Jarden Corp. said it expects to report record fourth-quarter performance, although it appears growth slowed substantially from the year ago when abundant snow stimulated re-orders for the company’s K2, Marker and Volkl ski equipment and Marmot outerwear.
JAH said it expects revenue of $1.72 to $1.74 billion for the fourth quarter of 2011. While that’s in line with analysts’ estimates, it represents growth of just 1 to 2 percent, down from 7 percent organic growth in the year ago quarter. JAH said it expects revenues to come in at $6.68 billion for the full year, up 11 percent from 2010, when organic sales grew 17 percent, according to preliminary estimates released last week.
Earnings from the companies three segments Outdoor Solutions, Consumer Solutions and Branded Consumables – are expected to reach $205 to $210 million and $785 to $790 million for the fourth quarter and the full year, respectively. Segment earnings for the fourth quarter of 2010 were $187.1 million and $799.2 million respectively.
“Based on preliminary results, our record fourth quarter performance capped off another record year for Jarden in terms of both revenue and segment earnings, despite the mild weather experienced in the fourth quarter,” said Martin E. Franklin, executive chairman of Jarden.
The company noted that the financial results are preliminary and subject to the completion of its year-end audit process. Jarden plans to discuss its fourth quarter and full year 2011 results and the outlook for 2012 on its earnings conference call scheduled for Feb. 15, 2012.
Jarden also announced it will suspend its dividend following its January distribution payment and instead accelerate its stock buy-back program in a move designed to better reward its shareholders.
Jarden Corp.’s other Outdoor Solutions brands include Abu Garcia, Aero, Berkley, Campingaz, ExOfficio, Fenwick, Gulp!, Mitchell, Penn, Rawlings, Shakespeare, Stearns, Stren, Trilene and Zoot.
