Jan 29 Energizer Holdings Inc, best
known for its batteries, cut its full-year profit forecast after
reporting lower-than-expected first-quarter results due to a 6
percent drop in organic sales in its personal care business.
The company's shares were down 6 percent at $96.45 on the
New York Stock Exchange on Wednesday. They fell as much as 10
"The organic sales decline in personal care was unexpected,"
BMO Capital Markets analyst Connie Maneaty said.
Energizer gets about two thirds of revenue from its personal
care products, such as Schick razors, Banana Boat sunscreen and
Chief Executive Ward Klein said heightened promotional
activity by rivals over the past year has hurt the consumer
demand and overall category volumes.
Energizer, which bought Johnson & Johnson's feminine
care brands in the United States, Canada and the Caribbean last
July, had said two U.S. retailers would stop selling its
Many of the negative trends in the personal care division
will continue at least in the second quarter, Klein said.
The company cut its full-year earnings forecast to $7-$7.25
per share from $7.25-$7.50. Analysts on average were expecting
$7.39, according to Thomson Reuters I/B/E/S.
Energizer said earnings fell to $107.9 million, or $1.71 per
share, in the quarter ended Dec. 31, from $129.8 million, or
$2.07 per share, a year earlier.
On an adjusted basis, the company earned $2.10 per share,
missing analysts' average forecast of $2.14.
Sales slipped 6.5 percent to $1.11 billion.
Energizer, which was spun off from Ralston Purina Co in
2000, has since then grown with the acquisitions of Schick
Wilkinson Sword, Playtex, the Edge and Skintimate shaving prep
business and American Safety Razor.
(Reporting by Aditi Shrivastava and Chris Peters in Bangalore;
Editing by Don Sebastian)