Scotts Co. Reports Lower Loss From Last Year

MARYSVILLE, Ohio – The Scotts Co. narrowed its net loss for the first quarter of 2005 and achieved record sales fueled by the acquisition of lawn and garden retailer Smith & Hawken, according to a recent company statement.

The company reported a first-quarter net loss of $49.1 million, or $1.49 per share, compared with a reported net loss of $70.7 million, or $2.21 per share, for the same period last year. The company’s total first-quarter sales rose 35 percent. Excluding the Smith & Hawken purchase, the company reported an 8-percent sales increase.

"We're off to a great start in 2005 as every business segment exceeded our budget expectations for both sales and operating profits," says Jim Hagedorn, Scotts’ chairman and chief executive officer. "Our strong start, coupled with the combination of new products, trade programs and continued consumer interest in gardening, gives us increased confidence that we can deliver 10 to 12 percent adjusted net income growth in 2005."

Sales for the North America business increased 9 percent to $113 million vs. $104 million for last year's comparable period. Scotts LawnService had a strong finish to its season with revenues up 13 percent for the quarter to $20.9 million, compared with $18.5 million last year. International sales increased 16 percent to $68.4 million. Excluding the impact of foreign exchange rates, international sales increased 6 percent in the quarter.