Applica Incorporated announced that fourth-quarter sales for 2003 were $209.0 million, a decrease of 5.6 percent from the same period in 2002. For the year ended Dec. 31, 2003, sales were $640.6 million, a decrease of 11.9 percent compared to 2002. The decrease in the quarter and the year was primarily the result of planned lower contract manufacturing sales. Additionally, for the first 9 months of the year, Applica experienced softer U.S. sales.
Applica reported a loss for fourth quarter of $6.5 million, or $0.27 per diluted share, compared with earnings of $5.1 million, or $0.21 per diluted share, for the 2002 fourth quarter. For the year ended Dec. 31, 2003, Applica reported net income of $15.2 million, or $0.63 per diluted share, as compared to a loss of $73.8 million, or $3.10 per diluted share, for the same period last year.
The fourth quarter of 2003 included an impairment charge of $7.2 million related to an intangible asset acquired as part of the acquisition of the Black & Decker household products group, expenses of $6.9 million related to the retrenchment of the Mexican and Chinese manufacturing facilities, and repositioning and other charges of $4.7 million related to accrued rental expenses at the Shelton, CT, U.S., facility, which was closed in the third quarter of 2002.
Harry D. Schulman, Applica's president and CEO, commented, "Although 2003 did not live up to our expectations, we have begun to see improving sales trends in January and February and believe it will be the beginning of good momentum for 2004 and beyond. We are very excited about the launch of the Home Cafe(TM) system and the Tide(TM)* Buzz(TM) Ultrasonic Stain Remover powered by Black & Decker(R). These are two new home-based consumer products resulting from our strategic relationship with The Procter & Gamble Company."
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