RYE, N.Y.–Due to two non-cash charges, Jarden posted a loss of $59 million in its first fiscal quarter of 2010.
In its statement reviewing the results for the quarter, the company said it took a charge of $21.5 million associated with the devaluation of the Venezuelan bolivar, and one of $56.6 million resulting from an accounting guidance issued by the U.S. Securities and Exchange Commission addressing Venezuela’s hyperinflationary status.
Without these charges, Jarden’s net income for the first quarter was $22.2 million, up 21 percent from the first quarter of 2009.
The company’s net sales reached $1.2 billion in the quarter, an increase of 4.4 percent over last year. Factoring in the two charges, selling, general and administrative expenses jumped 48 percent. Gross margin was up by 30 basis points to 26 percent.
Martin Franklin, Jarden’s chairman and chief executive officer, said each of the company’s operating segments posted “solid organic growth and improved profitability.” Franklin said Jarden was able to manage through the quarter in the face of an “inflationary cost environment” that emerged in the quarter, and would have to do so throughout the year, given the expected increases in commodity costs.