Russell Hobbs Narrows Quarterly Loss as It Nears Merger With Spectrum
May 18, 2010,
MIRAMAR, Fla.-With its merger with Spectrum Brands coming closer to finalizing, Russell Hobbs stated that its net loss was $9.9 million for the quarter ending March 31, as compared to a net loss of $15.3 million for the same period of 2009.
The company, which changed to its current name from Salton Inc. late last year, said net sales for the quarter increased by 3.4 percent to $157.8 million. Gross profit for the quarter increased by 720 basis points to 33.6 percent, but operating expenses were up 10 percent. Russell Hobbs said that since 2007, when the company was formed in a merger of Salton and Applica, it has completed a number of integration, restructuring and cost-cutting efforts--including the elimination of about 80 underperforming brands and more than 1,000 SKUs.
For the 12 months ending on March 31, Russell Hobbs said its net loss was $3.2 million on net sales of $784.8 million. The company provided no figures for the comparable period last year.
The company also said the Spectrum merger is still on track to be closed in June, subject to the approval of Spectrum's stockholders and other "customary closing conditions."