Spectrum Brands posts $33.2 million first-quarter operating income

By Caroline Salls

Pittsburgh, May 5 - Spectrum Brands, Inc. reported a $33.2 million operating income for the quarter ended March 29 on $503.3 million in net sales, according to a company news release.

In comparison, the company posted a $6.4 million operating income for the quarter ended March 30, 2008 on $532.5 million in net sales.

The net loss for the first quarter of 2009 was $60.4 million, narrowing from a $111.7 million net loss for the same period of 2008.

According to the release, the net loss included items that the company believes are not indicative of its ongoing operations, including a $21 million net tax adjustment, a $15.8 million net loss from discontinued operations, $13.9 million in reorganization items, $10.5 million of restructuring and related charges and $1.5 million for the write off of deferred financing costs related to the company's asset based revolver loan that was paid off in March.

In addition, the company recorded a $58.4 million operating income for the six months ended March 29 on $1.05 billion in net sales, compared with $45.8 million in operating income on $1.12 billion for the six months ended March 30, 2008.

The net loss for the latest six-month period was $173.1 million, widening from a $155.1 million net loss posted in the six months ended March 30, 2008.

Spectrum had $51.6 million in cash at March 29, down from $81.5 million at March 30, 2008.

Spectrum Brands is an Atlanta-based consumer products company and supplier of batteries, lawn and garden products, pet supplies, shaving and grooming products, household insect control products, personal care products and portable lighting.

The company filed for bankruptcy on Feb. 3 in the U.S. Bankruptcy Court for the Western District of Texas. Its Chapter 11 case number is 09-50455.

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