate