Energizer Q4 Profit Down, Adj. EPS Beats Estimates - Quick Facts

(RTTNews) - Energizer Holdings Inc. (ENR) reported that its fourth-quarter net earnings decreased to $105.1 million or $1.66 per share, from $117.00 million or $1.84 per share in the same quarter last year.

Included within the reported results are restructuring related pre-tax costs of approximately $34 million, inclusive of certain information technology enablement costs (included in SG&A) and obsolescence charges related to the exit of certain non-core product lines (included in Cost of products sold). This was more than offset by a pre-tax benefit of approximately $70 million related to the curtailment gain recorded as a result of the previously disclosed discontinuation of certain post-retirement benefits.

Adjusted net earnings for the quarter were $1.38 compared to $1.76 in the prior year fiscal quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.32 per share. Analysts' estimates typically exclude special items.

Fourth fiscal quarter results reflect the impact of the expected net sales shortfall within the Household Products segment due to the loss of distribution in two U.S. retail customers, increased advertising and sales promotion (A&P) spending, and the unfavorable impact of currencies. These shortfalls were partially offset by the continued benefit of cost savings resulting from the 2013 restructuring project and the favorable impact of organic sales growth in Personal Care.

Net sales for the quarter declined to $1.066 billion from $1.143 billion in the prior year quarter. Ten analysts had consensus revenue estimate of $1.07 billion for the quarter.

For fiscal 2014, the company expects GAAP earnings per share to be in the range of $6.30 to $6.70, and adjusted net earnings per share of $7.25 to $7.50. Analysts expect the company to report earnings of $7.34 per share for fiscal 2014.

For 2014, Excluding the impact of the acquisition, Personal Care organic sales growth is expected to increase low-single digits driven by the continued launch of innovation, international growth, and pricing. For Household Products, the Company expects mid single-digit net sales declines due primarily to the full year impact of the loss of two U.S. customers and approximately $18 million of storm volumes that occurred in the first quarter of fiscal 2013 that are not forecasted to be repeated.

The Company expects to continue to realize significant savings from the 2013 restructuring project, yielding an additional $80 to $100 million of gross pre-tax benefit in fiscal 2014. These savings are expected to help offset the top-line shortfall while providing incremental brand building investment funds.

For the first half of fiscal 2014, the Company expects net sales and adjusted net earnings per share to decline versus prior year due primarily to the top-line softness within Household Products and continued competitive pressures with improvement versus the prior year expected in the back half of fiscal 2014.

In a separate press release, Energizer Holdings announced the appointment of James Johnson to its Board of Directors effective November 3, 2013. Johnson has been appointed to the class of Directors whose term of office expires at Energizer's 2014 Annual Meeting of Stockholders. He also has been appointed to the Nominating and Executive Compensation Committee.

Energizer also announced that its Board has declared a dividend for the first quarter of its fiscal 2014 of $0.50 per share of Common Stock, payable on December 17, 2013 to all shareholders of record as of the close of business on November 20, 2013.