Marysville, Ohio-The Scotts Miracle-Gro Co. posted a full-year net loss of $10.9 million ($.17 per share) on sales of $2.99 billion for the year ending Sept. 30, 2008, versus the prior year net income of $113.4 million ($1.69 per share) on sales of $2.9 billion. Scotts noted that adjusted net income for fiscal 2008 – which excludes one-time charges primarily related to product recalls, registration issues, and impairment – was $134.1 million, or $2.05 per share, which was in line with guidance given by the company back in May. Scotts reported a 14 percent increase in net income in the fourth quarter compared to a loss of $34.7 million ($.54 per diluted share), versus the year-ago loss of $40.3 million ($.63 per share). However, sales were up 7 percent, to $544.2 million from the year-ago $508.9 million. “We’re satisfied with the full-year results we are reporting and encouraged by the positive sales momentum in the fourth quarter,” said Jim Hagedorn, Scotts chairman and CEO. He cited double-digit growth throughout the Midwest and solid results in the Northeast and Mid-Atlantic. He said the gardening business is particularly strong. While the lawn fertilizer business declined for the year, he said the Scotts Builder Plus 2 finished 2008 with 20 consecutive weeks of growth compared to last season. He said the flagship product, Scotts Turf Builder fertilizer, also saw consistent growth. “While the economic climate is challenging, we are cautiously optimistic that we can meet our guidance of $2.00 per share (fiscal 2009) and, perhaps, perform even better depending on the level of consumer engagement next spring,” said Hagedorn. He noted an improving commodity market and strong consumer programs for next season with supportive retail partners.
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