Spectrum Brands Doubles Net in Third Quarter; Personal Care, Small Appliances Make Gains
MADISON, Wis.-With its personal-care and small-appliance categories picking up sales ground, Spectrum Brands posted a gain of 105.2 percent in net income in its third quarter, to $58.7 million.
Much of the bottom-line increase came from strong expense controls. Selling, general and administrative expenses fell 6.6 percent in dollars and 213 basis points as a percentage of sales, to 21.9 percent.
Net sales in the quarter, which ended on July 1, rose 2.5 percent to $824.8 million. Included in the top line were a 2 percent increase in sales of personal-care products and a pickup of 1.8 percent in sales of small appliances. The two categories benefited from market-share gains, new products, product-line extensions, distribution gains and geographic expansion in the quarter.
Although net sales in Spectrum's Global Batteries & Appliances segment, which carries the personal-care and small-appliance lines, slipped 0.8 percent, the segment achieved a 3.5 percent pickup in profit, to $47.1 million.
Noting Spectrum's "solid third-quarter performance," CEO Dave Lumley said the company delivered improved results in spite of negative foreign-currency impacts, the challenging European economy and ongoing cost increases in commodities and the Asian supply chain.
For the full 2012 fiscal year, Spectrum said it expects to record net sales increases above the rate of the U.S. gross domestic product, and to report net income for the year versus a net loss in fiscal 2011.