exv99w1
Exhibit 99.1
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Energizer Holdings, Inc.
533 Maryville University Dr.
St. Louis, MO 63141 |
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FOR IMMEDIATE RELEASE
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Company Contact |
April 27, 2011
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Jacqueline E. Burwitz |
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Vice President, |
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Investor Relations |
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314-985-2169 |
ENERGIZER HOLDINGS, INC. ANNOUNCES SECOND QUARTER RESULTS
AND REAFFIRMS FISCAL 2011 EARNINGS GUIDANCE
St. Louis, Missouri, April 27, 2011 Energizer Holdings, Inc., [NYSE: ENR], today announced
results of its second quarter ended March 31, 2011. Net earnings for the quarter were $39.1
million, or $0.55 per diluted share, versus net earnings of $88.5 million, or $1.25 per diluted
share in the second quarter of fiscal 2010. The current quarter includes the following:
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charges related to Household Products restructuring activities of $30.0 million,
after-tax, or $0.42 per diluted share; |
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charges of $2.8 million, after-tax, or $0.04 per diluted share, related to other
realignment activities, including integration expenses associated with American Safety
Razor (ASR); |
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an after-tax expense of $2.7 million, or $0.04 per diluted share, related to the
write-up and subsequent sale of inventory purchased in the ASR acquisition; and |
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a gain of $1.0 million, after-tax, or $0.01 per diluted share, related to an adjustment
of the devaluation charge for our Venezuela affiliate under highly inflationary
accounting. |
Last years second quarter included:
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a gain of $2.8 million after-tax, or $0.03 per diluted share due primarily to an
adjustment of the devaluation charge for our Venezuela affiliate; and |
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charges related to other business realignment and integration activities of $1.1
million, after-tax, or $0.01 per diluted share. |
Our year of investment continues as planned, said Ward Klein, Chief Executive Officer. We are
taking appropriate actions to right size our Household Products division production platform, fund
the expansion of our global Wet Shave business, and execute various international market and new
product initiatives. We believe these investments and other initiatives will serve as the
foundation for establishing earnings momentum in 2012 and beyond.
Net sales for the quarter ended March 31, 2011, increased $100.2 million as higher sales in Wet
Shave, including the impact of ASR and Skin Care were partially offset by declines in Household
Products and Feminine Care. For the quarter ended March 31, 2011, gross margin as a percent of net
sales was 45.5% compared with 47.8% in the prior year quarter. Increased coupon and trade
promotional activity in support of the Schick Hydro launch negatively impacted gross margin by
approximately 180 basis points. In addition, the inclusion of value priced ASR products for the
full quarter reduced comparative gross margin by approximately 150 basis points. This was
partially offset by favorable product mix and a favorable sun care returns adjustment, which
combined added approximately 80 basis points in the current quarter. Advertising and Promotion
(A&P) as a percent of net sales was 9.7% for the quarter, up 150 basis points, due to spending
support for the Schick Hydro launch.
For the quarter, selling, general and administrative expense (SG&A) was $216.8 million, up $29.0
million, as compared to last years second quarter. This included approximately $12 million of ASR
operating, amortization and integration expenses, which were not present in the prior year period.
Excluding these costs, SG&A increased by approximately $17 million, or 9%, due to higher spending
to
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support growth initiatives and the Schick Hydro launch, and higher corporate expenses including
increased pension costs due to lower market discount rates, higher stock award amortization and
increased legal expenses.
