Thursday, May 07, 2015

Home News Scotts Miracle-Gro posts a bigger loss than expected

Scotts Miracle-Gro posts a bigger loss than expected

Industry News

While overall revenue fell, the company's LawnService business grew 12 percent.

Bloomberg | January 31, 2011

MARYSVILLE, Ohio Lawn care products maker Scotts Miracle-Gro Co. posted a bigger-than-expected loss as revenue declined in the seasonally slow fiscal first quarter.

The company, based in Marysville, Ohio, sells lawn care products to North American and European consumers. In the U.S., it runs Scotts LawnService, a residential lawn care business. The company generally posts a loss in the first quarter due to the seasonal nature of the lawn and garden market.

Scotts lost $67.9 million, or $1.02 per share, during the period ended Jan. 1. That compares with a year-earlier loss of $57.7 million, or 88 cents per share. Excluding one-time costs related to product registration and recalls as well as results from the performance of its global professional business, which it is selling to fertilizer maker Israeli Chemicals Ltd., Scotts would have earned 99 cents per share during the first quarter.

Revenue fell 9 percent to $230.2 million from $252.4 million. Scotts said U.S. sales of grass seed nearly doubled and there was a nearly 50 percent uptick in lawn fertilizer sales and a 30 percent boost in lawn soil sales. The company's LawnService business also grew 12 percent, as it signed more customers. However, global consumer sales fell 12 percent as many retailers delayed purchases into the second quarter.

Analysts polled by FactSet were expecting a smaller loss of 93 cents per share, excluding items, and $290.3 million in revenue.

"The strong consumer demand in the fall, coupled with an anticipated slowdown of shipments in December, means that current retail inventory levels leave us well-positioned for strong sell-in as we approach the launch of the new lawn and garden season," said Chairman and CEO Jim Hagedorn.

For the company's fiscal year ending in September, Scotts expects sales growth from continuing operations of 4 to 6 percent. It also expects double-digit growth in adjusted earnings per share. The company will provide a more detailed full-year outlook at its annual event for analysts on Feb. 23.


 

Top news

Get the most out of mulch

Keep your crew moving smoothly during application.

New H-2B regulations affect recruiting, wages determination

DOL and DHS issue wage methodology and interim final rule.

The industry celebrates Day of Service

Taking place on Earth day, the national event had nearly 60 registered projects.

NALP board president named

Scott Jamieson took over the role on May 1.

Tips from the top: Dale Elkins

Dale Elkins talks about why it's important to keep your eye on the ball.

x