Energizer Holdings Inc. (St. Louis, MO) announced results of its second quarter ended March 31, 2004. Net earnings for the quarter were $53.4 million, or $0.63 per diluted share, versus net earnings of $33 million, or $0.37 per diluted share, in the second fiscal quarter of 2003. The current quarter includes previously unrecognized tax benefits of $9.5 million, or $0.11 per share, and intellectual property rights income of $0.9 million after-tax, or $0.01 per share.
Net sales to customers for the second quarter in 2004 of $187.5 million decreased $6.7 million, or three percent, due to lower volumes of large-cell-size alkaline batteries, partially offset by higher volume for all other products. Large-cell-size alkaline volume declined 34 percent as sales returned to normal levels, compared to significant increases last year prompted by terrorism and security concerns.
In the US, retail alkaline category units declined an estimated five percent compared to the same quarter last year, while category value fell nine percent. Retail consumption of Energizer's alkaline products decreased an estimated seven percent in units and nine percent in value for the quarter. Energizer estimates its share of the alkaline battery market, at approximately 31 percent for the quarter, is essentially flat compared to the same quarter last year. Energizer estimates that overall retail inventory levels at March 31, 2004, are at, or slightly above, seasonally normal levels.
