Scotts Miracle-Gro 4Q loss narrows

MARYSVILLE, Ohio (AP) - The Scotts Miracle-Gro Co. said Thursday its fiscal fourth-quarter loss narrowed, crediting a sales increase stemming from continued strong consumer demand for lawn and garden products.

For the quarter ended Sept. 30, Scotts posted a loss of $14.9 million, or 23 cents per share, compared with a loss of $34.7 million, or 54 cents per share, for the same quarter last year.

Excluding charges related to the closure of its upscale Smith & Hawken retail chain along with product registration and recall matters, the company posted an adjusted loss of $21.5 million, or 33 cents per share, compared with an adjusted loss of $17.5 million, or 27 cents per share.

Scotts said in July that it would close Smith & Hawken by the end of the year. The Novato, Calif.-based business sells outdoor furniture, decor and lighting, gardening tools and plants.

Sales rose 7.2 percent to $583.4 million from $544.2 million.

The loss was in line with Wall Street predictions. Analysts polled by Thomson Reuters expected a loss of 33 cents per share on $555.7 million in revenue.

Global consumer sales rose 11 percent to $364.4 million for the quarter.

"We believe our late-season investment in marketing, along with continued support from our retail partners, helped to drive the sale of fall products," Jim Hagedorn, the company's chairman and CEO, said in a statement. "Continued growth of our fall season products will be a key to our long-term success."

Excluding the impact of foreign exchange, global consumer sales rose 12 percent and included a North American increase of 13 percent and a European increase of 6 percent.

Scotts LawnService sales fell 10 percent to $80.5 million, while global professional sales declined by 12 percent to $77.7 million.

For the full fiscal year, Scotts earned $153.3 million, or $2.32 per share, compared with a loss of $10.9 million, or 17 cents per share, the year before. Sales rose to $3.14 billion from $2.98 billion.

The company projected a 2010 profit of $3 to $3.10 per share on sales growth of 3 percent to 5 percent. Based on the company's 2009 sales, the guidance projects 2010 sales of $3.23 billion to $3.3 billion.

Analysts, on average, expect a profit of $3.05 per share on sales of $3.1 billion.