Jarden 3Q profits triple
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- October
- 30
Profits more than tripled at Jarden Corp. during the third quarter as the Rye-based consumer products company benefited from past acquisitions and budget-minded consumers buying the company’s home-oriented products in a slow economy.
Jarden shares surged nearly 17 percent in trading today after the company’s earnings and revenues exceeeded the expectations of industry analysts.
“Our diversified business model delivered another record quarter, with organic sales growth and increased segment earnings in each of our three primary business segments,†Martin E. Franklin, chairman and chief executive officer, said in a written statement.
Jarden’s net sales increased 10 percent to $1.5 billion during the quarter. Net income of $63.8 million, or 83 cents a share, surged from net income of $21.2 million, or 28 cents a share, a year earlier.
Investors have been worried that the slowing economy and global financial crisis will hurt consumer spending, which accounts for about two-thirds of U.S. economic activity.
Some of the hardest hit sectors have been auto companies, home builders and refrigerator manufacturers that sell big-ticket items that consumers can delay buying in tough times. But Jarden may be less exposed to the slowdown because it generally sells hundreds of less expensive items such as Ball canning jars, Diamond matches, clothespins, plastic forks, toothpicks and straws.
Such products still have a “relevance†to the budget-minded consumer, even in tough economic times, according to Franklin.
“We have often said that the more time consumers spend in and around the home the better it is for many of our businesses and we experienced this particularly in our Ball fresh preserving business, First Alert safety systems, Coleman outdoor equipment and in the FoodSaver appliance category in the third quarter,†Franklin said.
Since Franklin took over as CEO in September 2001, he has built the company through a series of acquisitions that added a diverse mix of brands. Last year, Jarden bought fishing gear maker Pure Fishing Inc. and K2 Inc., the manufacturer of Rawlings sports equipment and Völkl skis.
“In these uncertain times we are particularly pleased that we have maintained our strong liquidity position as we head into our highest cash flow quarter of the year,†Franklin said.
Jarden shares rose $2.32 to $16.08 in trading today on the New York Stock Exchange.
This entry was posted
on Thursday, October 30th, 2008 at 12:24 pm by Jay Loomis.
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Category: Earnings season, Uncategorized
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