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UPDATE 2-Jarden profit beats view, sees sales growth
February 16, 2010 / 9:23 PM / in 8 years

UPDATE 2-Jarden profit beats view, sees sales growth

* Q4 adjusted EPS 77 cents vs Street’s 76 cents

* Q4 revenue up 3 percent

* Sees “healthy organic sales growth” in each unit in ‘10

* Shares close nearly 4 pct higher ahead earnings post (Adds CEO comments, background, byline)

By Alexandria Sage

SAN FRANCISCO, Feb 16 (Reuters) - Consumer products company Jarden Corp JAH.N results came in slightly ahead of Wall Street expectations on Tuesday, turning to a profit from a steep year-ago loss, and said it expects sales growth in each of its units in 2010.

Jarden, which sells products ranging from cookware to skis and playing cards, posted net income in its fourth quarter ended Dec. 31 of $1.2 million, or 1 cent per share, from a year-ago net loss of $170 million, or $2.28 per share.

Excluding a non-cash impairment charge against goodwill and intangible assets of $22.9 million, adjusted net income was $68.5 million, or 77 cents per share. In the year-ago period, that impairment charge was $283 million.

As previously announced, revenue rose 3 percent to $1.35 billion.

Analysts, on average, had been expecting adjusted earnings of 76 cents per share, according to Thomson Reuters I/B/E/S.

Rye, New York-based Jarden, owner of brands from Mr. Coffee to Crock-Pot and K2, said it expects “healthy organic sales growth” in each of its three consumer segments in 2010.

Last fall, Chief Executive Martin Franklin told Reuters he expects organic sales growth of 2 percent to 4 percent in 2010, excluding currency exchange swings and changes in commodities prices. He reiterated that claim on Tuesday.

“The demand has been on the whole more resilient for our business than some others and it’s been relatively healthy,” Franklin said on Monday.

With an average price of $30 for its products, Jarden has managed to appeal to consumers looking to entertain in their homes or cook their own food while saving money. Products geared to home canning and fishing, for example, had strong sales, Franklin said.

“We’ve grown shelf space in some categories that have shrunk and we have grown our business,” said Franklin, citing the small kitchen appliance category.

In December, Jarden said it would buy baby care and home care company Mapa Spontex for $500 million less debt to enter new product segments and beef up international sales. The company is owned by French energy concern Total S.A. (TOTF.PA).

The deal, expected to close in April, will be “mildly accretive in 2010 ... and substantially more in 2011,” Franklin said.

Jarden shares closed 3.9 percent higher at $31.55 on the New York Stock Exchange, ahead of the company posting its earnings. (Reporting by Alexandria Sage; Editing by Tim Dobbyn, Bernard Orr)

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