Energizer Profit, Sales Fall

Energizer Holdings Inc. said Thursday that earnings and revenue fell for its latest quarter, impacted by the timing of holiday shipments, currency headwinds and the unfavorable comparison to prior-year, temporary promotional gains.

While profit narrowly missed forecasts, sales edged ahead of Wall Street expectations.

The St. Louis company in July split from the newly named Edgewell Personal Care Co., a move to separate its struggling battery business from the better-performing Schick razors and other personal-care brands.

Disposable batteries have been largely displaced as consumers shift to smartphones and other devices with built in and rechargeable batteries.

"Fiscal 2015 was a transformational year for the new Energizer," said Alan Hoskins, chief executive. "We delivered solid results while executing a very complex spinoff transaction and facing unprecedented foreign currency headwinds that had a significant impact on our top and bottom lines."

Looking ahead to 2016, the company said it expects organic net sales to be flat to down low-single digits with currency impacts reducing net sales by $50 million to $60 million, or 3% to 4%. Adjusted earnings on a per-share basis are expected to be in the range of $1.90 to $2.10. The forecast was downbeat compared to analysts' estimates of $2.48 per share.

For the quarter ended Sept. 30, organic net sales fell 7.9%, with foreign exchange volatility accounting for 6.8% of the decline. Change in Venezuela results, due to the deconsolidation, also dented results.

Restructuring related charges in the latest quarter were $2.8 million.

Overall, the company posted a profit of $23.1 million, or 37 cents a share, down from $46.5 million, or 75 cents a share a year earlier. Excluding certain items, adjusted earnings were 61 cents compared to $1.05 a year earlier.

Revenue dropped 18% to $399.1 million.

Analysts surveyed by Thomson Reuters forecast earnings of 62 cents on $395 million in revenue.

Write to Ezequiel Minaya at [e-mail]

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(END) Dow Jones Newswires

November 12, 2015 07:35 ET (12:35 GMT)

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