Jarden Posts $4.4 Million Net Loss in Q1
RYE, N.Y.-A number of adjustments and one-time charges put Jarden's bottom line in the red in its fiscal first quarter ending on March 31.
The company reported a net loss of $4.4 million, putting a damper on a quarter in which the company achieved record net sales of $1.6 billion. Minus the one-time postings--which included inventory charged to cost of sales, charges for devaluation of currencies, amortizations of several items and a loss related to the extinguishment of debt--Jarden's net income was $33.1 million in the quarter, down 20.8 percent from the adjusted net income of last year's first quarter.
The company's net sales finished 5.7 percent ahead of last year. Included in the overall performance was a net sales pickup of 4.4 percent in its Consumer Solutions unit, which includes Jarden's housewares products. This segment also posted operating income of $37.5 million in the quarter, up 2.7 percent.
Gross margin for the company as a whole finished dead even with last year's first quarter at 28.1 percent. Selling, general and administrative expenses rose 21.6 percent in dollars and 119 basis points as a percentage of sales, to 24.5 percent.
Martin Franklin, Jarden's executive chairman, said the company's first-quarter sales growth positions the company to achieve its 2013 financial goals. "The foundation for our positive sales growth remains our commitment to brand and product-development spending, which in turn leads to innovative new products," Franklin said.