Alberto-Culver Reports Strong First Quarter Results

The Alberto-Culver Company, Melrose Park, IL, experienced record sales and earnings in the first quarter ended Dec. 31, 2001, executives said. Sales increased 8.9% for the first quarter, totaling $614.3 million, compared to $563.9 million the previous year. Net earnings were up 24% to $29.3 million.

President and chief executive officer Howard B. Bernick noted the company’s consumer packaged goods and Sally Beauty businesses were particularly strong segments, even in the current economic climate. Mr. Bernick reported that Alberto-Culver’s North American unit showed double-digit sales and profit growth rates.

“Even when consumers are troubled by the economy, they will continue to buy products to wash their hair, improve their skin and enhance their self-esteem,” he said. “With our global Alberto VO5, St. Ives and Tresemme consumer brands and the outstanding selection of professional beauty products available at Sally stores, we tend to be resistant to recessionary times such as these.”

Pro-Line International, a leading marketer of African-American hair care products, had a very strong quarter in the U.S. and overseas. Argentina’s currency devaluation and K-Mart’s bankruptcy filing are not expected to change the company’s outlook for the year.

The board of directors also approved an increase in the company’s quarterly cash dividend on both classes of its stock (ACVA, ACV). This marks the eighteenth consecutive year that the cash dividend has been increased. During the quarter, Alberto-Culver acquired Armstrong-McCall, a Texas-based full-service beauty products distributor and franchisor. This acquisition should contribute approximately $75 million in additional sales and be slightly accretive to earnings per share through the balance of fiscal 2002, but had no impact on first quarter sales or profit results, according to the company.