A Slow Quarter at Energizer

Energizer Holdings, Inc. posted results for the third fiscal quarter ended June30, 2012.For the quarter, net sales decreased 8.9% to $1.1 billion. For the nine months, sales stayed almost flat at $3.4 billion.

In personal care, net sales decreased 7.1%, to $673.5 million for the quarter. Wet Shave net sales decreased 8% on a reported basis, and 5% excluding the impact of unfavorable currencies.Increased sales of Schick Hydro refills, Hydro 5 Power Select and Hydro Silk were more than offset by lower sales across the other segments.Net sales in Skin Care decreased approximately 6% due to higher trade investment and unfavorable product mix.In the US, unit volumes of Banana Boat and Hawaiian Tropic increased despite a comparatively high prior year third quarter and a high second fiscal quarter of 2012. Net sales in Infant Care decreased approximately 12% due to category softness, heightened competitive activity and higher promotional and trade support behind bottles.

However, for the nine months, personal care net sales rose 2.4% to $1.9 billion.

“Adjusted diluted earnings per share for the quarter were generally in line with our expectations,” said Ward Klein, Energizer’s chief executive officer.”Top line sales, however, were down across both segments.Battery category volume softened, our market share in the battery category was negatively impacted by decreased shelf space and display activities primarily at a key customer, competitive activity in Personal Care has intensified late in the quarter, and both divisions were impacted by weakening global currencies.

“In Personal Care, we remain pleased with the results of our Hydro launches across men’s and women’s segments and while our sales versus the prior year were down in most other product lines, our competitive position and market shares remain stable.We expect improved fourth quarter diluted earnings.”