Jarden Q3 Net Rises 23.4 Percent as Housewares Fuels Sales
RYE, N.Y.-With a strong sales performance from its housewares unit, Jarden posted a 23.4 percent gain in third-quarter net income, to $94.9 million.
Overall net sales in the quarter, which ended on Sept. 30, were $1.8 billion, up 5.6 percent. Much of the top-line increase came from organic sales growth of 7.4 percent in the company's Consumer Solutions segment, in which are its housewares brands, and a 6.4 percent organic gain from its Branded Consumables unit. In a conference call yesterday to financial analysts, James Lillie, Jarden's CEO, said Consumer Solutions benefited from "balanced global growth" with new products and expansion into new geographic regions.
Lillie also said Consumer Solutions' results reflected a new organizational structure for the unit. In Jarden's first quarter, the unit was split into four subgroups focused on North America, Latin America, Asia-Pacific and Europe.
The corporation as a whole also benefited from its control on costs. Selling, general and administrative expenses rose by a meager 0.9 percent in dollars and fell 83 basis points as a percentage of sales, to 18.1 percent. Gross margin dropped 32 basis points to 29.1 percent.
This month brought the closing of Jarden's acquisition of Yankee Candle, and Lillie told the analysts that the Jarden and Yankee Candle teams have been working on revenue and cost synergies. He said the company is making "positive progress" in both its core business and in integrating Yankee Candle as it moves through the fourth quarter.