News

Energizer Reports Fourth-Quarter, Fiscal 2004 Results

November 02, 2004 by Jeff Shepard

Energizer Holdings Inc. (St. Louis, MO) announced results of its fourth quarter ended September 30, 2004. Net earnings for the quarter were $60.3 million, or $0.77 per diluted share, versus net earnings of $33.0 million, or $0.38 per diluted share, in the fourth fiscal quarter of 2003.

For the North America battery market, net sales for the fourth quarter of 2004 of $331.7 million increased $45.3 million, or 16%, due to higher sales volumes. Alkaline battery sales grew approximately 5%, with even more significant growth in other product lines. Gross margin for the current quarter increased $14.8 million on higher sales volumes, however much of the sales increases were in large cell-size batteries and lighting products, which generally have lower margins than other product lines. Segment profit increased $10.5 million, or 13%, as higher gross margin was partially offset by higher overhead expenses.

For the international battery market, net sales for the quarter increased $14.4 million, or 8%, on higher volume and favorable currency impacts of $7.3 million. Segment profit declined $1.9 million for the quarter as margin from higher volume and favorable currency of $3.3 million were more than offset by higher selling, advertising, promotion and general and administrative expenses. For the year, net sales increased $69.4 million, or 9%, on favorable currency impacts of $51.6 million and higher volumes in all areas, partially offset by unfavorable pricing and product mix, primarily in Europe. Segment profit increased $25.3 million for the year, including a $26.6 million favorable impact from currencies. Absent currencies, segment profit decreased $1.3 million as higher sales were offset by higher selling, advertising, promotion and general and administrative expenses.