Scotts Lowers Fiscal 2001 Earnings Guidance

For its fiscal year ending Sept. 30, 2001, the company expects diluted earnings per share before restructuring and other charges to be in the range of $2.00 to $2.15, down from its previous guidance of $2.33 to $2.63.

Despite tough market conditions, James Hagedorn, Scotts president and CEO, said the company increased its overall share of the North American lawn and garden category this year. "The reduced range for fiscal year 2001 is the result of continued softening in retailer and consumer demand that we saw in the third and fourth quarters despite our significant efforts to reinvigorate the category."

Hagedorn said the company is cautious about the outlook for overall category growth in fiscal year 2002. More details about the company’s Professional Business Group and its North American Consumer business results will be available following the close of the company’s fiscal year.

The focus in fiscal year 2002 will be on improving the company’s return on invested capital. Scotts expects restructuring charges to be as much as $75 million before taxes in fiscal year 2001. It also expects the restructuring to generate cost savings of at least $30 million on a pre-tax basis for fiscal year 2002 and $75 to $80 million on a pre-tax basis annually for fiscal year 2003 and thereafter.