Scotts expects rough patch in first quarter
Marysville, Ohio-based Scotts Miracle-Gro said Wednesday morning that its first quarter will see a bigger-than-expected loss, but it is maintaining its outlook for the full year.
Sales for the first quarter ending Dec. 31 are expected to decline about $30 million from the same quarter a year ago. The adjusted net loss in the quarter is expected to range from $70 million to $75 million, compared with a net loss of $65.6 million in the prior year.
The $1.20-to-$1.25 per share loss is greater than the $1.13 per share loss expected by Wall Street.
The first quarter is the slowest selling season for the lawn and garden company. It represents less than 10% of Scotts’ full-year total.
The company pointed to lower sales volume, "unfavorable product mix" and higher commodity costs for hurting its performance.
"The foundation we’ve built for fiscal 2012 gives us a high degree of confidence in a strong lawn and garden season," said Jim Hagedorn, chairman and CEO. "We’re excited about the innovation we’re bringing to the market, our increased investment in advertising and the continued evolution of our consumer-centric business model. The results we expect in the first quarter are in line with our internal expectations as we work with our retail partners to help them finish the year with lower inventory levels. That, in turn, should set the stage for a strong spring selling season."
The company continues to expect sales growth of at least 6% from its Global Consumer and Scotts LawnService segments in fiscal 2012.
Newell Rubbermaid gets boost in financing
Atlanta-based Newell Rubbermaid announced a new five-year $800 million syndicated revolving credit facility.
Michael Polk, president and CEO said: “This enhanced credit facility reflects our solid financial position and improved balance sheet, further bolstering our financial flexibility and demonstrating our continued ability to access capital at attractive terms.”
This facility replaces a $665 million syndicated revolving credit facility that was scheduled to mature in November 2012.
JPMorgan Chase Bank acted as Administrative Agent for the new facility. J.P. Morgan Securities, LLC, Barclays Capital, Citigroup Global Markets and RBC Capital Markets served as Joint Lead Arrangers and Joint Bookrunners.
Castle Windows announces staff expansion
Castle Windows, the Mt. Laurel, New Jersey-based seller and installer of doors and windows throughout the Northeast, has announced that plans to expand and increase staff by approximately 20%, all before January 15th.
“We have already expanded operations and have the need for added marketing and customer service personnel,” said CEO Chris Cardillo in a prepared statement. “We have also acquired the customer base from a large competitor of ours and so we need more employees to assure the same level of service.”
Cardillo said he expects to bring on about 30 people, most of whom will be in south Jersey, with the rest spread throughout the New England and southern states. Castle Windows currently operates in New York, New Jersey, Pennsylvania, Delaware, Connecticut, Maryland, Massachusetts, Rhode Island, West Virginia, North Carolina, South Carolina and New Hampshire.
Castle Windows currently employs 175 employees and does about $55 million in annual revenue, which Cardillo estimates could grow to 300 people, with annual revenues of $100 million in six years.