Energizer Reports Fourth-Quarter, Fiscal 2004 Results

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.