Scotts Co. Posts A Wider First-Quarter Loss

The Columbus, Ohio, company said its net loss for the three months ended Dec. 30, 2000, widened to $51.2 million from $30.8 million a year earlier. Wall Street analysts had expected a loss of $1.95 a share, according to research firm First Call/Thomson Financial.

Net sales fell 20 percent to $152.6 million from $191.5 million a year ago. Sales in Scotts' North American Consumer lawns business fell sharply to $17.7 million from $45.1 million a year ago, and garden sales fell to $8.0 million from $14.2 million a year ago. Still, the company said it expects full-year sales to grow at double-digit rates.

“Sales have been pushed from the first quarter to later quarters because our products are being delivered directly to retailers and closer to the time that they actually sell them,” said Chairman Charles Berger. “Fixed costs have increased because selling functions previously outsourced to distributors are now incorporated into Scotts' sales force.”

International consumer sales fell to $41.9 million compared with $49.1 million. International sales fell, Scotts said, because it discontinued the private-label growing media business in the U.K., and customers shifted deliveries from December to January due to their increased focus on products other than lawn and garden during the Christmas season.

For more information about The Scotts Company visit the company’s web site at www.scottsco.com.