Jarden Outdoor Division Q1 Revenue Drops 10.2%

mike lewis

• April 22 2009
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Jarden Corporation announced in its Q1 financial report that sales from its Outdoor Solutions segment, which includes K2, fell 10.2 percent to 591.3-million dollars from 658.3-million in the same period in 2008.  Segment operating income fell 28.1 percent to 26.6-million dollars in Q1, compared to 37.0-million in the 2008 first quarter.

While these may sound bad, don’t shed a tear for Jarden just yet. The division had earnings of 51.3-million dollars, which were whittled down to 26.6 by “reorganization and acquisition related integration costs” of 9.4-million dollars and depreciation and amortization of 15.9-million. Jarden’s Outdoor Solutions outsold all of its other divisions combined for Q1 and the profitability of the group was only outstripped by its Consumer Solutions division by just over 5-million dollars.

According to the release:

For the quarter ended March 31, 2009, net sales decreased 6.4% to $1.1 billion compared to $1.2 billion for the same period in the previous year. Approximately $54 million of the $78 million decrease in net sales was due to foreign exchange fluctuations between the periods. For the quarter ended March 31, 2009, the Company recorded a net income of $8.9 million, or $0.12 per diluted share, compared to a net income of $4.7 million, or $0.06 per diluted share, in the quarter ended March 31, 2008. On a non-GAAP basis, adjusted net income was $18.4 million, or $0.24 per diluted share, for the quarter ended March 31, 2009, compared to $16.5 million, or $0.22 per diluted share, for the quarter ended March 31, 2008.

“As noted in the pre-release we issued last week, the first quarter supported our view that Jarden’s diversified portfolio of primarily market leading brands is better positioned to weather the current economic environment than many of our competitors,” said Martin E. Franklin, Chairman and Chief Executive Officer of Jarden Corporation. “For the first quarter, we had better than expected sales, solid margins, net income and EPS growth, record cash flow and excellent working capital improvements, producing a strong overall quarter in a very tough macro-economic environment. We were particularly pleased with the organic sales growth within our Consumer Solutions segment, as it was driven from our domestic as well as international businesses.”