Marysville, Ohio-The Scotts Miracle-Gro Co. reported a 14 percent increase in revenues for the first quarter ending Dec. 29, 2007, to $308.7 million from the year-ago $271.2 million. While the company continued to post a seasonal loss, earnings did improve by 4 percent, to a loss of $56.8 million ($.89 per diluted share), versus the year-ago loss of $59.4 million ($1.09 per share). “We had a strong start to the year with good sales growth throughout the business and control over expenses,” said Jim Hagedorn, Scotts chairman and CEO. “We are well positioned as we prepare for the beginning of the lawn and garden season. We continue to see strong support from our retail partners, and we remain confident that consumers will remain committed to the category and to our brands.” Scotts reported strong consumer demand, even though the quarter normally only represents 10 percent of annual sales. “Consumer purchases of lawn fertilizer improved 7 percent in the quarter, which reinforces our confidence that consumers remain engaged in the category in spite of the economic concerns. We also saw a nearly 60 percent year-over-year improvement in grass seed purchases and a 10 percent improvement in growing media.” Scotts LawnService had revenues of $38.3 million, up from $25.8 million. “With the launch of new products this year, and a larger investment in both marketing and sales support, we remain confident that sales this year can grow 6-8 percent and that operating profits will improve by as much as 6 percent,” said Dave Evans, CFO. “Due to the incremental interest expense impact of our recapitalization in mid-2007 and our decision to make investments in several long-term projects this year we remain committed to our guidance that adjusted net income for fiscal 2008 will be flat to slightly down from 2007 levels.”
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