Jacuzzi Q4 Sales and Income Up
Dec 8, 2006
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Jacuzzi Brands, Inc., global producer of bath and plumbing products for the residential, commercial and institutional markets, announced financial results for the fourth quarter and fiscal year ended Sept. 30, 2006. Net sales for the fourth quarter of fiscal 2006 rose 7 percent to U.S. $313.5 million from $293.3 million for the fourth quarter of fiscal 2005. Operating income increased to $27.3 million from $17.1 million over the same period one year ago.

Operating margin improved to 8.7 percent of net sales for the fourth quarter of fiscal 2006 from 5.8 percent of net sales in the fourth quarter of fiscal 2005. The improvement in operating margin was due to cost reduction efforts in the Bath segment, reduced corporate expenses and higher sales prices that helped offset increased raw material costs.

Earnings from continuing operations for the fourth quarter of fiscal 2006 rose to $25.6 million, or $0.33 per diluted share, from $4.9 million, or $0.06 per diluted share, in the fourth quarter of fiscal 2005. In the fourth quarter of fiscal 2006, the company reversed $14.0 million ($0.18 per diluted share) of reserves against tax refunds due from the federal government of Italy. The company also recorded interest income of $2.6 million related to these tax refunds. Earnings from continuing operations for the fourth quarter of fiscal 2005 included a $1.1 million adjustment to decrease the gain associated with the disposition of Rexair, which occurred in the third quarter of fiscal 2005, versus no such adjustment in the corresponding period of 2006.

Net income for the fourth quarter of fiscal 2006 improved to $29.5 million, or $0.38 per diluted share, from net income of $2.3 million, or $0.03 per diluted share, in the fourth quarter of fiscal 2005. Net income for the fourth quarter of fiscal 2006 included a gain from the disposal of discontinued operations of $3.5 million, or $0.05 per diluted share, largely related to the company's previously announced sale of its investment in Spear & Jackson. Net income for the fourth quarter of fiscal 2005 included a loss from the disposal of discontinued operations of $2.8 million, or $0.03 per diluted share, primarily related to adjustments associated with the disposal of the Eljer operation, which was sold in the third quarter of fiscal 2005.

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