Net earnings for the six months ended March 31, 2011 were $149.5 million, or $2.11 per diluted
share, versus net earnings of $214.2 million, or $3.04 per diluted share in the same period of
fiscal 2010. The current six months include the following:
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charges related to Household Products restructuring activities of $31.2 million,
after-tax, or $0.44 per diluted share, |
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charges of $6.9 million, after-tax, or $0.09 per diluted share, related to ASR
transaction and integration costs, and other realignment activities, |
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an after-tax expense of $4.4 million, or $0.06 per diluted share, related to the
write-up and subsequent sale of inventory purchased in the ASR acquisition; and |
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a loss of $1.3 million, after-tax, or $0.02 per diluted share, related to an adjustment
of the devaluation charge for our Venezuela affiliate under highly inflationary
accounting. |
Last years six month period included:
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a charge of $22.7 million after-tax, or $0.32 per diluted share, related to the
devaluation of our Venezuela affiliates U.S. dollar intercompany payable from the
official rate to the parallel rate and the negative impact of highly inflationary
accounting, which was effective beginning in the second quarter of fiscal 2010 for
Venezuela; and |
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integration and other realignment costs of $5.6 million, after-tax, or $0.08 per
diluted share. |
Net sales for the six months ended March 31, 2011, increased $100.6 million as higher sales in Wet
Shave of approximately $160 million, including approximately $99 million for ASR, were partially
offset by a decline in Household Products and Feminine Care. For the six months ended March 31,
2011, gross margin as a
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percent of net sales was 46.4% compared with 47.7% in the prior year quarter. Increased coupon and
trade promotional activity in support of the Schick Hydro launch negatively impacted gross margin
by approximately 140 basis points. In addition, the inclusion of value priced ASR products since
acquisition reduced comparative gross margin by approximately 100 basis points. This was
partially offset by favorable product mix and the favorable sun care returns adjustment noted
above. A&P as a percent of net sales was 10.4% for the six months in fiscal 2011, up 260 basis
points from the prior year period due to spending support for the Schick Hydro launch.
SG&A was $423.5 million for the six months ended March 31, 2011, up $51.7 million, as compared to
the same six month period in fiscal 2010. This increase included approximately $14 million of ASR
operating expenses and amortization and approximately $8 million of ASR transaction and integration
costs. Excluding the impact of ASR, SG&A increased approximately $30 million, or 8%, driven by the
reasons noted above and the impact of higher deferred compensation-related costs due to increased
market values of the underlying securities.
For the following discussion regarding operating results, including the discussion of segment
results for the quarter, all references to the impact of currencies are exclusive of Venezuela.
The impact of the Venezuela devaluation and related economic conditions is disclosed separately
when it is believed to be a relevant factor to understanding the operating results.
Household Products
For the quarter, net sales were $424.9 million, down $16.9 million, or 4%, versus the same quarter
last year including the favorable impacts of currencies and Venezuela. Exclusive of currencies and
Venezuela results, net sales were down approximately $27 million, or 6%, for the quarter due
primarily to retail inventory de-stocking of holiday inventory from the prior quarter and increased
trade
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spending in the U.S. The shortfalls in the U.S. were partially offset by a strong comparative
quarter in many Asia and Latin America markets. The dollar value of the battery category in global
measured markets has continued a negative trend, down approximately 2% in our latest reported
twelve weeks data. The Company has taken steps in an attempt to restore value in the battery
category by implementing a price increase on C, D and 9V sizes and eliminating pack upsizing in the
U.S. effective March, 2011.
Segment profit for the quarter was $52.2 million, down $19.7 million, or 27%, versus the same
quarter last year including the favorable impacts of currencies and Venezuela. Exclusive of
currencies and Venezuela operating results, segment profit declined approximately $27 million, or
37%, due primarily to lower gross margin resulting from the decline in net sales noted above.
For the six months ended March 31, 2011, net sales were $1,093.4 million, down $52.4 million or 5%,
including approximately $9 million of favorable currencies, offset by lower net sales in Venezuela
of approximately $12 million as a result of the currency devaluation and unfavorable economic
conditions. Exclusive of Venezuela and the favorable impact of currencies, net sales were down 4%
due to the continued negative category value trends, primarily in the U.S.
Segment profit for the six months decreased $35.2 million or 14% including the favorable impact of
currencies and Venezuela. Exclusive of currencies and Venezuela operating results, segment profit
declined approximately $40 million, or 16%, due primarily to the margin impact of the lower sales
noted above and unfavorable raw material pricing, most notably in zinc and steel.
For the remainder of the fiscal year, we expect segment profit for Household Products to be below
year ago as category value is expected to continue to decline, raw material and commodity costs are
estimated to be unfavorable and we continue to invest in emerging market and technology
initiatives. These
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negative impacts are expected to be partially offset by favorable currencies and the benefits of
our previously announced U.S. price increase in C, D and 9V cell sizes, which should add $4 to $6
million in the next six months and the elimination of U.S. pack upsizing, which should reduce
product cost by $6 to $8 million in the back half of the year.
