Energizer Holdings Inc. Announces Unaudited Earnings Results for the First Quarter Ended December 31, 2013; Revises Earnings Guidance for the Fiscal 2014
January 29, 2014 at 12:46 pm
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Energizer Holdings Inc. announced unaudited earnings results for the first quarter ended December 31, 2013. For the quarter, the company reported net sales of $1,113.9 million compared with $1,192.5 million for the same period a year ago. This decrease is primarily driven by the previously disclosed loss of distribution within two U.S. retail customers in the household products segment, prior year hurricane sandy storm-related volumes that did not repeat in this fiscal year quarter, soft category dynamics across both segments, pricing controls and import restrictions in certain Latin American countries, (primarily Venezuela and Argentina) and unfavorable foreign currency rates. Incremental sales from the feminine care brands acquired on October 23, 2013, provided a partial offset to the aforementioned shortfalls. Earnings before income tax were $151.8 million compared with $188.7 million for the same period a year ago. Net earnings were $107.9 million or $1.71 per diluted share compared with $129.8 million or $2.07 per diluted share for the same period a year ago. Adjusted net earnings were $132.6 million or $2.10 per diluted share compared with $137.7 million or $2.20 per diluted share for the same period a year ago. First fiscal quarter results reflect the impact of the anticipated net sales shortfall within the household products segment, lower sales within the personal care segment, and the unfavorable impact of currencies. These shortfalls were partially offset by the continued benefit of cost savings from the 2013 restructuring project, the favorable impact of incremental gross profit from the recently acquired feminine care brands, and lower advertising and promotion spending. Capital spending in the quarter was approximately $20 million, an increase of $5 million versus the prior year quarter.
The company revised earnings guidance for the fiscal 2014. The company has lowered its financial outlook for adjusted net earnings per diluted share for fiscal 2014 to $7.00 to $7.25 and GAAP EPS to $5.70 to $6.10 per diluted share. Total company low single-digit net sales growth, including the impact of the feminine care acquisition, a decrease versus original outlook of mid single-digit net sales growth. Effective tax rate, excluding unusual items, in the range of 29% to 30%, consistent with original outlook.
Edgewell Personal Care Company is a manufacturer and marketer of personal care products. With operations in over 20 countries, its products are available in more than 50 countries. The Company has three segments: Wet Shave, Sun and Skin Care, and Feminine Care categories. Wet Shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Billie, Shave Guard and its custom brands group. It manufactures and distributes Schick and Wilkinson Sword razor systems, composed of razor handles and refillable blades, and disposable shave products for men and women. Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Bulldog, Jack Black, Cremo and Wet Ones brand names. It markets Sun Care products under the Banana Boat and Hawaiian Tropic brands. Feminine Care markets products under the Playtex, Stayfree, Carefree and o.b. brands. It offers tampons under the Playtex Gentle Glide 360, Playtex Sport, Playtex and o.b. brands, including the Playtex Sport.
Energizer Holdings Inc. Announces Unaudited Earnings Results for the First Quarter Ended December 31, 2013; Revises Earnings Guidance for the Fiscal 2014