Charges Cut Jarden’s Fourth-Quarter Net by 55 Percent



RYE, N.Y.-One-time charges related to the rationalization of manufacturing facilities, reorganization and impairment of goodwill, intangibles and other assets reduced Jarden’s fourth-quarter net income by 55 percent, to $21.1 million.

Without these adjustments, Jarden’s fourth-quarter net increased by 10 percent to $84.4 million. Net sales for the quarter increased 3.2 percent to $1.7 billion, which included a 0.8 percent increase in sales for the company’s Consumer Solutions segment, which carries Jarden’s housewares products.

In a conference call to financial analysts yesterday, Jim Lillie, Jarden’s CEO, said Consumer Solutions sales were particularly strong in Latin America and Canada in the quarter. In addition, new and higher-margin products such as the Oster Volt Lithium Ion clipper in the pet category, the Mr. Coffee Power Serve and Mr. Coffee K-Cup products, Oster Personal Blenders and Crock-Pot Triple Dippers helped the segment’s performance.

Gross margin for the quarter fell 75 basis points to 26.6 percent. Selling, general and administrative expenses were down 3.6 percent in dollars and 125 basis points as a percentage of sales, to 17.7 percent.

For the fiscal year, Jarden’s net rose 92 percent to $204.7 million including the charges, and 17 percent factoring out the charges to $303.6 million. Net sales increased 11 percent to $6.7 billion.