Jarden Corp.’s Outdoor Solutions segment reported sales of $657.6 million in the third quarter ended Sept. 30, down 7.0 percent from the year earlier period as sales by its snowsports brands declined as expected in the wake of last winter’s disappointing weather.
Segment earnings fell 8.0 percent to $96.2 million from a year earlier, while operating earnings slipped 20.6 percent to $66.4 million.
Sales also declined at Jarden’s Consumer Solutions and Branded Consumable segments, which own dozens of household brands including the appliance brands Crock-Pot, Sunbeam, Mr. Coffee, Oster, Ball canning jars, Bee and Bicycle playing cards, First Alert home alarms and a variety of household cleaning products. As a whole, Jarden reported diluted earnings per share declined 3 percent to $1 on a 3.9 percent decline in sales, which reached $1.71 billion during the quarter.
“We achieved this performance despite the well known topline challenges we forecasted stemming from the warm winter of 2011-12,” said CEO James E. Lillie. “Notwithstanding the year over year weather related revenue impact, we are pleased that our strong gross margin performance also led to expanded segment earnings margins, and we remain on track to exceed last year's strong cash flow performance in 2012. We expect that the healthy momentum across each of our business segments should result in continued strength in fiscal 2013, with growth in line with our stated long-term objectives.”
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 September 30, 2012 | ||||||||||||||||||||||||
Net sales | $ | 657.6 | $ | 509.6 | $ | 459.0 | $ | 97.6 | $ | (17.9) | $ | 1,705.9 | $ | — | $ | 1,705.9 | ||||||||
Segment earnings (loss) | $ | 96.2 | $ | 79.0 | $ | 72.3 | $ | 12.9 | $ | — | $ | 260.4 | $ | (25.1) | $ | 235.3 | ||||||||
Adjustments to reconcile to reported operating earnings (loss): | ||||||||||||||||||||||||
Fair market value adjustments to inventory | (2.8) | (3.2) | — | — | — | (6.0) | — | (6.0) | ||||||||||||||||
Acquisition-related and other costs | (3.9) | (1.6) | (1.4) | — | — | (6.9) | (5.6) | (12.5) | ||||||||||||||||
Reorganization costs, net | (9.3) | — | — | — | — | (9.3) | — | (9.3) | ||||||||||||||||
Depreciation and amortization | (13.8) | (10.2) | (10.8) | (3.0) | — | (37.8) | (0.9) | (38.7) | ||||||||||||||||
Operating earnings (loss) | $ | 66.4 | $ | 64.0 | $ | 60.1 | $ | 9.9 | $ | — | $ | 200.4 | $ | (31.6) | $ | 168.8 | ||||||||
Outdoor Solutions | Consumer Solutions | Branded Consumables | Process Solutions | Intercompany | Total Operating Segments | Corporate/ Unallocated | Consolidated | |||||||||||||||||
Three months ended September 30, 2011 | ||||||||||||||||||||||||
Net sales | $ | 707.3 | $ | 522.4 | $ | 477.8 | $ | 92.4 | $ | (15.2) | $ | 1,784.7 | $ | — | $ | 1,784.7 | ||||||||
Segment earnings (loss) | $ | 104.6 | $ | 74.7 | $ | 76.2 | $ | 7.7 | $ | — | $ | 263.2 | $ | (23.9) | $ | 239.3 | ||||||||
Adjustments to reconcile to reported operating earnings (loss): | ||||||||||||||||||||||||
Fair value adjustment to inventory | — | — | (1.6) | |||||||||||||||||||||
