Spectrum Brands Holdings Inc.’s global pet supplies division reported net income of $15.1 million on net sales of $143.8 million for the third quarter ended July 3, 2011, compared with net income of $17.2 million on net sales of $136.1 million in the year-ago period.
The recent reclassification of certain pet products into the pet division from the former small appliances division accounted for a net sales increase of $3.2 million in the third quarter of 2011.
The Madison, Wis.-based company that owns United Pet Group, attributed the higher revenues to increased pet sales at large retail outlets. The company also reported that foreign exchange positively impacted these results by $4.8 million.
“In global pet supplies, we’re encouraged by improving volume trends driven by key distribution gains at several major retailers, including new product launches in our Dingo and Nature’s Miracle lines as well as in our Tetra aquatics categories,” CEO Dave Lumley told investors during a conference call today.
Overall, the company returned to a profit in the third quarter. Spectrum reported net income of $28.6 million on net sales of $804.6 million for the third quarter of fiscal 2011, compared with a net loss of $86.5 million on net sales of $653.5 million.
For the first nine months, Spectrum posted a net loss of $41.3 million on net sales of $2.4 billion, compared with a net loss of $165.8 million on net sales of $1.8 billion in the first nine months of fiscal year 2010.
“In today’s world of sluggish consumer demand, tighter retailer inventories and rising costs, we believe we have the correct strategy for our portfolio of branded and trusted products, delivering superior margins and lower acquisitions costs to our retail customers and offering consumers worldwide the same product performance at a better price of better performance at the same price,” Lumley said.