RYE, N.Y.-Despite a record-breaking sales total, Jarden posted a 24 percent drop in fourth-quarter net income, to $37 million.
This brought the bottom-total for the housewares giant to $203.9 million, down 16.4 percent, for its fiscal year ending on Dec. 31. Net sales in the quarter reached a record $2.2 billion, up 21.8 percent. For the year, net sales rose 9.9 percent to $7.4 billion.
The decline in fourth-quarter profit was due to decreases in gross margin and increases in selling, general and administrative expenses. Gross margin fell 62 basis points to 27.3 percent. SG&A rose 23.5 percent in dollars and 28 basis points as a percentage of sales, to 20 percent. In addition, Jarden’s provision for income taxes rose 67.4 percent.
Commenting on the fiscal year, James Lillie, Jarden’s CEO, said the company produced new records in revenues, segment earnings, operating cash flow and adjusted earnings per share. Lillie cited sales growth among its housewares brands, including Crock-Pot, FoodSaver and Oster. “We are excited about the outlook for 2014 and beyond, given the core momentum in our business and the strength of our team,” he said.