Energizer Posts Q2, Six-Month Report

Energizer Holdings, Inc. posted results of its second quarter and six months ended March 31, 2011.

For the second quarter, total net sales rose 1% to $1.04 billion. Higher sales in Wet Shave, including the impact of Skin Care, were partially offset by declines in Household Products and Feminine Care, according to the company.

Household products sales fell 4% to $424.9 million for the quarter. Shortfalls in the U.S. were partially offset by a strong comparative quarter in many Asia and Latin America markets.

In Personal Care, net sales rose 3% to $610.4 million for the quarter. This is due to Schick Hydro men’s systems and shave preparations launched in key markets, including North America, Japan, Western Europe and other markets in Asia.

Skin Care sales increased 10% due to higher shipments of Wet Ones and higher sales of sun care products driven by a favorable adjustment for prior season sun care returns, partially offset by lower volumes due to timing of shipments in the early stages of the sun care season. Net earnings for the quarter were $39.1 million.

For the six months ended March 31, 2011, net sales rose 1% to $2.21 billion. Household products sales slipped 5% to $1.09 billion, while personal care sales rose 1% to $1.12 billion.

“Our year of investment continues as planned,” said Ward Klein, company chief executive officer. “We are taking appropriate actions to right size our Household Products division production platform, fund the expansion of our global Wet Shave business, and execute various international market and new product initiatives. We believe these investments and other initiatives will serve as the foundation for establishing earnings momentum in 2012 and beyond.”

According to the company, its restructuring project, announced in the fourth quarter of fiscal 2010, remains on track as it expects to incur approximately $75 to $85 million in restructuring costs, with the vast majority in fiscal 2011, and generate annual savings of approximately $25 to $35 million, by the end of fiscal 2012.

Looking forward, Energizer expects the incremental impact of the Schick Hydro launch will drive a mid to high single digit growth in Personal Care net sales for the remaining six months of fiscal 2011.The company will also “anniversary” the Schick Hydro launch during the third fiscal quarter. It should be noted that Japan is an important wet shave market for Schick, and the impact of the devastating events in Japan remain unclear.