Oct. 20, 2009 (PR Newswire) --

ORLANDO, Fla., Oct. 20 /PRNewswire-FirstCall/ -- Tupperware Brands Corporation (NYSE: TUP) today reported third quarter 2009 sales and profit. Third quarter 2009 sales increased in local currency by 9% versus 2008, before a negative impact from foreign exchange rates of 9%. This resulted in GAAP sales that were slightly above 2008.

Chairman and CEO, Rick Goings commented, "We are pleased to report another strong quarter of local currency sales growth, which was above the high end of the guidance we gave in July. We delivered top line growth in local currency in all five segments. Our emerging markets, which comprised 56% of total sales in the quarter, were up 15% in local currency, and there were a significant number of markets with double digit increases, including Tupperware Brazil, India, Indonesia, Korea, Malaysia, Russia, South Africa, Turkey, Venezuela and Fuller Mexico. The established markets were up 2% in local currency, continuing the significant improvement in trends as we've moved through the year. We achieved increases in a number of these markets including Tupperware Australia, Austria, France, Greece, Japan and the United States. Also important to highlight is that our large Tupperware Germany business was even with last year, reversing the negative trends we saw in the beginning of the year."

"Our management teams around the world continue to achieve sales growth by focusing on the fundamentals of our business, and we have seen both our emerging and established markets strengthen. We were able to achieve 52% local currency net income growth excluding items, which was significantly higher than our local currency sales growth primarily through our robust contribution margin from higher sales. In addition we generated $35 million from operating activities net of investing activities in the quarter, enabling us along with available cash, to pay down another $60 million of term loans" said Rick Goings.

Diluted GAAP earnings per share of 50 cents for the third quarter of 2009, which was up 7 cents versus last year, included net negative 4 cents from items impacting comparability in both years and negative 11 cents versus 2008 from weaker foreign currencies.

Adjusted diluted earnings per share of 54 cents was 16 cents better than the high end of the guidance range given in July. This was also up 7 cents, or 15% versus the prior year, overcoming the negative 11 cent impact on the comparison from foreign exchange. Excluding the impact of currency on the comparison, adjusted diluted earnings per share increased by 50%. In addition to the contribution margin from the higher sales, the increase versus last year came primarily from an improved sales mix and lower raw materials costs. Partially offsetting these factors was a cost in 2009 of $4.9 million for converting Venezuelan bolivars to U.S. dollars and a higher tax rate of 23.9% in 2009 versus 15.4% in the 2008 quarter (24.1% in 2009 versus 15.7% in 2008 excluding items).

Tupperware Brands will conduct a conference call tomorrow, Wednesday October 21, 2009 at 10:00 am Eastern time. The conference call will be webcast and archived along with a copy of this news release on www.tupperwarebrands.com.

Third Quarter Segment Highlights*

Tupperware Segments

In Europe, third quarter sales were up 6% versus prior year in local currency (down 1% reported). Established markets were up 4% compared to last year in local currency (even with last year reported) and included double digit increases in France and Austria, as well as a high single digit increase in Greece. The German business was even with last year after being down in the first two quarters. The emerging markets were up 9% in local currency (down 2% reported). Growth came primarily from strong double digit increases in Tupperware South Africa and Russia. For Europe overall, profit was up 67% versus prior year in local currency (up 45% reported). Total sales force in the segment was up 14% at the end of the third quarter and the average active sales force was up 5% in the third quarter.

Asia Pacific sales were up 18% in local currency (up 17% reported) in the quarter with emerging markets up 26% in local currency (up 19% reported). The growth continued to be led by India, Indonesia, Korea, and Malaysia/Singapore, which were all up strongly versus the prior year, partially offset by a single digit decrease in China that was lower than in the second quarter. The established markets were up 9% versus prior year in local currency (up 13% reported) and included a return to growth in Tupperware Australia with a low single digit increase in the quarter after being down last quarter, and double digit growth in Tupperware Japan. Profit was up 36% in local currency (up 27% reported). Total sales force was up 25% at the end of the third quarter and the active sales force was up 24% in the quarter.

Tupperware North America sales were up 7% in local currency (down 4% reported) versus prior year, and included a mid single digit increase in Mexico, where the comparison was negatively impacted by the timing of business to business sales, and a high single digit increase in the United States and Canada. Profit for the segment was up 65% in local currency (up 42% reported). The total sales force size at the end of September was up 4%, and the active sales force for the quarter was up 11%.