Our restructuring project, announced in the fourth quarter of fiscal 2010, remains on track as we
expect to incur approximately $75 to $85 million in restructuring costs, with the vast majority in
fiscal 2011, and generate annual savings of approximately $25 to $35 million, by the end of fiscal
2012. The second quarter of fiscal 2011 includes pre-tax restructuring charges of approximately
$37 million related primarily to the announced plant closures. However, cash flow for the project
was not material in the quarter.
Personal Care
Net Sales for the quarter were $610.4 million, up $117.1 million, or 24%, including approximately
$72 million of incremental sales from ASR and approximately $9 million of favorable currency.
Exclusive of the impact of ASR and currency, net sales increased approximately $36 million, or 7%.
Wet Shave sales increased 41% for the quarter. However, excluding ASR and $6 million of favorable
currencies, Wet Shave sales increased 13% due to:
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higher volumes from the launch of Schick Hydro mens systems and shave preparations, |
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higher sales of disposables as well as favorable price/mix from lower consumer
promotions, higher prices and favorable brand mix, and |
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higher womens sales driven by the launch of Intuition Plus in Europe and higher
Quattro for Women Trimmer sales. |
These gains were partially offset by declines in legacy mens systems products.
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Schick Hydro mens systems and shave preparations have now been launched in key markets, including
North America, Japan, Western Europe and other markets in Asia.
Skin Care sales increased 10% due to higher shipments of Wet Ones and higher sales of sun care
products driven by a favorable adjustment for prior season sun care returns, partially offset by
lower volumes due to timing of shipments in the early stages of the sun care season. Infant Care
sales were down 1% due to lower sales of bottles and cups, partially offset by higher sales of
Diaper Genie. Feminine Care sales decreased 12% on lower sales of Gentle Glide partially offset by
continued growth of Sport tampons.
Segment profit for the quarter was $123.3 million, up $7.8 million, or 7%, versus the same quarter
last year including the favorable impact of ASR segment profit of approximately $8 million and the
favorable impact of currencies of approximately $6 million. Net of these impacts, segment profit
was down approximately $6 million, or 5%, on higher gross margin from increased Wet Shave sales and
the favorable impact of the prior year sun care returns adjustment of $9 million, which were more
than offset by higher A&P spending in support of Schick Hydro.
For the six months ended March 31, 2011, net sales were $1,119.0 million, up $153.0 million or 16%.
This increase includes approximately $99 million of sales from ASR and favorable currencies of
approximately $8 million, which were partially offset by a decrease in Venezuela net sales of
approximately $12 million as a result of the currency devaluation and unfavorable economic
conditions. Excluding the impact of ASR and Venezuela, net sales increased 6%.
Wet Shave sales increased 27%, but this result was favorably impacted by ASR and favorable
currencies of approximately $5 million, partially offset by approximately $12 million of lower net
sales in Venezuela. Exclusive of these
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impacts, Wet Shave net sales increased 11% due to the launch of Schick Hydro mens systems and
shave preparations.
Skin Care sales were flat as lower shipments of Wet Ones and sun care were offset by the favorable
prior season sun care returns adjustment noted above. Infant Care sales were down 3% as higher
sales of Diaper Genie were more than offset by declines across the remainder of the product line.
Feminine Care sales decreased 8% on lower sales of Gentle Glide partially offset by continued
growth of Sport tampons.
Segment profit for the six months decreased $35.8 million or 15% including the favorable impact of
ASR of approximately $11 million and favorable currencies of approximately $10 million, partially
offset by a decrease in segment profit for Venezuela of approximately $4 million. Net of these
impacts, segment profit was down approximately $53 million or 22% due to increased A&P and overhead
spending in support of the Schick Hydro launch, partially offset by the favorable impact of the
prior season sun care returns adjustment noted above.
Looking forward, exclusive of the impact of ASR, we expect the incremental impact of the Schick
Hydro launch will drive a mid to high single digit growth in Personal Care net sales for the
remaining six months of fiscal 2011. We will anniversary the Schick Hydro launch during the third
fiscal quarter. Therefore, we believe that A&P spending as a percent of net sales as compared to
the prior year will begin to moderate over the course of the final six months of fiscal 2011. It
should be noted that Japan is an important wet shave market for Schick, and the impact of the
devastating events in Japan remain unclear.
