Spectrum Brands lowers 2009 net income predictions

April 10, 2009 – 7:48 pm – No Comment

Spectrum Brands makes Rayovac batteries, Remington grooming tools, and insect repellents under the name Hot Shot, Cutter, and Repel.

The company filed for Chapter 11 bankruptcy protection in February and is now lowering its net income predictions for 2009 by 23%. It expects to earn $30 million this year instead of the $39 million it expected earlier this year.

It also posted a loss of over $100 million for the first quarter 2009.

All of Spectrum Brands’ major performance measures have declined between the initial February projection, and the amended figures released April 10.

Revenue growth, now pegged at $2.2 8 billion for this year, is expected to decline one percent between 2009 and 2010. Initial projections estimated 2.2 percent growth from 2009 to 2010.

The company also project margins on cost of sales, now at 37 percent, and operating expenses, now at 12 percent, to be lower than initial estimates of 38 percent and 13 percent, respectively.

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