Spectrum Appliance-Unit Q3 Profit Climbs
Posted on July 30, 2014 by
MIDDLETON, Wis.-Increased sales of personal-care products and batteries helped boost net income for Spectrum Brands' Global Batteries and Appliances Unit by 9.4 percent, to $49.1 million, in the company's fiscal third quarter ending on June 29.
Net sales in the global personal-care product category (represented by the Remington brand) edged up 1.8 percent in the quarter, to $117.6 million. Sales of batteries on a global basis improved 2.9 percent to $213.3 million. These two gains offset a drop of 2.9 percent in global sales of small appliances (represented by the Russell Hobbs family of brands), to $163.9 million.
Overall, Spectrum Brands posted a 116.1 percent gain in third-quarter net income, to $78 million. Sales increased 3.6 percent to $1.1 billion. Dave Lumley, Spectrum's CEO, noted that the third-quarter results set a record for the company, following on record performances in both of the first two quarters. "We have delivered solid, consistent sales growth every quarter of this year of about 3.5 percent in what we believe remains a challenging global environment with very sluggish consumer (point-of-sale) and retail store traffic, especially in North America, along with tight retailer inventory levels and reorder rates," Lumley said.
Lumley added that Spectrum's focus going forward will be on "delivering another year of steady, measured financial improvement." He said the company will increase its investment to partner more closely with retailers' e-commerce platforms. "Our e-commerce sales are showing solid growth so far this year, especially in our personal-care, small-appliance and pet businesses," he said.