Other Items
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Interest expense decreased $3.2 million for the quarter and $6.0 million for the six months due
primarily to lower outstanding debt. Other financing items increased $2.4 million for the quarter
due primarily to higher losses on foreign exchange hedging contracts in the current quarter. For
the six months, other financing items decreased $30.0 million, including approximately $24 million
in charges due to the currency devaluation and highly inflationary accounting in Venezuela in the
prior year six month period.
For the second quarter, the effective tax rate was 35.9%. The effective tax rate in the second
quarter was negatively impacted by the Household Products restructuring as the majority of the
costs incurred were in a lower tax jurisdiction. For the six months ended March 31, 2011, the
effective tax rate was 33.1%. Exclusive of the impact of the Household Products restructuring, the
effective tax rate for the current six months was 31.1%. The effective tax rate for the same six
month period in fiscal 2010 was 34.5%, but exclusive of the impact of the Venezuela devaluation
during this time period, the effective tax rate was 32.5%.
For the quarter, capital expenditures were approximately $23 million and depreciation was
approximately $40 million. For the current six months, capital expenditures were approximately $42
million and depreciation expense was $74 million.
2012 Compensation Target
With regards to compensation, the Nominating and Executive Compensation Committee, upon the
recommendation of management, has decided that the performance goals under the Companys executive
incentive compensation for fiscal 2012, which includes the annual bonus program and three year
equity awards, will be based on the higher fiscal 2010 earnings per share instead of the
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lower fiscal 2011 earnings per share. In making its decision, the Committee considered that
earnings per share for fiscal 2011 is expected to be negatively impacted by planned significant
investment in new products, the Household Products restructuring, investment in other long-term
growth initiatives and challenges in the battery business category. The Committee believes that
management should be rewarded based on improvements compared to the performance in fiscal 2010.
Performance targets, award amounts and other elements of the Companys executive incentive
compensation for fiscal 2012 will be set during the normal compensation committee process in the
fall. Further details regarding the Companys current compensation practices can be found in
Energizers proxy statement filed on December 10, 2010 with the Securities and Exchange Commission.
Outlook
In summary, we expect earnings per share for the full fiscal year to be in the range of $4.00 to
$4.20, which reflects the significant impact of the Household Products restructuring, including an
updated estimate of the related tax benefit and the negative impact of inventory step-up for ASR.
Excluding unusual items, which are primarily related to costs associated with the restructuring and
ASR integration, we reiterate that earnings per share for fiscal 2011 are expected to be in the
range of $5.10 to $5.30. While the impact of the disaster in Japan remains unclear, our current
estimate is that the modest accretion of ASR and the impact of the Companys repurchase of one
million shares in February will likely offset the impact of the Japan crisis for fiscal 2011. We
will continue to monitor this difficult situation as further trends develop. We expect earnings
per share, excluding unusuals, as described above, to be below a year ago for the third quarter,
with year-over-year improvement in the fourth quarter.
Webcast Information
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In conjunction with this announcement, the Company will hold an investor conference call
beginning at 10:00 a.m. ET today. The call will focus on second-quarter earnings, year-to-date
fiscal 2011 financial results and earnings guidance for Fiscal 2011. All interested parties may
access a live webcast of this conference call at www.energizer.com, under About the Company,
Investor Relations, and Webcasts and Presentations tabs or by using the following link:
https://www.theconferencingservice.com/prereg/key.process?key=P4ECEB9NN. For those unable to
participate during the live webcast, a replay will be available on www.energizer.com, under About
the Company, Investor Relations, and Webcasts and Presentations tabs, for three months.
# # #
Non-GAAP Financial Measures. While Energizer Holdings, Inc. reports financial results in
accordance with accounting principles generally accepted in the U.S. (GAAP), this press release
includes non-GAAP measures. These non-GAAP measures, such as EPS guidance, operating results and
other comparison changes (which exclude the impact of currencies and the results of operations in
Venezuela), the acquisition of ASR and related transaction costs, and the costs associated with the
restructuring, are not in accordance with, nor are they a substitute for, GAAP measures. The
Company believes these non-GAAP measures provide a more meaningful comparison to the corresponding
reported period and assist investors in performing analysis consistent with financial models
developed by research analysts. Investors should consider non-GAAP measures in addition to, not as
a substitute for, or superior to, the comparable GAAP measures.