Beauty Segments

Beauty North America sales were up 2% in local currency (down 13% reported) reflecting a double digit increase by Fuller Mexico, partially offset by a double digit decrease by BeautiControl. BeautiControl is continuing to focus on strengthening the business by re-emphasizing selling through the party and recruiting sales force members under the earnings opportunity. Fuller Mexico achieved a double digit increase in local currency sales after being down in the first two quarters, although the sales force size was down slightly at the end of the third quarter. The segment's profit in the quarter decreased 8% in local currency (down 31% reported). The total sales force size at the end of the quarter was down 4%, and the active sales force for the segment was up 2% versus prior year.

Beauty Other sales were up 16% in local currency (up 7% reported), with most of the increase coming from Tupperware Brazil and Venezuela. Profit of $2.0 million, improved from a $2.2 million loss in the prior year primarily from the contribution margin associated with the higher local currency sales, along with value chain improvement in Brazil, and included $4.9 million in pre-tax costs to convert Venezuelan cash to U.S. dollars. In the first quarter of 2009, the Company began selling beauty products in Brazil through its Tupperware sales force rather than through the separate beauty business it had been operating. This contributed to the profit improvement since the separate beauty business operated at a loss in 2008. The total sales force advantage for the segment was 2%, and active sellers were down 5% from the prior year.

Year to Date Results

For the first nine months of 2009, total company sales grew 5% in local currency (down 8% reported). The Tupperware brand segments grew 6% in local currency (down 6% reported) and the Beauty brand segments were up 2% in local currency (down 13% reported). Businesses operating in emerging markets, comprising 52% of total company sales grew 12% in local currency (down 8% reported) and the rest of the businesses that operate in established markets were down 2% in local currency (down 9% reported). The total sales force was up 7% at the end of September and active sellers were even with 2008 for the year-to-date period. Profit from the operating segments rose 35% in local currency (10% reported), including double-digit improvements in all segments except Beauty North America which was slightly above last year. There were significant improvements in the emerging markets of Tupperware Brazil, Indonesia, Mexico, and South Africa and the established markets of France, Germany and the United States. Diluted earnings per share was $1.44, up 41% in local currency (down 4% reported). Excluding certain adjustment items for the first nine months of 2009, diluted earnings per share was $1.86, up 43% in local currency (up 4% reported).

Fourth Quarter 2009 Outlook

The fourth quarter sales outlook is for a 6 to 8% increase in local currency, and an increase of 17 to 19% reported. GAAP diluted earnings per share is expected to be $1.06 to $1.11, with a net positive impact of 8 cents from items impacting comparability. Excluding these items, diluted earnings per share is forecast to be $0.98 to $1.03. This compares with GAAP diluted earnings per share of $1.05 last year and 90 cents excluding certain items.** The guidance reflects a positive impact on the comparison of 16 cents from stronger foreign currencies, and includes an increase in pre-tax profit, excluding unusual items, 6 to 10% and a tax rate of 23.8% versus 15.5% in 2008.

Full Year 2009 Outlook

Full year 2009 sales are expected to increase in local currency versus 2008 by 5 to 6%, compared with the previous guidance range of a 3 to 5% increase. Based on current foreign exchange rates there is an 8 percentage point negative impact on the comparison, resulting in a reported sales decrease range of 2 to 3%. The local currency sales increase includes a low double digit increase from businesses in the emerging markets and sales down slightly versus last year in the established market businesses. Earnings per share on a GAAP basis is expected to be $2.50 to $2.55, with a net negative impact of 34 cents from items impacting comparability. Excluding these items, diluted earnings per share is forecast to be $2.84 to $2.89 (see detail in the Non-GAAP Financial Measures Outlook Reconciliation schedule). This compares with GAAP diluted earnings per share of $2.55 last year and $2.68 excluding certain items.** There is a negative 34 cents impact versus 2008 from foreign currency rates in this outlook. Excluding the impact of foreign exchange on the comparison, this represents an increase over the prior year of 21 to 24% and compares with the July 2009 guidance range of $2.59 to $2.64, which represented a 16 to 18% increase in local currency. This outlook uses current foreign exchange rates for the fourth quarter of 2009.

