Jarden: From Loss to Profit in First Quarter

RYE, N.Y.-Jarden began its 2011 fiscal year by transforming a $59 million net loss from last year's first quarter into $19 million in net income this year.

The bottom-line figures from both periods included a number of adjustments and non-cash charges related to acquisitions, the devaluation of the Venezuelan bolivar and the change of the functional currency for the company's Venezuelan subsidiary from the bolivar to the U.S. dollar. Factoring these out, Jarden's first quarter net profit rose 59 percent to $35.4 million.

In addition, Jarden posted a 25 percent gain in net sales to $1.5 billion in the quarter, which ended on March 31. "We saw sales growth across each of our business segments, led by 6 percent organic growth in Jarden Outdoor Solutions," said Martin Franklin, chairman and CEO.

Jarden also picked up 109 basis points in its gross margin, to 27.1 percent--"primarily due to new product introductions, efficiencies in our supply-chain and procurement functions, and contributions from acquisitions that we completed in 2010," Franklin said. Last year, Jarden acquired the Mapa Spondex baby-care and home-care businesses, and Quickie Manufacturing, the cleaning-products company.

On a dollar basis, selling, general and administrative expenses fell 7.3 percent. SG&A also shed 730 basis points as a percentage of sales to 21.1 percent.

"As we continue to expand sales internationally, on the manufacturing front we have for the first time in a long while brought manufacturing of two of our product lines back from Asia to the United States," Franklin said. "I believe that we are witnessing the end of a 30-year trend of relocating manufacturing (and therefore jobs) from the Americas to Asia."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.