* Second-quarter adj earnings per share $1.60 vs est $1.90
* Second-quarter sales $1.06 bln vs est $1.11 bln
Aug 9 Lawn and garden products maker Scotts
Miracle-Gro Co posted quarterly results that missed
analysts' estimates, hurt by weakness in its soil and
fertilizers business and a fall in margins.
The company said consumer engagement began to decline in May
and June, and it expected growth to be slow looking ahead to
The company had warned in May its full-year earnings may
fall short of its previous estimate of $2.65 per share to $2.85
per share as demand for its potting soil and plant seeds failed
to take off during the peak gardening season.
Analyst William Chappell of Suntrust Robinson Humphrey said
though the company did not update its forecast range for 2012,
the starting point for an updated estimate would be around
Scotts Miracle-Gro, which sells everything from grass seeds
and fertilizers to related tools through retailers, plans to
increase prices and cut expenses to improve margins.
Third-quarter adjusted gross margin fell to 34.5 percent
from 37.9 percent a year ago, primarily hurt by higher freight
and commodity costs.
Net income for the third quarter fell to $93.3 million, or
$1.50 per share, from $111.6 million, or $1.69 per share, a year
Revenue was mostly flat at $1.06 billion.
Adjusted net income from continuing operations was $1.60 per
Analysts on average expected Scotts to earn $1.90 a share on
revenue of $1.11 billion, according to Thomson Reuters I/B/E/S.
Sales at its international business, which contributed about
18 percent to the company's revenue in 2011, fell 17 percent in
Chappell said the decline might be due to poor weather
trends and weak economic conditions.
Scotts Miracle-Gro's international brands include
Miracle-Gro, Evergreen, Fertiligene and Celaflor.
Shares of the Marysville, Ohio-based company, which have
fallen about 12 percent this year, closed at $41.39 on the New
York Stock Exchange on Thursday. They were down 9 percent at
$37.50 in after-market trade.