Full Year 2010 Outlook

The initial outlook for full year sales growth is an increase of 6 to 8% in local currency, and with a 6% benefit from foreign exchange is an increase of 12 to 14% reported. The local currency increase foreseen for units operating in emerging markets is 12 to 14%, and the increase for units operating in established markets is 1 to 2%. This is in line with the Company's longer term guidance that was last raised in October 2008. GAAP diluted earnings per share is forecast to be $3.17 to $3.27, with a net negative 16 cents from items impacting comparability. Excluding these items, diluted earnings per share is forecast to be $3.33 to $3.43 (see detail in the Non-GAAP Financial Measures Outlook Reconciliation schedule). This compares with the mid-point of the 2009 GAAP diluted earnings per share range of $2.52 and $2.86 excluding certain items, and includes a positive 27 cents impact versus 2009 from current foreign currency rates. Excluding the impact of foreign exchange on the comparison, the outlook range includes an increase in pre-tax profit of 10 to 13%, along with a tax rate of 25% versus 23% in 2009.

Rick Goings, Chairman and CEO, commented, "Even with the strong improvements this quarter, we believe we still have room to grow our businesses as indicated in our forecast for 6 to 8% local currency sales growth in the fourth quarter of 2009 and in 2010. Being a global portfolio of direct selling companies has helped us to provide consistent top and bottom line growth even in a challenging macro economic environment. As we go into the fourth quarter and beyond we will continue to focus on the fundamentals that strengthen our business: developing innovative and desirable products, creating a selling situation that is fun and profitable, and promoting a compelling earnings opportunity for our salesforce. We are also focused on the key business metrics that will sustain our continued growth and profitability, including continued growth in the size of our sales force and working to get new recruits active in the business quickly. Together these will continue to drive our top line sales growth."

"Our management teams are working hard and doing the right things in running our businesses, and are energized and looking ahead to 2010. We believe that we have the right products and business models in place, and expect continued growth in the future. After all, we have a lot of white space before us in our established markets and substantial room to grow in our emerging markets."

Increased Quarterly Dividend Declared

The Company's board of directors declared today a 25 cent dividend, payable to shareholders of record as of December 4, 2009 that will be paid on January 4, 2010. The $1.00 per share annual dividend implied reflects a 14% increase in the quarterly dividend from the 22 cents per quarter paid since the Company became public in 1996. The increased dividend is approximately equal to 35% of the high end of the 2009 diluted earnings per share outlook range announced in this release, excluding unusual items.

Accelerated Share Repurchases

Since May 2007 under a $150 million authorization, the Company has been partially offsetting the dilution from stock option exercises by repurchasing shares using proceeds received from exercises. Today the Company's board of directors approved increasing repurchases to further offset the dilution associated with shares that become outstanding under the Company's incentive programs. Through the end of the third quarter of 2009, $91 million of repurchases had been made using option proceeds since the program began, including $26 million in the third quarter. In the fourth quarter of 2009, the goal is to repurchase shares valued at approximately $40 million plus any option proceeds received.

Debt Target

Year-to-date through the third quarter, the Company had paid off $80 million of its term loans, bringing the outstanding balance to $465 million. In light of the expected cash flow generation from its operating activities, net of investing activities, and considering the dividend and share repurchase actions described above, the Company anticipates making further reductions in its outstanding debt in the fourth quarter of 2009 and future years.

* See Non-GAAP Financial Measures Reconciliation Schedule. Amounts discussed in Segment Highlights are on a GAAP basis and include purchase accounting amortization.

** 2008 Basic and Diluted earnings per share has been recast to conform to new earnings per share accounting guidance adopted in the first quarter of 2009. As a result, this reduced the 2008 third and fourth quarter and full year diluted earnings per share by $0.01 versus the originally reported amounts.

Tupperware Brands Corporation is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.4 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for consumers through the Armand Dupree, Avroy Shlain, BeautiControl, Fuller Cosmetics, NaturCare, Nutrimetics, Nuvo and Swissgarde brands.

The Company's stock is listed on the New York Stock Exchange (NYSE: TUP). Statements contained in this release, which are not historical fact and use predictive words such as "outlook", "expects" or "target" are forward-looking statements.