Forward-Looking Statements. This document contains both historical and forward-looking statements.
Forward-looking statements are not based on historical facts but instead reflect our expectations,
estimates or projections concerning future results or events, including, without limitation,
statements regarding future earnings, investment or spending initiatives, the impact of recent
events in Japan, restructuring charges and cost savings related to our restructuring project, the
impact of the elimination of pack upsizing and certain price increases, anticipated advertising and
promotional spending, the estimated impact of foreign currency movements, the ASR acquisition, raw
material and commodity costs, category value and future volume, sales and growth in some of our
businesses. These statements generally can be identified by the use of forward-looking words or
phrases such as believe, expect, anticipate, may, could, intend, belief, estimate,
plan, likely, will, should or other similar words or phrases. These statements are not
guarantees of performance and are inherently subject to known and unknown risks, uncertainties and
assumptions that are difficult to predict and could
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cause our actual results, performance or achievements to differ materially from those expressed in
or indicated by those statements. We cannot assure you that any of our expectations, estimates or
projections will be achieved.
The forward-looking statements included in this document are only made as of the date of this
document and we disclaim any obligation to publicly update any forward-looking statement to reflect
subsequent events or circumstances.
Numerous factors could cause our actual results and events to differ materially from those
expressed or implied by forward-looking statements, including, without limitation:
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The success of new products and the ability to continually develop new products; |
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Energizers ability to improve operations and realize cost savings; |
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Energizers ability to continue planned advertising and other promotional spending may be
impacted by lower than anticipated cash flows, or by alternative investment opportunities; |
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The impact of the recent events in Japan; |
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Anticipating the impact of raw material and other commodity costs; |
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Energizers ability to predict consumer consumption trends with respect to the overall
battery category and Energizers other businesses; |
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The possibility that estimates related to the restructuring initiatives may change as
management develops and finalizes its plans; |
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Energizers ability to timely implement the strategic initiatives in a manner that will
positively impact our financial condition and results of operation; |
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The impact of the strategic initiatives on Energizers relationships with its employees,
its major customers and vendors; |
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Risks related to the integration of the acquisition of ASR; |
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Energizers effective tax rate for the year could be impacted by legislative or regulatory
changes by federal, state and local, and foreign taxing authorities, as well as by the
profitability or losses of Energizers various subsidiary operations in both high-tax and
low-tax countries; |
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Estimating the impact of foreign currency exchange rates and offsetting hedges on
Energizers profitability for the year with any degree of certainty; and |
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Prolonged recessionary conditions in key global markets where Energizer competes could
result in significantly greater local currency movements and correspondingly greater negative
impact on Energizer than what can be anticipated from the current spot rates. |
In addition, other risks and uncertainties not presently known to us or that we consider immaterial
could affect the accuracy of any such forward-looking statements.
The list of factors above is illustrative, but by no means exhaustive. All forward-looking
statements should be evaluated with the understanding of their inherent uncertainty. Additional
risks and uncertainties include those detailed from time to time in Energizers publicly filed
documents; including its annual report on Form 10-K for the year ended September 30, 2010.
ENERGIZER HOLDINGS, INC.
