Jacuzzi Brands, Inc., a global producer of branded bath and plumbing products for the residential, commercial, and institutional markets, announced earnings for the quarter ended July 3, 2004.
Net earnings for the third quarter of fiscal 2004 were U.S. $13.7 million, or $0.18 per share, compared with net earnings of $5.1 million, or $0.07 per share, in the third quarter of fiscal 2003. Fiscal 2004 third quarter net earnings included $2.0 million, net of tax, or $0.03 per share, of restructuring charges, while fiscal 2003 third quarter net earnings included $3.2 million, net of tax, or $0.04 per share, of restructuring charges. Sales for the quarter increased 16.3 percent to $366.8 million compared with the third quarter of fiscal 2003. Third quarter fiscal 2004 sales benefited from $8.5 million of currency exchange rates.
In Bath Products, the company reported third-quarter fiscal 2004 sales of $253.9 million, an increase of 16.9 percent over the third quarter fiscal 2003 sales. The company said the increase was led by increased sales of domestic spas, reflecting improved volume and an increase in average selling prices, and increased sales of domestic whirlpool baths, reflecting strong performance in both jetted and non-jetted baths. The UK also contributed to the sales increase, Jacuzzi said, mainly due to growth in the home center sector. Favorable currency exchange rates contributed $8.5 million to the third quarter of fiscal 2004 sales increase.
Sales in the Plumbing Products segment increased 17.8 percent to $86.2 million in the third quarter of fiscal 2004 as compared to the third quarter of fiscal 2003. Sales increased across all product lines. A slight rebound in the U.S. commercial and institutional construction market coupled with continued targeted marketing programs were the primary factors driving the quarter-over-quarter sales growth, the company said.
The company's Rexair unit reported that sales 6.4 percent to $26.7 million for the quarter. Higher sales were primarily due to higher volume and the higher price points of the new e2 RAINBOW(TM) vacuum cleaner system, which was launched earlier this year, the company said. The rollout of this new e2 model was completed during the second quarter of fiscal 2004.
"We are pleased to report these strong third quarter results, which demonstrate the benefits of the actions we have been taking over the past two years," said David H. Clarke, chairman and CEO of Jacuzzi Brands, Inc. "Almost every segment of both our bath and plumbing operations is experiencing increased traction in sales and profitability."
Mr. Clarke said the company expects the "favorable trend" to continue into the company's current fourth fiscal quarter and, as a result, it is increasing full-year earnings per share guidance to a range of $0.53 per share to $0.55 per share, excluding total fiscal 2004 net restructuring charges of $0.10 per share, or $0.43 per share to $0.45 per share, including these restructuring charges.
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