Jarden Corp. reported that net sales at its Outdoor Solutions unit reached $747.3 million in the second quarter ended June 30, down 3.2 percent from the same period in 2011.
The segment, which owns the Coleman, Ex-Officio, K2, Market, Marmot, Penn, Rawlings, Volkl and several fishing brands, earned $95.7 million, down 19.5 percent from the year earlier quarter. Operating earnings declined 17.7 percent to $85.3 million.
Those results were offset by results at Jarden’s two other segments. Jarden Consumer Solutions segment owns a portfolio of small kitchen appliance brands such as Oster and Sunbeam, while its Branded Consumables Segment owns a variety of brands ranging from Diamond playing cards to First Alert fire and carbon monoxide alerts. Including those business, Jarden reported total net sales were flat at $1.67 billion. Corporate wide net income increased to $83.2 million compared to $73.9 million for the same period in 2011. Gross margin increased 110 basis points to 29.6% compared to gross margin of 28.5% for the same period in 2011.
“It is a pleasure to report that Jarden continued to deliver on its financial goals during the second quarter, while generating our second highest cash flow from operations for any second quarter,” said Martin E. Franklin, executive chairman. “We have just completed our three day global strategic planning meeting and I am extremely excited by our extensive line of new product offerings, which should be a key driver of growth over the next several years.
James E. Lillie, Chief Executive Officer commented, “We delivered strong organic growth during the quarter, marking our 11th consecutive quarter of achieving organic growth. Our strong sales performance in our Branded Consumables and Consumer Solutions segments reflects the advantages of Jarden's diversified business model, where the inevitable seasonal fluctuations in certain businesses in any particular quarter can typically be mitigated by the general positive momentum across many of our businesses. This top line performance, coupled with significant gross margin expansion, allowed us to report a record second quarter earnings. We look forward to carrying our positive momentum into the second half of the year.”
JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited)
(in millions)
Outdoor Solutions | Consumer Solutions | Branded Consumables | Process Solutions | Intercompany Eliminations (a) | Total Operating Segments | Corporate/ Unallocated | Consolidated | |||||||||||||||||
Three months ended June 30, 2012 | ||||||||||||||||||||||||
Net sales | $ | 747.3 | $ | 403.0 | $ | 439.1 | $ | 103.3 | $ | (17.1) | $ | 1,675.6 | $ | — | $ | 1,675.6 | ||||||||
Segment earnings (loss) | $ | 95.7 | $ | 53.4 | $ | 68.6 | $ | 14.4 | $ | — | $ | 232.1 | $ | (20.5) | $ | 211.6 | ||||||||
Adjustments to reconcile to reported | ||||||||||||||||||||||||
Depreciation and amortization | (10.4) | (8.6) | (11.6) | (3.7) | — | (34.3) | (1.0) | (35.3) | ||||||||||||||||
Operating earnings (loss) | $ | 85.3 | $ | 44.8 | $ | 57.0 | $ | 10.7 | $ | — | $ | 197.8 | $ | (21.5) | $ | 176.3 | ||||||||
Outdoor Solutions | Consumer Solutions | Branded Consumables | Process Solutions | Intercompany Eliminations (a) | Total Operating Segments | Corporate/ Unallocated | Consolidated | |||||||||||||||||
Three months ended June 30, 2011 | ||||||||||||||||||||||||
Net sales | $ | 772.8 | $ | 389.2 | $ | 434.1 | $ | 92.3 | $ | (14.6) | $ | 1,673.8 | $ | — | $ | 1,673.8 | ||||||||
Segment earnings (loss) | $ | 118.9 | $ | 51.0 | $ | 59.9 | $ | 9.6 | $ | — | $ | 239.4 | $ | (33.2) | $ | 206.2 | ||||||||
Adjustments to reconcile to reported | ||||||||||||||||||||||||
Depreciation and amortization | (15.3) | (7.5) | (14.9) | (3.0) | — | (40.7) | (0.6) | (41.3) | ||||||||||||||||
Operating earnings (loss) | $ | 103.6 | $ | 43.5 | $ | 45.0 | $ | 6.6 | $ | — | $ | 198.7 | $ | (33.8) | $ | 164.9 | ||||||||
