Marysville, Ohio-The Scotts Miracle-Gro Co. was hammered by extra charges during the third quarter ending June 28, 2008, which took net earnings down 83 percent to $22.6 million ($.35 per diluted share) compared to the year-ago $129.7 million ($1.98 per share). Excluding extra charges, second-quarter earnings would have been $130.7 million. The charges included $10.2 million of pre-tax costs incurred due to recent recalls and registration issues, as well as a non-cash pre-tax impairment charge of $123.3 million related to certain intangible assets. Scotts said like many companies, the recent decline in its equity value forced it to accelerate normal impairment testing. Scotts said it does not believe the impairment is indicative of long-term expectations for the business, though it is reflective of an accounting process that is significantly driven by the company’s recent share price. On the positive side, sales were up 7 percent, to $1.17 billion from the year-ago $1.098 billion. Sales in the global consumer segment increased 6 percent to $930.1 million. This was led by strong growth in lawn fertilizer, grass seed, and growing media in the U.S. Consumer purchases in those categories improved 17, 21, and 9 percent, respectively. Global professional and Scotts LawnService sales were up 32 and 3 percent, respectively. Nine-month net income was $23.8 million ($.36 per share) on sales of $2.44 billion, compared to the year-ago $153.7 million ($2.28 per share) and $2.36 billion.
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