Marysville, Ohio-Scotts Miracle-Gro Co. reported a 3 percent increase in sales during the first quarter ending Dec. 27, 2008, to $318 million from the year-ago $308.7 million. The improvement was led by a 9 percent increase in its global consumer business and a 5 percent improvement in global professional. Scotts LawnService revenues were up 1 percent, while those for specialty retailer Smith & Hawken were off 23 percent due to a sharp decline in holiday sales. Scotts remained in the seasonal net loss column at $57 million ($.88 per diluted share), versus the year-ago $56.8 million ($.89 per share). Scotts increased its full-year outlook on an adjusted basis to a range of $2.10-$2.30 per share as a result of lower-than-expected commodity inflation, incremental volume in private label categories, and favorable interest rates. Previously, the company said it expected adjusted earnings for the year of $2.00 per share. Scotts also expects to generate free cash flow of $150-$170 million for the year, growth of up to 20 percent relative to 2008. “Strong retailer support, combined with our new product offerings and aggressive marketing plans, give us positive momentum as we enter the season,” said Jim Hagedorn, Scotts CEO and chairman. “Our success in 2009, however, will be based on keeping consumers engaged in lawn and garden ?Çô a category that has historically fared well in economic downturns.” Analysts have noted that Scotts should benefit in 2009 due to the loss of one private label competitor, Spectrum Brands Inc., which has moved out of the growing media business.
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