Sara Lee Reports Increased Sales and Earnings

Sara Lee Corporation today announced results for the fourth quarter and fiscal year 2001 ended June 30, 2001. For the fiscal year, Sara Lee reported revenues of $17.7 billion, up 1%, and diluted earnings per share from total operations of $1.36, compared to $1.34 in fiscal 2000, an increase of 1%. In the fourth quarter, reported revenues fell 5% versus last year to $4.2 billion, and diluted earning per share from total operations increased 6% to $.37 from $.35.

Sara Lee’s household products, the company’s most global line of business, includes traditional household and personal care items as well as the company’s direct selling operations. The household products business was unaffected by divestitures in fiscal 2001, so reported results, also reflect ongoing operations. There were no acquisitions relating to this line of business in fiscal 2001, but the company said currency did have a major negative impact on reported results; on a local-currency basis, fourth-quarter sales grew 6%, with operating income up 9%, while full-year sales and operating income both increased 6%.

More than 80% of the sales from the company’s household and personal care operations came from four core categories in fiscal 2001. Total unit volume for these categories, shoe care, body care, insecticides and air fresheners, grew 4% for both the quarter and the full year. The air freshener business, in particular, posted double-digit unit gains in both periods, reflecting the success of product introductions in new markets, including Sara Lee’s entry into the U.S. air freshener market with Ambi-Pur LiquiFresh, a two-in-one toilet bowl cleaner and air freshener. In addition, Sara Lee continued the expansion of its Sanex body care brand, with introductions in Australia and Malaysia. The company currently markets Sanex in more than 30 countries.

For the year, sales for the Direct Selling operations within household products rose on the strength of improved business in a number of developing nations in Latin America and Asia plus continued growth at Fuller Mexico.