Spectrum Brands Slashes Second-Quarter Loss
MADISON, Wis.-Spectrum Brands reported a net loss for its fiscal second quarter of $28.7 million, down from last year's second-quarter net loss of $50.2 million.
Rising sales and lower expenses helped the company's bottom line. Net sales in the quarter, which ended on April 1, increased 7.6 percent to $746.3 million. This included a gain of 4.5 percent in Spectrum's Global Batteries & Appliances business, which in itself included a 7 percent increase in global personal-care products sales (including the Remington brand) and a pickup of 3.8 percent in sales of small electrics--a category that Spectrum entered with its acquisition of the Russell Hobbs business in 2010.
Selling, general and administrative expenses fell 1.8 percent in dollars and 223 basis points as a percentage of sales, to 25 percent. Gross margin declined 197 basis points to 34.8 percent, due to cost increases in commodities and the Asian supply chain, and changes in the product mix.
Dave Lumley, Spectrum's CEO, said the second-quarter results point to "another year of growth and shareholder value creation in fiscal 2012." Lumley said the second half of the year should bring more gains in sales and "a swing to net income from net loss."