Jarden: From Loss to Profit in First Quarter
RYE, N.Y.-Jarden began its 2011 fiscal year by transforming a $59 million net loss from last year's first quarter into $19 million in net income this year.
The bottom-line figures from both periods included a number of adjustments and non-cash charges related to acquisitions, the devaluation of the Venezuelan bolivar and the change of the functional currency for the company's Venezuelan subsidiary from the bolivar to the U.S. dollar. Factoring these out, Jarden's first quarter net profit rose 59 percent to $35.4 million.
In addition, Jarden posted a 25 percent gain in net sales to $1.5 billion in the quarter, which ended on March 31. "We saw sales growth across each of our business segments, led by 6 percent organic growth in Jarden Outdoor Solutions," said Martin Franklin, chairman and CEO.
Jarden also picked up 109 basis points in its gross margin, to 27.1 percent--"primarily due to new product introductions, efficiencies in our supply-chain and procurement functions, and contributions from acquisitions that we completed in 2010," Franklin said. Last year, Jarden acquired the Mapa Spondex baby-care and home-care businesses, and Quickie Manufacturing, the cleaning-products company.
On a dollar basis, selling, general and administrative expenses fell 7.3 percent. SG&A also shed 730 basis points as a percentage of sales to 21.1 percent.
"As we continue to expand sales internationally, on the manufacturing front we have for the first time in a long while brought manufacturing of two of our product lines back from Asia to the United States," Franklin said. "I believe that we are witnessing the end of a 30-year trend of relocating manufacturing (and therefore jobs) from the Americas to Asia."