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MARYSVILLE, Ohio, Dec. 29 /PRNewswire-FirstCall/ -- The Scotts Miracle-Gro
Company, (NYSE: SMG), the worlds leading marketer of branded consumer lawn
and garden products, said today it expects its first quarter net loss to be
15-20 percent greater than a year earlier due to a continued shift in the
timing of retailer purchases.
In the first quarter of fiscal 2005, the Company reported a loss of $49
million, or $0.75 per share. Due to the seasonal nature of its business,
ScottsMiracle-Gro traditionally reports a loss in the first quarter, which
ends in December.
"The increased loss in the quarter is the result of a continued trend by
our retail partners to take delivery of our products closer to the time they
are purchased by consumers," said Jim Hagedorn, chairman and chief executive
officer. "Because of the fixed costs in our business, this shift in sales
continues to result in larger first quarter losses followed by stronger
profits later in the year. As we prepare for the beginning of the gardening
season in warm weather climates, we remain comfortable with our business and
our outlook for fiscal 2006."
The Company also clarified its full-year earnings projections, saying that
it expects adjusted net income to increase 20 to 22 percent from 2005 levels.
About ScottsMiracle-Gro
With more than $2.3 billion in worldwide sales and more than 6,000
associates, The Scotts Miracle-Gro Company, through its wholly-owned
subsidiary, The Scotts Company LLC, is the worlds largest marketer of branded
consumer products for lawn and garden care, with products for professional
horticulture as well. The Companys brands are the most recognized in the
industry. In the U.S., the Companys Scotts(R), Miracle-Gro(R) and Ortho(R)
brands are market-leading in their categories, as is the consumer Roundup(R)
brand, which is marketed in North America and most of Europe exclusively by
Scotts and owned by Monsanto. The Company also owns Smith & Hawken, a leading
brand of garden-inspired products that includes pottery, watering equipment,
gardening tools, outdoor furniture and live goods. In Europe, the Companys
brands include Weedol(R), Pathclear(R), Evergreen(R), Levington(R), Miracle-
Gro(R), KB(R), Fertiligene(R) and Substral(R). For additional information,
visit us at http://www.scotts.com.
Statement under the Private Securities Litigation Act of 1995: Certain of
the statements contained in this press release, including, but not limited to,
information regarding the future economic performance and financial condition
of the company, the plans and objectives of the companys management, and the
companys assumptions regarding such performance and plans are forward looking
in nature. Actual results could differ materially from the forward-looking
information in this release, due to a variety of factors, including, but not
limited to:
- Adverse weather conditions could adversely affect our sales and
financial results;
- Our historical seasonality could impair our ability to pay obligations
as they come due and operating expenses;
- Our substantial indebtedness could adversely affect our financial
health;
- Public perceptions regarding the safety of our products could adversely
affect us;
- The loss of one or more of our top customers could adversely affect our
financial results because of the concentration of our sales to a small
number of retail customers;
- The expiration of certain patents could substantially increase our
competition in the United States;
- Compliance with environmental and other public health regulations could
increase our cost of doing business; and
- Our significant international operations make us more susceptible to
fluctuations in currency exchange rates and to the costs of
international regulation.
Additional detailed information concerning a number of the important
factors that could cause actual results to differ materially from the forward
looking information contained in this release is readily available in the
Companys publicly filed quarterly, annual and other reports.
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