(Source: St. Louis Post-Dispatch)
ST. LOUIS _ Energizer Holdings Inc., the Missouri-based seller of batteries, sunscreen, razors and feminine products, warned of "market uncertainty" on Tuesday in announcing a drop in third-quarter sales. The company announced a restructuring plan to cut overhead costs and slim its manufacturing and sales operations.
The plan will combine voluntary enhanced retirement severance packages with involuntary layoffs. The costs of the restructuring are expected to be in the range of $22 million to $28 million. It was not clear how many jobs would be cut in the St. Louis area.
In the third quarter ending June 30, Energizer's total net sales fell 6 percent or $69 million, to $998 million. Profits were $73 million versus $66.7 million in the third fiscal quarter of 2008.
Ward Klein, Energizer's chief executive, said the company's sales and earnings continue to hold up despite a tough economic environment. But he ackowledged "shortfalls' in the company's battery business, negative effects from currency exchange rates and a "globally weak consumer environment." Energizer said it expects a difficult fourth quarter.
"Longer-term, we need to insure our cost structure remains aligned to the difficult consumer and macro-economic environment that prevails, while maintaining our investment in existing brands and new products," Klein said in a statement.
___
(c) 2009, St. Louis Post-Dispatch.
Visit the Post-Dispatch on the World Wide Web at http://www.stltoday.com/
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
A service of YellowBrix, Inc.
