Jarden Net Jumps in First Quarter
RYE, N.Y.-Jarden began its fiscal year 2012 with an 85 percent increase in unadjusted net income to $35.1 million. Factoring in adjustments to normalize its bottom line to its effective tax rate, net income totaled $40 million, up 13 percent over last year's first quarter.
Net sales for the consumer-products giant edged up 0.8 percent to $1.5 billion in the quarter, which ended on March 31. This included a gain of 0.3 percent in sales by the Consumer Solutions unit, which encompasses Jarden's housewares products.
In a conference call yesterday to financial analysts, Martin Franklin, Jarden's executive chairman, said first-quarter sales showed "strong positive momentum." Franklin emphasized the company's ongoing commitment to new product development and to expanding internationally, with Brazil, China and Southeast Asia presenting high-growth opportunities.
Gross margin in the quarter picked up 97 basis points on an unadjusted basis, finishing at 28.1 percent. Selling, general and administrative expenses rose 1.6 percent in dollars and 16 basis points as a percentage of sales, to 21.3 percent.
During the conference call, Jim Lillie, president and CEO, said Jarden is focused on organic growth of from 3 to 5 percent in net sales for all of 2012. The outlook for Consumer Solutions is positive, Lillie said, owing to new products such as the Mr. Coffee single-cup brewing system and a slate of new kitchen appliances under the Oster brand.