Scotts' 4Q Loss Smaller Than Last Year

Scotts Miracle-Gro reported a smaller fourth quarter loss than a year ago on higher sales as consumer purchases of its lawn and garden products increased.

Scotts, whose brands include Miracle-Gro plant food, Ortho pesticide and Turf Builder, reported a loss of $37.9 million, or 59 cents per share, for the quarter ended Sept. 30 compared with a loss of $42.7 million, or 64 cents a share, a year ago.

Sales were $508.9 million, up from $492.1 million a year ago.

Excluding restructuring and other charges, Scotts lost $6.8 million, or 11 cents a share for the quarter.

Analysts surveyed by Thomson Financial expected a loss of 11 cents a share on revenue of $523 million.

Scotts recorded a non-cash charge of $37.9 million during the quarter related to a revised value for its Smith & Hawken business, the company's biotechnology initiative and other information technology projects. Smith & Hawken sells garden pottery, tools and outdoor furniture.

In the year-ago period, Scotts earned $1.6 million, or 2 cents a share, when discounting a $60 million charge that the company said then was primarily related to trade names and the international value of its consumer business.

Because of seasonal changes in the lawn and garden business, Scotts typically reports a loss in the fourth quarter.