STATEMENT OF EARNINGS
(Condensed)
(In millions, except per share data Unaudited)
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Quarter Ended March 31, |
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Six Months Ended March 31, |
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2011 |
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2010 |
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2011 |
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2010 |
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Net sales |
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$ |
1,035.3 |
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$ |
935.1 |
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$ |
2,212.4 |
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$ |
2,111.8 |
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Cost of products sold |
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564.2 |
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487.9 |
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1,185.7 |
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1,104.4 |
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Gross profit |
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471.1 |
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447.2 |
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1,026.7 |
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1,007.4 |
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Selling, general and administrative expense |
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216.8 |
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187.8 |
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423.5 |
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371.8 |
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Advertising and promotion expense |
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100.3 |
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76.8 |
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229.0 |
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165.5 |
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Research and development expense |
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26.3 |
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23.5 |
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49.7 |
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44.9 |
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Household Products restructuring |
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36.7 |
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38.6 |
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Interest expense |
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29.1 |
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32.3 |
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58.3 |
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64.3 |
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Other financing expense, net |
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0.9 |
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(1.5 |
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4.1 |
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34.1 |
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Earnings before income taxes |
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61.0 |
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128.3 |
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223.5 |
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326.8 |
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Income tax provision |
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21.9 |
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39.8 |
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74.0 |
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112.6 |
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Net earnings |
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$ |
39.1 |
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$ |
88.5 |
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$ |
149.5 |
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$ |
214.2 |
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Earnings per share |
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Basic |
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$ |
0.56 |
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$ |
1.27 |
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$ |
2.13 |
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$ |
3.07 |
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Diluted |
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$ |
0.55 |
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$ |
1.25 |
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$ |
2.11 |
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$ |
3.04 |
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Weighted average shares of common stock Basic |
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70.1 |
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69.9 |
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70.3 |
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69.8 |
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Weighted average shares of common stock -
Diluted |
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70.8 |
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70.5 |
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71.0 |
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70.4 |
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See Accompanying Notes to Condensed Financial Statements
Energizer Holdings, Inc.
Notes to Condensed Financial Statements
March 31, 2011
(in millions, except per share data)
1. |
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Operating results for any quarter are not necessarily indicative of the results for any
other quarter or the full year. |
2. |
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Operations for the Company are managed via two major segments Household Products
(Battery and Lighting Products) and Personal Care (Wet Shave/Blades, Skin Care, Feminine
Care and Infant Care). On November 23, 2010, we completed the acquisition of American
Safety Razor (ASR). ASR is a leading global manufacturer of private label/value wet shaving
razors and blades, and industrial and specialty blades and will be a part of the Company s
Personal Care segment. Segment performance is evaluated based on segment operating profit,
