Personal Care Results Energize Energizer

Energizer reported that sales in the quarter ended Dec. 31, 2010 were flat at $1.17 billion, while earnings dropped more than 10% to $110 million. However, personal care results were positive. In fact, personal care net sales for the quarter rose 8% to $508.6 million, including approximately $27 million of incremental sales from the acquisition of American Safety Razor (ASR) on November 23, 2010. In addition, Venezuela net sales decreased by approximately $12 million for the quarter as a result of the currency devaluation and unfavorable economic conditions. Exclusive of the impact of ASR and Venezuela, net sales increased approximately $21 million, or 4%.

Wet shave sales increased 15% for the quarter. However, excluding ASR, Venezuela, and currencies, Wet Shave sales increased 12% due to:

These gains were partially offset by declines in legacy men’s systems products. Schick Hydro men’s systems and shave preparations have now been launched in North America, Japan and key Western Europe markets. In the markets where we’ve launched, our total value share of the Wet Shave market is growing, despite significant competitive activity. Based on our tracking in the U.S., our repeat purchases are the highest ever for our own products at this stage of a launch and among the highest experienced in the wet shave category.

Skin care sales decreased 14% due to lower shipments of Wet Ones, as the prior year first quarter shipments were significantly higher due to H1N1 driven demand and lower sales due to timing of shipments. Sales of sun care products are comparatively low in the first fiscal quarter as compared to other time periods during the year. Infant care sales were down 6% due to lower sales of bottles and Diaper Genie, both due primarily to competitive activities and a new product launch for Diaper Genie in the prior year quarter. Feminine care sales decreased 5% on lower sales of Gentle Glide partially offset by continued growth of Sport tampons.

Looking ahead, the company expects segment profit for Household Products to be down for the year while segment profit for Personal Care will be up modestly.