Spectrum Global Batteries & Appliances Q1 Net Up 1.2 Percent
MIDDLETON, Wis.-In spite of weak sales of small appliances and batteries, Spectrum Brands' Global Batteries & Appliances unit posted an increase of 1.2 percent in adjusted net income, to $93.1 million, in the parent company's fiscal first quarter.
Net sales in the unit slipped 1 percent to $659.3 million in the quarter, which ended on Dec. 29. This included a 3.3 percent drop in sales of small appliances and a decrease of 2.4 percent in battery sales.
Much of the falloff in small appliances occurred in the North American market, because of competitor discounting at a major retailer (unnamed in a Spectrum statement) and the timing of some holiday shipments between last year's fiscal fourth quarter and this year's fiscal first quarter.
Net sales of personal-care products did pick up 1.8 percent, thanks to what Spectrum described as "strong revenue growth" in Europe and Latin America. This was somewhat offset by reduced net sales in North America.
The unit's performance was part and parcel of a first quarter in which Spectrum transformed a net loss of $13.4 million from last year's quarter to net income of $54.3 million this year. Net sales jumped 26.5 percent to set a new record of $1.1 billion.