Energizer Holdings Inc. (St. Louis, MO) announced results of its fourth quarter ended September 30, 2003. Net sales to North American battery customers for the fourth quarter of $289.1 million increased $21.4 million, or 8%, over the same period last year. Gross profit increased $6.5 million, due to higher sales from lower-margin products, such as large battery cell sizes and flashlights.
Segment profit increased $15.8 million on higher gross profit, the absence of a $5 million Kmart bad debt charge in the fourth quarter of last year, and lower overhead spending. For the year, sales increased $19.7 million, or 2%, over the prior year as a result of fourth-quarter growth. For the first nine months, volume increases were more than offset by unfavorable pricing and product mix. Gross margin for the year decreased $12.3 million, or 3%, primarily on the unfavorable pricing and product mix.
International battery sales increased $12.6 million, or 7%, for the quarter on favorable currency translation of $10 million and higher volume, partially offset by unfavorable pricing and product mix. Segment profit increased $1.2 million, or 4%, including favorable currency impacts of $7.5 million. Absent currency impacts, segment profit declined $6.3 million. For the year, sales increased $40.1 million, or 6%, on currency increases of $31 million as well as favorable pricing and product mix and higher volume. Segment profit increased $22 million, or 22%, for the year with currency accounting for $17.3 million of the improvement. Absent currency impacts, segment profit increased $4.7 million, or 5%, on favorable pricing and product cost, partially offset by higher advertising and promotion expense.
