Spectrum Brands loss widens in Q2
Spectrum Brands reported a second quarter net loss of $41.2 million. This compared with a net loss of $28.7 million in the year-ago quarter.
The Madison, Wis.-based consumer products company -- including such brands as Rayovac and George Foreman Grills -- purchased Stanley’s hardware and home improvement (HHI) segment last year. Sales were $987.8 million for the three months ended March 31, up from $746.3 million.
CEO Dave Lumley said: "Our markets remain challenged by a difficult macroeconomic environment, highlighted by sluggish retail activity, tightening retail inventory management and frankly, a stunned consumer. These consumers are juggling higher taxes, generally stagnant wages and higher everyday expenses."
In its first full quarter with our company, HHI reported second-quarter net sales and adjusted EBITDA growth of 11% each versus the prior year. Sales grew primarily from strength in U.S. residential security and plumbing and some because of timing issues, the company said.
In its first full quarter since its acquisition by Spectrum Brands on Dec. 17, 2012, the Hardware & Home Improvement (HHI) segment recorded net sales of $256.7 million, an increase of 10.6% compared with $232.2 million as if combined with Spectrum Brands in the year-ago quarter.
Other boosts came from “a slightly better U.S. housing market and initial successes in a few targeted growth areas, such as our SmartKey product line, the emerging home automation market, home improvement channels and international,” Lumley said.
Global battery sales for the second quarter were $199.7 million, a 2.6% decrease compared with $205.1 million for the second quarter of fiscal 2012.
The Global Pet Supplies segment reported net sales of $160.5 million for the second quarter of fiscal 2013, an increase of 2.6% versus $156.5 million in the second quarter of fiscal 2012.