Remington, Russell Hobbs Provide Boost to Spectrum's Third Quarter
MADISON, Wis.--Sales of both Russell Hobbs and Remington products helped Spectrum Brands, their parent, to transform a third-quarter net loss of $86.5 million to net income of $28.6 million this year.
Sales of personal-care products, of which Remington is a large factor, rose 10.2 percent in the quarter, while Russell Hobbs products sales increased 1.3 percent. These played a key role as Spectrum's Global Batteries & Appliances segment, in which both units reside, posted increases of 31 percent in segment profit and 43 percent in sales. Net sales for Spectrum as a whole 23.1 percent to $804.6 million for the quarter, which ended on July 3.
Spectrum's operating expenses, while rising 11.2 percent in dollars, shed 287 basis points as a percentage of sales to 26.7 percent. The company also firmed its bottom line through a 202 percent reduction in interest expense.
"Our time has come," said Spectrum CEO Dave Lumley. "With distribution gains continuing in our business segments, major new retailer placements and the pipeline of new products and line extensions we have in place, we are generally outperforming our categories and competitors around the world."