* Keeps full-year adj profit forecast of $7-$7.25/share
* 3rd-qtr net income falls 24 pct to $64.5 mln
* 3rd-qtr revenue rises 1.7 pct to $1.13 bln
* Shares rise as much as 5.3 pct
(Adds conference call comments, outlook, shares)
July 30 Energizer Holdings Inc said it
intends to spin off by next July its struggling household
products business, which includes Energizer and Eveready
Shares of the company, which reported an 11 percent sales
growth in its largest personal-care business, rose as much as
5.3 percent in early trading.
The company said in April it would split into two publicly
traded companies - one for household products and the other for
personal care products such as Schick razors and Banana Boat
Energizer said on Wednesday it expects sales in the
household products business to stabilize in the fourth quarter
as it raises spending on advertising and marketing.
Sales of Energizer's household products have been falling
for a year after Wal-Mart Stores Inc's warehouse unit
Sam's Club and discount store chain Family Dollar Stores Inc
ended contracts with the company.
Energizer does not make batteries for devices such as
tablets and smartphones, which has hurt its sales as demand for
rechargeable batteries bundled with mobile devices rises.
The business's contribution to total revenue slid to $411.7
million, or 36 percent of overall sales, in the third quarter,
compared to about 45 percent last year.
The company said on Wednesday it would spin off the
business, which also sells portable lights, in a tax-free
transaction to shareholders.
Energizer also maintained its full-year adjusted net income
forecast of $7-$7.25 per share.
Analysts on average were expecting $7.08 per share.
Net income for the third quarter fell to $64.5 million, or
$1.03 per share, from $87.2 million, or $1.38 per share, a year
Excluding items, Energizer earned $1.46 per share, missing
the average analyst estimate of $1.55, according to Thomson
Increased advertising and promotional spending and a higher
tax rate hurt earnings.
Revenue rose 1.7 percent to $1.13 billion, beating the
average estimate of $1.12 billion.
Sales from its personal care business were helped by strong
demand for women's razors and sunscreen products. It expects
personal care sales to be flat in the fourth quarter.
Energizer's shares were up 3 percent at $118.54 on the New
York Stock Exchange on Wednesday.
(Reporting by Ramkumar Iyer in Bangalore; Editing by Joyjeet
Das and Don Sebastian)