Business news : Jarden Outdoor Solutions Sales Up in First Quarter

Jarden Outdoor Solutions (JOS), which owns Abu Garci, Coleman, K2, Rawlings and other sporting goods brands, generated sales of $694.9 million in the first quarter ended March 31, up 3.7 percent from the first quarter a year ago, according to its parent company Jarden Corp.

Operating earnings reached $56.2 million, down slight from $57.8 million in the first quarter of 2012. JOS brand portfolio includes Abu Garcia, Aero, Berkley, Campingaz  and Coleman, ExOfficio, Fenwick, Gulp!, Invicta, K2, Marker, Marmot, Mitchell, Penn, Rawlings, Shakespeare, Stearns, Stren ,Trilene, Volkl  and Zoot.

Jarden reported that all four of its segments grew in the quarter resulting total net sales of $1.58 billion, up 5.3 percent. Nevertheless, the company reported a loss of $4.4 million, compared with a profit of $35.1 million a year earlier due acquisition related accounting charges and a $29.0 million non-cash charge it took on its Venezuelan operations due to the February devaluation of the Bolivar.

Jarden’s other two major segments include Consumer Solutions, which makes a variety of small kitchen appliances, and Branded Consumables, which owns a variety of household cleaning, security and leisure brands.

“Commodity cost increases continue to be relatively benign compared

to the last several years, and we believe we can deliver an overall organic top-line sales increase of 3-5 percet for calendar 2013, while also driving year-over-year operating margin expansion,” said CEO James Lillie.

JARDEN CORPORATION
NET SALES AND OPERATING EARNINGS BY SEGMENT (Unaudited)
(in millions)
	Outdoor Solutions			Consumer Solutions			Branded Consumables			Process Solutions			Intercompany Eliminations (a)			Total Operating Segments			Corporate/ Unallocated			Consolidated
Quarter ended March 31, 2013
Net sales	$	694.9		$	363.3		$	443.7		$	97.6		$	(18.8)		$	1,580.7		$	--		$	1,580.7
Segment earnings (loss)	$	71.2		$	45.1		$	56.1		$	14.9		$	--		$	187.3		$	(58.7)		$	128.6
Adjustments to reconcile to reported operating earnings(loss):
Fair market value adjustment to inventory		(1.5)			--			(3.5)			--			--			(5.0)			--			(5.0)
Venezuela devaluation-related charges		--			--			--			--			--			--			(29.0)			(29.0)
Depreciation and amortization		(13.5)			(7.6)			(12.8)			(2.8)			--			(36.7)			(1.0)			(37.7)
Operating earnings (loss)	$	56.2		$	37.5		$	39.8		$	12.1		$	--		$	145.6		$	(88.7)		$	56.9
	Outdoor Solutions			Consumer Solutions			Branded Consumables			Process Solutions			Intercompany Eliminations (a)			Total Operating Segments			Corporate/ Unallocated			Consolidated
Quarter ended March 31, 2012
Net sales	$	670.1		$	347.9		$	402.6		$	91.8		$	(17.0)		$	1,495.4		$	--		$	1,495.4
Segment earnings (loss)	$	71.6		$	43.6		$	52.1		$	12.0		$	--		$	179.3		$	(41.8)		$	137.5
Adjustments to reconcile to reported operating earnings(loss):
Depreciation and amortization		(13.8)			(7.1)			(11.4)			(3.0)			--			(35.3)			(0.6)			(35.9)
Operating earnings (loss)	$	57.8		$	36.5		$	40.7		$	9.0		$	--		$	144.0		$	(42.4)		$	101.6
(a) Intersegment sales are recorded at cost plus an agreed-upon intercompany profit on intersegment sales.

Source Jarden Outdoor through SportsOneSource