07.02.08
Greenwich, CT
203.661.1926
www.blythinc.com
Sales: $1.1 billion
Sales:
$1.1 billion. Net income: $11.1 million.Key Personnel:
Robert B. Goergen, chairman and chief executive officer, Robert H. Barghaus, vice president and chief financial officer; Robert B. Goergen Jr., vice president and president, Multichannel Group; Anne M. Butler, vice president and president, PartyLite Worldwide; Jane F. Casey, vice president, treasurer; Michael S. Novins, vice president, general counsel and secretary; Tyler P. Schuessler, vice president, organizational development and investor relations; Edward J. Scannell, vice president, internal audit; Joseph T. Cirillo, vice president, reporting and planning.Major Products:
Candles and home fragrance products. Brands include PartyLite, Miles Kimball, Exposures, Walter Drake, Boca Java, Colonial Candle, CBK, Seasons of Cannon Falls and Ambria.Comments:
The spark is still slight at this candle and home fragrance company. Net sales for the fiscal year ended Jan. 31, 2008 declined 5% to $1.1 billion. According to Blyth, excluding the sale of the BHI North American mass channel candle business, net sales for the year would have been approximately even with the prior year.However, operating income for the fiscal year was up 10% to $30.9 million. Net income for the year was $11.1 million, compared to a loss of $103.2 million last year caused by a $105.7 million after tax loss from discontinued operations of Blyth’s European wholesale businesses.
For the first quarter ended April 30, 2008, financials in general were still bleak as net sales declined 8% to $249.8 million. Operating profit dropped 7% to $10 million, reflecting lower sales and profits within PartyLite U.S. and higher seasonal losses from most of Blyth's wholesale and catalog/internet businesses.
Commenting on the company’s financial results, Robert B. Goergen, Blyth’s chairman and chief executive officer, said, “The continued deterioration of the macroeconomic environment and its impact on consumer spending had an immediate and decisive impact on sales across Blyth’s U.S. businesses. Moreover, cost increases for commodities such as wax and increased paper, postage and freight expenses made achieving our first quarter profit targets very challenging.''
However, there could be a light at the end of the tunnel. Mr. Goergen continued, “Despite these obstacles, we are very pleased that PartyLite Europe continues to grow, with the French and Nordic markets being particular bright spots. Moreover, our Sterno business turnaround is well under way, and they are on track to report a strong year.”
