Rayovac Reports Profit below Forecasts
Rayovac Corp. (Madison, WI) stated that it expects fiscal fourth-quarter earnings to fall as much as 40 percent as slowing computer, telecommunications and retail sales weakened the demand for batteries in the US.
Industry-wide battery sales, which have typically grown five to seven percent year over year, have been about flat in recent months, according to the company. Rayovac said it expects to earn between $0.25 and $0.27 per share in the quarter ending September 30, 2001; well below the $0.44 per share reported for the year-earlier period. The forecast earnings exclude special charges.
The company expects fiscal-year 2002 earnings between $1.25 and $1.30 per share, below the consensus estimate of $1.51 per share. Industry growth is expected to slowly recover in the next 12 months. Sales for the fourth quarter are expected to be flat or slightly down while sales for the next fiscal year are expected to rise between four and five percent, according to the company.