By Chelsey Dulaney
Energizer Holdings Inc. posted weaker-than-expected results in
its December quarter, citing a stronger U.S. dollar and increased
competition in its personal-care segment.
Energizer's comments echo those of U.S. companies such as
Procter Gamble Co. and Microsoft Corp., whose sales are shrinking
in value or not keeping up with dollar-based costs.
Energizer on Wednesday said currency weighed its sales down by
$44.6 million in the latest quarter.
Meanwhile, the company is moving forward with plans to split
into two independent, publicly traded companies: one focused on
household products such as Energizer and Eveready brands, and one
on personal care with brands like Playtex and Banana Boat. Sales in
Energizer's namesake battery business, included in its
household-products segment, have slipped in recent years as more
devices rely on rechargeable battery packs instead of the
disposable kind.
The split is expected to be completed by July 1.
For its fiscal first quarter, Energizer reported earnings of
$105.1 million, or $1.69 a share, down from $107.9 million, or
$1.71 a share, a year earlier. Excluding restructuring and
acquisition costs, per-share earnings were $2.07.
Sales fell 6.8% to $1.04 billion.
Analysts polled by Thomson Reuters had forecast per-share
earnings of $2.13 on revenue of $1.1 billion.
Margins increased 120 basis points to 47.1%, boosted by lower
commodity costs and savings from the company's 2013 restructuring
efforts.
Household-products revenue fell 11.1% to $501.3 million, and the
segment's profit fell 9.1% to $121.2 million.
Energizer's personal-care segment posted a 2.4% drop in sales to
$537.1 million, weighed by lower feminine-care and wet-shave
volumes. The segment's profit fell 10.8% to $116.2 million.
Energizer said it is seeing its market share decline as
competition increases, despite stronger performance in many of its
U.S. personal-care categories.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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