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Spectrum Brands 2012 revenue short of Street view

Associated Press Published: October 22, 2012

MADISON, Wis. (AP) — Consumer products maker Spectrum Brands Holdings Inc. on Monday reported fiscal 2012 revenue that was lower than Wall Street analysts had forecast but said it returned to profitability after a loss a year earlier.

The maker of Rayovac batteries and Remington shavers reported preliminary results for its fiscal year that ended Sept. 30, and said it tentatively plans to issue full-year and fourth-quarter results after the market closes on Nov. 14.

Spectrum reported revenue of $3.25 billion, up 2.1 percent from $3.19 billion in fiscal 2011. Revenue at the company's largest segment, batteries and appliances, was flat.

Analysts surveyed by FactSet had forecast revenue of nearly $3.28 billion, on average, during the latest period.

Excluding the unfavorable effects of currency exchange rates, fiscal 2012 revenue grew 4.3 percent compared with the previous year.

The Madison, Wis.-based company also reported net income of $48.6 million in fiscal 2012, compared with a loss of $75.2 million in the prior year. Spectrum did not issue earnings data on a per-share basis.

Its shares slipped 33 cents to $46.29 in morning trading Monday. They have slipped from a high of $48.22 in mid-October.

Spectrum said its global batteries and appliances segment recorded net sales of $2.25 billion in fiscal 2012, essentially unchanged from a year earlier.

The global pet supplies segment reported net sales of $615.5 million, up 6.3 percent from a year earlier, while the home and garden segment posted net sales of $387 million, up 9.4 percent.

Chief Executive Officer Dave Lumley said Spectrum has faced recent challenges from unfavorable currency exchange rates, economic difficulties in Europe, rising commodities prices and higher costs from Asian suppliers. Considering those challenges, he called the fiscal year's results "outstanding."

The preliminary results were issued as Spectrum plans to secure funding for its proposed $1.4 billion cash acquisition of the hardware and home-improvement business of tool maker Stanley Black & Decker Inc. That deal was announced Oct. 9.

The hardware and home-improvement unit makes locksets, hardware and faucets for residential use and includes brands such as Pfister, Baldwin and Kwikset.

In addition to Rayovac batteries and Remington razors, Spectrum-owned brands include George Foreman, Black & Decker, Toastmaster and Farberware.