Small electric appliances OEM Spectrum Brands said fiscal 2011 second quarter net sales, including the June 2010 Russell Hobbs acquisition, were $694 million, up 1% compared to second quarter of fiscal 2010.
“While our second quarter is typically not as large as other quarters in the year, we remain on track for 2011, have confirmed our full-year guidance for financial growth,” said Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings. "Our second-quarter results were highlighted by double-digit growth in our Remington personal care and our Home and Garden businesses."
Spectrum also increased its cost synergies target from the Russell Hobbs transaction to $30-35 million, up from $25-30 million.
Consolidated net sales of $1.56 billion for the first six months of fiscal 2011, including Russell Hobbs’ results, were up 1.6% compared to $1.53 billion in the first half of fiscal 2010.
"We ended the second quarter in a solid liquidity position even as we have reduced our term loan by $70 million of prepayments to date in our drive to achieve a cumulative debt reduction of at least $200 million in fiscal 2011," Lumley said.
The Global Batteries & Appliances segment reported fiscal 2011 second-quarter net sales of $459.4 million, compared to (including the Russell Hobbs businesses) $461.0 million in second quarter 2010. Second-quarter 2011 segment sales were helped by $4.8 million of foreign exchange.
Global battery sales in 2Q 2011 were $197.8 million down 6.6% from 2Q 2010.
Personal Care products sales were up 12.1% with growth across all geographic regions. Net sales were $108.0 million in 2Q 2011, up from $96.3 million in 2Q 2010.
The Small Electrical Appliances category of the Global Batteries & Appliances segment had 2Q 2011 net sales of $153.6 million, essentially unchanged compared with $152.7 million in 2Q 2010 when including the Russell Hobbs businesses.
Global Batteries & Appliances had a segment net income of $35.5 million.
Background on Spectrum's Appliance Business
In October 2010 Spectrum Brands began managing the businesses in three vertically integrated, product-focused reporting segments: Global Batteries & Appliances, Global Pet Supplies, and Home and Garden Business.
The Global Batteries & Appliances reporting segment combines the company's former Global Batteries & Personal Care segment with substantially all of the former Small Appliances segment, which consists of the Russell Hobbs businesses acquired on June 16, 2010. Certain pest control and pet products in the former Small Appliances segment were reclassified into the other business segments. The segment now includes:
• worldwide battery, shaving and grooming
• personal care appliances
• small electrical appliances in the kitchen and home product categories
• portable lighting
Spectrum's appliance brands include:
• George Foreman
• Black & Decker Home
• Russell Hobbs
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