Jarden Results Break More Records in Second Quarter
RYE, N.Y.--A 92 percent gain in net income and an 8.2 percent increase in net sales propelled Jarden to new records in its second quarter, which ended on June 30.
The company's bottom line totaled $73.9 million in the quarter, while net sales reached $1.7 billion. The sales growth was driven by strong performances from both its Consumer Solutions segment, in which its housewares brands reside, and in its Outdoor Solutions unit. Jarden's acquisition of Quickie, the cleaning-products manufacturer, also provided a booster to sales in its Branded Consumables segment.
Gross margin rose 194 basis points to 28.5 percent. In a conference call to financial analysts yesterday (quoted from a transcript obtained from SeekingAlpha.com, James Lillie, Jarden's CEO, said each of the company's divisions has "worked aggressively" to offset increases in commodity prices and other costs to boost margins. Selling, general and administrative expenses were up 14 percent in dollars and 98 basis points as a percentage of sales, to 18.7 percent.
In yesterday's conference call, Ian Ashken, Jarden's vice chairman and chief financial officer, said the company is on track to achieve its target of organic sales growth of from 3 to 5 percent. Ashken also said while Jarden doesn't believe the country will slide back into a recession, it also doesn't anticipate that the economic recovery will be "quick and painless."