exclusive of general corporate expenses, share-based compensation costs, costs associated
with most restructuring, integration or business realignment activities and amortization of
intangible assets. Financial items, such as interest income and expense and other financing
items, are managed on a global basis at the corporate level. |
|
|
|
The Companys operating model includes a combination of stand-alone and combined business
functions between the Household Products and Personal Care businesses, varying by country and
region of the world. Shared functions include product warehousing and distribution, various
transaction processing functions, and in some countries, combined sales forces and
management. The Company applies a fully allocated cost basis, in which shared business
functions are allocated between the businesses. Such allocations do not represent the costs
of such services if performed on a stand-alone basis. |
|
|
|
The reduction in gross margin associated with the write-up and subsequent sale of inventory
acquired in the acquisition of ASR, which was $4.3 for the quarter and $7.0 for the six
months ended March 31, 2011, respectively, is not reflected in the Personal Care segment, but
rather presented as a separate line item below segment profit, as it is a non-recurring item
directly associated with the ASR acquisition. Such presentation reflects managements view
on how segment results are evaluated. |
|
|
|
For the quarter and six months ended March 31, 2011, the Company recorded a gain of $1.0 and
a charge of $1.3, respectively, related to the change in the value of its net monetary assets
in Venezuela as a result of accounting for the translation of this affiliate under the
accounting rules governing a highly inflationary economy. This result was recorded using an
exchange rate of 5.6 Venezuelan Bolivar Fuerte to one U.S. dollar at March 31, 2011. In the
prior year quarter and six months, the Company recorded a gain of $1.3 and a charge of $24.2,
respectively, related to the devaluation of the exchange rate between the U.S. dollar and the
Venezuelan Bolivar Fuerte. These impacts, which are included in other financing on the
Consolidated Statements of Earnings (Condensed), are not considered in the evaluation of
segment profit. However, normal operating results in Venezuela, such as sales, gross margin
and spending, have been negatively impacted by translating at less favorable exchange rates
and by the impact of unfavorable economic conditions in the country. These operating results
remain part of the reported segment totals. The negative segment impacts of the Venezuela
devaluation and the unfavorable economic impact on operating results are discussed separately
in the press release when considered relevant to understanding the year-over-year
comparatives. |
|
|
|
Segment sales and profitability for the quarter and six months ended March 31, 2011 and 2010,
respectively, are presented below. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, |
|
|
Six Months Ended March 31, |
|
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Household Products |
|
$ |
424.9 |
|
|
$ |
441.8 |
|
|
$ |
1,093.4 |
|
|
$ |
1,145.8 |
|
Personal Care |
|
|
610.4 |
|
|
|
493.3 |
|
|
|
1,119.0 |
|
|
|
966.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales |
|
$ |
1,035.3 |
|
|
$ |
935.1 |
|
|
$ |
2,212.4 |
|
|
$ |
2,111.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Household Products |
|
$ |
52.2 |
|
|
$ |
71.9 |
|
|
$ |
215.5 |
|
|
$ |
250.7 |
|
Personal Care |
|
|
123.3 |
|
|
|
115.5 |
|
|
|
199.9 |
|
|
|
235.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit |
|
|
175.5 |
|
|
|
187.4 |
|
|
|
415.4 |
|
|
|
486.4 |
|
General corporate and other expenses |
|
|
(36.2 |
) |
|
|
(24.9 |
) |
|
|
(66.4 |
) |
|
|
(54.4 |
) |
Household Products restructuring |
|
|
(36.7 |
) |
|
|
|
|
|
|
(38.6 |
) |
|
|
|
|
Acquisition inventory valuation |
|
|
(4.3 |
) |
|
|
|
|
|
|
(7.0 |
) |
|
|
|
|
ASR transaction costs/integration |
|
|
(1.5 |
) |
|
|
|
|
|
|
(7.6 |
) |
|
|
|
|
Amortization |
|
|
(5.8 |
) |
|
|
(3.4 |
) |
|
|
(9.9 |
) |
|
|
(6.8 |
) |
Venezuela devaluation/other impacts |
|
|
1.0 |
|
|
|
1.3 |
|
|
|
(1.3 |
) |
|
|
(24.2 |
) |
Interest and other financing items |
|
|
(31.0 |
) |
|
|
(32.1 |
) |
|
|
(61.1 |
) |
|
|
(74.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings before income taxes |
|
$ |
61.0 |
|
|
$ |
128.3 |
|
|
$ |
223.5 |
|
|
$ |
326.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental product information is presented below for revenues from external customers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, |
|
|
Six Months Ended March 31, |
|
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alkaline batteries |
|
$ |
233.5 |
|
|
$ |
244.6 |
|
|
$ |
639.5 |
|
|
$ |
690.3 |
|
Other batteries and lighting products |
|
|
191.4 |
|
|
|
197.2 |
|
|
|
453.9 |
|
|
|
455.5 |
|
Wet Shave/Blades |
|
|
383.8 |
|
|
|
271.8 |
|
|
|
748.5 |
|
|
|
588.6 |
|
Skin Care |
|
|
128.9 |
|
|
|
117.3 |
|
|
|
181.4 |
|
|
|
177.1 |
|
Feminine Care |
|
|
46.0 |
|
|
|
52.2 |
|
|
|
90.3 |
|
|
|
98.4 |
|
Infant Care |
|
|
51.7 |
|
|
|
52.0 |
|
|
|
98.8 |
|
|
|
101.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net sales |
|
$ |
1,035.3 |
|
|
$ |
935.1 |
|
|
$ |
2,212.4 |
|
|
$ |
2,111.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. |
|
Basic earnings per share is based on the average number of common shares outstanding
during the period. Diluted earnings per share is based on the average number of shares
used for the basic earnings per share calculation, adjusted for the dilutive effect of
stock options and restricted stock equivalents. |
|
4. |
|
The General corporate and other expenses for the current and prior year quarter
include pre-tax charges of $0.5 and $1.6, respectively, and the current and prior year six
months include pretax charges of $3.2 and $8.4, respectively, related to integration and
certain other business realignment activities. |
|
5. |
|
The current quarter and six months ended March 31, 2011 includes pre-tax charges of
$36.7 and $38.6, respectively, related to the previously announced Household Products
restructuring plan. These costs were primarily the result of the announced closing of the
carbon zinc battery manufacturing facility in Cebu, Philippines and the alkaline battery
manufacturing facility in La Chaux De Fonds (LCF), Switzerland. These charges included
severance and termination related costs, accelerated depreciation on property, plant and
equipment and other related exit costs. These costs are included as a separate line item
on the Statement of Earnings (Condensed). |