Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Salton Announces Q4, Year-End Results
Oct 16, 2006
 Printable format
 Email this Article
 Search

Salton, Inc. announced fiscal results for its fourth quarter and year ended July 1, 2006. The company reported net sales of U.S. $129.5 million and a loss of $50.8 million or $3.57 per share for its fiscal 2006 fourth quarter compared to net sales of $151.2 million and a loss of $28.8 million or $2.53 per share for the fiscal 2005 fourth quarter. Net sales decreased domestically by $29.7 million. This decrease includes $5.4 million of reductions, as a result of the sale or discontinuance of certain product lines. The remaining $24.3 million decrease resulted primarily from volume and mix shifts as a result of price increases, other planned product line changes and close outs of discontinued product lines. Despite continued weak consumer demand in the United Kingdom, foreign sales increased by $8.0 million. The loss in the 2006 fourth quarter included a pretax charge of $21.9 million for non-cash intangible asset impairments associated with certain trade names and a $3.4 million non-cash valuation allowance against certain foreign deferred tax assets. The loss in the 2005 fiscal fourth quarter included a pretax charge of $3.0 million for non-cash intangible asset impairments.

Salton’s sales were $636.0 million for the year ended July 1, 2006 compared to $781.7 million in fiscal 2005, a reduction of $145.7 million. Domestic sales declined by $124.2 million due to the impact of the sale of the tabletop product lines in September 2005, inventory shortages, vendor and customer uncertainty, post-holiday overstocks at retailers and planned product discontinuation. Foreign sales, particularly in the United Kingdom, were impacted by a continuing weak retail market, resulting in a decline of $16.1 million in 2006. In addition, Salton incurred $5.5 million in unfavorable foreign currency fluctuation.

Gross profit declined from $187.5 million (24 percent) in fiscal 2005 to $144.4 million (22.7 percent) in fiscal 2006, primarily a result of global raw material cost increases and additional costs associated with inventory reduction programs. These added costs were partially offset by a $10.6 million decline in distribution expenses.

Selling, general and administrative expenses decreased to $172.1 million in 2006 compared to $207.8 million for 2005 in connection with previously announced cost reduction initiatives. It is expected that further restructuring activities will continue in fiscal 2007, resulting in additional distribution and SG&A expense reductions. Net interest expense was $37.0 million for fiscal 2006 compared to $51.7 million for fiscal 2005 as a result of lower levels of indebtedness and the debt exchange completed in August 2005.

The company had approximately $293 million in indebtedness, net of approximately $44 million of cash, swap valuation and accrued interest on senior secured notes at the end of the fiscal 2006 year-end, compared to $429.3 million as of July 2, 2005, net of approximately $21.9 million of cash and swap valuation.

Back to Daily News

 

Daily News

...........................................................

Nov 26, 2014: Hamilton Beach 3Q income down slightly

Nov 26, 2014: LG's sales of Inverter Linear Compressor refrigerators top 10 million

Nov 25, 2014: Robotics Exhibits Grow 25% at 2015 CES

Nov 25, 2014: Index shows HVAC/R contractors more positive than last year

Nov 25, 2014: Consumer Confidence Index Declines

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows