Charges and lower revenue hurt Energizer's profit

ST. LOUIS (AP) — Consumer-goods company Energizer Holdings Inc. said Tuesday its fourth-quarter profit declined amid charges for staff reductions as revenue also took a hit.

The company, which makes Energizer batteries, Schick razors and Banana boat sun-care products, said earnings declined to $37.1 million, or 53 cents per share, compared with $99.1 million, or $1.67 per share, last year. Shares fell nearly 11 percent.

Earnings included 38 cents per share in charges for its previously announced voluntary enhanced retirement program, business realignment and integration initiatives. Results also included 4 cents per share for a tax provision and 3 cents per share for the sale of inventory purchased in the Edge and Skintimate shave preparation acquisition. It also had a higher average shares outstanding.

Sales declined 4 percent to $1.08 billion, with particular weakness in its household-products division, which dropped 14 percent.

Analysts surveyed by Thomson Reuters had expected a profit of $1.16 per share on $1.06 billion in sales. Analysts usually exclude one-time items from their estimates.

The company implemented implemented restructuring efforts and focused on reducing debt during the quarter, said CEO Ward Klein.

For the twelve months ended Sept. 30, the company reported earnings of $297.8 million, or $4.72 per share, compared with $329.3 million, or $5.59 per share, the previous fiscal year. Revenue declined slightly, to $4 billion.

The company said it remains cautious regarding consumption trends in most categories in the near term because of weak consumer spending.

In fiscal 2010, Energizer said it may record earnings growth in the low-double digits, excluding unusual items. However, around 70.8 million shares outstanding will lower earnings per share, by 30 cents per share to 40 cents per share.

Energizer shares fell $6.54 to $53.72 in afternoon trading. The broader markets also declined.