Jarden Reports Q3 Sales Declines, Gross Margin Improvements
Thursday October 25th, 2012 - 11:19AM
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For the third quarter, Jarden Corp. reported a decline in net sales to $1.71 billion versus net sales of $1.78 billion for the comparable year-earlier period with organic net sales declining 1.8% or $32 million. For the first three quarters, the company reported net sales declined to $4.88 billion compared to $4.94 billion in the 2011 period.
Through the first three quarters of the year, the company reported that organic net sales grew 1.5% or by $73 million.
On a more positive note, the company reported that gross margin increased 40 basis points to 29.4% for the 2012 third quarter of 2012 versus gross margin of 29%, for the same period in 2011. Adjusted gross margin for the quarter increased 80 basis points to 30% compared to adjusted gross margin of 29.2%, for the 2011 period.
For the first three quarters, the company reported, gross margin increased 80 basis points to 29.1% compared to gross margin of 28.3% for last year's period while adjusted gross margin increased 80 basis points to 29.3%.
"I am pleased with our performance in both the quarter and year to date ,” said James Lillie, Jarden CEO. "Our diversified business model allowed us to deliver strong earnings and cash flow in the quarter. We achieved this performance despite the well known topline challenges we forecasted stemming from the warm winter of 2011-12. Notwithstanding the year over year weather related revenue impact, we are pleased that our strong gross margin performance also led to expanded segment earnings margins, and we remain on track to exceed last year's strong cash flow performance in 2012. We expect that the healthy momentum across each of our business segments should result in continued strength in fiscal 2013, with growth in line with our stated long-term objectives."
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