Small appliances maker Spectrum Brands Holdings reported record fiscal 2014 second quarter results (ending March 30, 2014).
The company reported net sales of $1.02 billion in the second quarter of fiscal 2014, up 3.4% from $987.8 million in the second quarter of fiscal 2013.
Net income in the quarter was $33.8 million, compared to a net loss of $41.2 million in the second quarter of fiscal 2013.
Spectrum Brand CEO Dave Lumley said the second quarter of the year is seasonally the company's smallest quarter. "Combined with our record first quarter, we have solid first half momentum toward delivering a fifth consecutive year of record financial performance in fiscal 2014," he said.
"Virtually all of our divisions achieved higher net sales and adjusted EBITDA," Lumley said. "In Europe we again delivered record results. In a region with negative foreign currency headwinds, our Latin American battery, personal care, small appliance, and HHI sales all increased on a constant currency basis."
Lumley added: "Similar to the first quarter, we achieved a record level of continuous improvement savings for a fiscal second quarter. "This reinforces our ongoing focus to reduce our cost structure, more than offset higher product costs and continue to invest in new products, many of which are launching in the second half of fiscal 2014 and into fiscal 2015."
Lumley said the second half of fiscal 2014 "should be much larger than our record first half and stronger than the second half of fiscal 2013."
Spectrum's Global Batteries & Appliances business segment reported fiscal 2014 second quarter net sales of $480.9 million, up 2.6% from $468.6 million in the second quarter of fiscal 2013. The company said higher battery and personal care appliance net sales more than offset slightly lower small appliances revenues.
Net sales for the global personal care appliances category were $117.0 million in 2Q fiscal 2014, up 2.4% from $114.2 million in 2Q fiscal 2013.
Personal care appliances saw continuing solid revenue growth in Europe and Latin America. North American net sales were essentially unchanged in the quarter.
The small appliances product category reported net sales in 2Q fiscal 2014 of $152.5 million, compared to $154.6 million in 2Q 2013. Higher European net sales resulted from expansion into new channels and increased distribution at existing retailers. These were offset by a decline in North American net sales, mostly because of non-recurring promotions. Latin American net sales on a constant currency basis grew strongly, boosted by new product introductions in South and Central American countries.
Global Batteries & Appliances adjusted segment net income was $35.7 million, from $34.6 million in 2Q fiscal 2013.
Spectrum Brands expects fiscal 2014 net sales to increase approximately at the rate of U.S. GDP growth compared to fiscal 2013 net sales.
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