Dallas, Texas 05/01/2014 (FINANCIALSTRENDS) – Energizer Holdings, Inc. (NYSE:ENR) yesterday announced it 2Q14 earnings. The conference was attended by Energizer’s Chief Executive Officer, Ward Klein; Chief Financial Officer, Dan Sescleifer; and Vice President of Investor Relations, Jacqueline E. Burwitz.
The company reported 3% decline in its revenue as organic net sales decreased by 12.7% in 2Q14 on a year over year basis. This was mainly attributed to higher promotional spending, withdrawal of some of the non-core product lines during FY13, loss of distribution within couple of U.S. retail customers, pricing controls and increased competitive pressures. The company also mentioned about inventory import restrictions in certain Latin American countries as one of the reason behind decreased organic net sales.
The Stock Booster:
The stock of Energizer Holdings, Inc. (NYSE:ENR) jumped 14.31% during yesterday’s trade and closed at $111.69. The closing price indicates that the stock closed above its 200 day moving average of $100.
The reason behind this rally in the stock price was the Energizer’s announcement to split its businesses into two main divisions to unlock the shareholder’s value. The company anticipates a spinoff to occur around the end of FY15.
Energizer’s management believes that splitting off its battery division and personal care division will allow a clearer focus to each business. Though its personal care division is not much known it has shown significant net income in recent years backed by much stronger sales growth.
Energizer Holdings, Inc. (NYSE:ENR)’s CEO, Ward Klein said, “We expect that Household Products will be well-positioned to leverage its leading brands and product portfolio to generate significant cash flows. And the Personal Care business has achieved scale to be able to enhance its focus on continuing innovation and to drive top-line and market share growth.”
Mr. Klein mentioned that Energizer has built two successful divisions since it became an independent company in 2000 and now each of it is well-positioned to realize its full potential on an independent basis.