Jarden Corporation is reporting that first quarter net sales for its Outdoor Solutions segment, which includes Coleman, Pure Fishing, K2 Sports and Rawlings businesses, fell 10.2% to $591.3 million in the first quarter from $658.3 million in the year-ago period. Segment operating income fell 28.1% to $26.6 million in Q1, compared to $37.0 million in the 2008 first quarter.
Excluding acquisition and integrated-related expenses, depreciation and amortization, segment earnings would have declined 12.3% to $51.9 million, compared to $59.2 million in Q1 2008.
Total Jarden Corp. net sales decreased 6.4% to $1.1 billion compared to $1.2 billion for the year-ago period. The comapny said approximately $54 million of the $78 million decrease in net sales was due to foreign exchange fluctuations between the periods. Jarden posted net income of $8.9 million, or 12 cents per diluted share, compared to a net income of $4.7 million, or 6 cents per diluted share, in the quarter ended March 31, 2008.
On a non-GAAP basis, adjusted net income was $18.4 million, or 24 cents per diluted share, for the quarter ended March 31, 2009, compared to $16.5 million, or 22 cents per diluted share, for the quarter ended March 31, 2008.
For the quarter ended March 31, 2009, adjustments to net income consist of $9.4 million of reorganization and acquisition-related integration costs in the Outdoor Solutions segment and $3.9 million of amortization of acquired intangible assets. Also, included in the adjustments to net income for the quarter ended March 31, 2009 is the tax provision adjustment of $3.8 million which reflects the normalization of the adjusted results to the Companys estimated 36% effective tax rate.
For the quarter ended March 31, 2008, adjustments to net income consist of $10.7 million of reorganization and acquisition-related integration costs and $4.0 million of amortization of acquired intangible assets. Also, included in the adjustments to net income for the quarter ended March 31, 2008 is the tax provision adjustment of $2.9 million which reflects the normalization of the adjusted results to the companys estimated 36% effective tax rate.
“As noted in the pre-release we issued last week, the first quarter supported our view that Jardens diversified portfolio of primarily market leading brands is better positioned to weather the current economic environment than many of our competitors,” said Martin E. Franklin, Chairman and Chief Executive Officer of Jarden Corporation. “For the first quarter, we had better than expected sales, solid margins, net income and EPS growth, record cash flow and excellent working capital improvements, producing a strong overall quarter in a very tough macro-economic environment. We were particularly pleased with the organic sales growth within our Consumer Solutions segment, as it was driven from our domestic as well as international businesses.”
