Reuters logo
UPDATE 2-Energizer quarterly profit falls, misses view
November 3, 2009 / 1:20 PM / in 8 years

UPDATE 2-Energizer quarterly profit falls, misses view

* Q4 adjusted EPS $1.08 vs analysts view $1.16

* Sales fall 3.9 percent to $1.08 bln, beat Street view

* Says to increase advertising and promotional spending

* Low double-digit growth in earnings ex-items possible

* Shares fall 10 percent premarket (Adds analysts’ expectations, quarterly performance details)

CHICAGO, Nov 3 (Reuters) - Energizer Holdings Inc (ENR.N) posted a steeper-than-expected decline in quarterly profit, weighed down by charges related to job cuts and lower sales of its namesake batteries, and its shares fell 10 percent.

The maker of Energizer batteries, Schick razors and Playtex tampons said it could post low double-digit growth in earnings excluding items in fiscal 2010, as it steps up advertising and promotional spending behind its brands.

The company said it plans to significantly increase spending this year after cutting back in fiscal 2009 due to the recession and the impact of foreign currency fluctuations.

Energizer earned $37.1 million, or 53 cents per share, in the fiscal fourth quarter that ended Sept. 30, down from $99.1 million, or $1.67 per share, a year earlier.

Excluding items, Energizer earned $1.08 per share, falling short of analysts’ average forecast of $1.16, according to Thomson Reuters I/B/E/S.

Its shares fell 10 percent to $54.22 in premarket trading.

Sales fell 3.9 percent to $1.08 billion, topping analysts’ forecast of $1.06 billion.

The household products segment, which includes batteries, saw sales plunge 14 percent. A year earlier, battery sales were boosted by a busy hurricane season and sales leading into the holiday season.

Energizer said that the battery category remains sluggish, particularly in the United States. About $55 million of shipments in the previous year did not repeat in the latest quarter, it said.

Sales in the personal care category, which includes razors, baby products, tampons and other items, rose 12 percent. That growth was driven by the June acquisition of the Skintimate and Edge shaving gels and creams business.

Reporting by Jessica Wohl, editing by Dave Zimmerman

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below