Jarden Net Up 12.5 Percent in Third Quarter
RYE, N.Y.-A healthy sales gain helped offset rising expenses to produce a 12.5 percent increase in third-quarter net income for Jarden, to a record $90.7 million.
Net sales rose 11.4 percent to $1.8 billion in the quarter, which ended on Sept. 30. Much of the top-line boost came from Jarden's Outdoor Solutions and Branded Consumables segments. Consumer Solutions, Jarden's housewares unit, experienced a decline of 2.2 percent in sales, to $522.4 million, and was flat in operating earnings at $66.6 million.
In a conference call yesterday to financial analysts, James Lillie, Jarden's CEO, said Consumer Solutions' performance reflected the "sluggish" market for small appliances in general, and that the company expects sales in this segment will be flat for the year as a whole. Positive signs for the unit in the third quarter included new product rollouts such as the Oster personal blender and the Mr. Coffee Power Serve, along with positive results in business from Canada and Latin America.
Gross margin for Jarden as a whole rose 39 basis points to 29 percent. Selling, general and administrative expenses increased 16 percent on a dollar basis and 72 basis points as a percentage of sales, to 18.3 percent.
In the conference call, Martin Franklin, executive chairman, said Jarden, looking beyond the third quarter, is comfortable that "our core strengths position us well to prospect even if the economic environment continues to be turbulent and macro growth indicators remain sluggish."