Net Loss Rises for Spectrum Brands in Third Quarter
MADISON, Wis.-For the third quarter which saw the closing of the company's merger with Russell Hobbs, Spectrum Brands reported a loss of $86.5 million, up from the third-quarter loss of $36.5 million last year.
The merger played a central role in the reddening in the company's bottom line, according to a Spectrum statement. Cash and non-cash charges and acquisition and integration costs contributed to a spike of 32 percent in total operating expenses for Spectrum. This offset a 10.9 percent gain in third-quarter net sales, which totaled $653.5 million and which included a 23 percent leap in shaving and grooming revenues in the Remington brand.
The merger with Russell Hobbs, formerly known as Salton Inc., closed on June 16 and brought small-appliance brands such as George Foreman, Black & Decker, Littermaid, Farberware and Toastmaster under the Spectrum brand umbrella. Annual sales for the company are expected to reach $3 billion.