Marysville, Ohio — The Scotts Miracle-Gro Co. reported net income of $93.3 million ($1.50 per diluted share) on sales of $1.06 billion for the third quarter ending June 30, 2012, compared to the year-ago $111.6 million ($1.69 per share) on sales of $1.06 billion. “After a strong start to the season, consumer engagement clearly began to decline in May and June,” said Jim Hagedorn, Scotts chairman and CEO. “We’re pleased to see strong year-over-year improvement in consumer purchases of mulch and controls, but our fertilizer and growing media categories are flat so far this year and have not delivered the results expected.” Other factors impacting earnings included commodity costs, advertising, freight for expedited shipments to meet strong March demand, costs associated with innovation in the Ortho product line, and unfavorable product mix. Hagedorn said the company is focused on several initiatives to improve margins and reduce expenses, including price increases. “While we will continue to evaluate acquisition opportunities, our near-term focus will be on restoring our current business to an appropriate level of profitability, not on integrating something new.” Nine-month net income is off 34 percent to $146.6 million ($2.36 per share) on sales of $2.45 billion, compared to the year-ago $221.3 million ($3.37 per share) on sales of $2.42 billion.
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