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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report:
August 3, 2006
------------------------------------------
(Date of earliest event reported)
SPECTRUM BRANDS, INC.
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(Exact Name of Registrant as Specified in Charter)
Wisconsin 001-13615 22-2423556
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(State or other Jurisdiction of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
Six Concourse Parkway, Suite 3300, Atlanta, Georgia 30328
(Address of principal executive offices, including zip code)
(770) 829-6200
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(Registrant's telephone number, including area code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the Registrant under any of the
following provisions:
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
(a) The following information, including Exhibit 99.1 attached hereto, is being
furnished pursuant to this Item 2.02 and shall not be deemed "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933, as amended, except as shall be expressly set forth by specific
reference in such filing.
On August 3, 2006, Spectrum Brands, Inc. issued a press release discussing,
among other things, its estimated financial results for its third fiscal quarter
of 2006 ended June 30, 2006. A copy of the press release is furnished as Exhibit
99.1 to this report.
Item 8.01. OTHER EVENTS.
The press release dated August 3, 2006, attached hereto as Exhibit
99.1 also reports that Spectrum Brands was informed by the U.S. Attorney's
Office for the Northern District of Georgia on July 27, 2006 that the U.S.
Attorney's Office has terminated its investigation initiated November 9, 2005
related to the company's financial results for the third and fourth quarters of
fiscal year 2005 and the impact of these results on anticipated fiscal year 2006
earnings, as well as to the sale of company shares by senior management in
advance of negative financial disclosures in 2005. Spectrum Brands continues to
cooperate with the Atlanta District Office of the Securities and Exchange
Commission's investigation into such matters.
Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) 99.1 Press Release dated August 3, 2006 issued by Spectrum Brands, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: August 3, 2006 SPECTRUM BRANDS, INC.
By: /s/ Randall J. Steward
-------------------------------------
Name: Randall J. Steward
Title: Executive Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit Description
- ------- -----------
99.1 Press Release dated August 3, 2006
issued by Spectrum Brands, Inc.
Exhibit 99.1
Spectrum Brands, Inc. Announces Third Quarter Financial Results
ATLANTA--(BUSINESS WIRE)--Aug. 3, 2006--Spectrum Brands, Inc.
(NYSE:SPC), a global consumer products company with a diverse
portfolio of world-class brands, announced financial results of
diluted earnings per share of five cents for its fiscal third quarter
ended July 2, 2006. Excluding certain adjustments which management
believes are not indicative of the company's on-going normalized
operations, diluted earnings per share for its fiscal third quarter
would have been $0.22. (See Table 3, "Reconciliation of GAAP to
Adjusted Financial Data," for further detail).
Last year, the company reported diluted earnings per share of
$0.46 for the quarter ended July 3, 2005. The company estimates that
the prior year's third quarter diluted earnings per share, excluding
certain adjustments which management believes are not indicative of
the company's ongoing normalized operations, were $0.70.
"Spectrum Brands continues to face challenges in our European
battery business, which was the leading contributor to our
disappointing third quarter results," said David A. Jones, chairman
and chief executive officer. "We also generated lower-than-expected
sales this quarter from Remington men's shaving in North America at
Father's Day. However, there were a number of bright spots in our
third quarter results, including a strong performance from Remington
branded products in Europe and a modest but encouraging sequential
improvement in our North American battery business.
"The Spectrum Brands management team is fully focused on improving
our financial performance. We are moving quickly to stabilize our
European battery business and to execute on our growth strategy
throughout the rest of our product portfolio. We continue to make good
progress on our cost reduction initiatives. In addition, we are
examining ways to reduce debt and leverage levels and strengthen our
balance sheet through potential divestiture of selected assets with
the goal of becoming a leaner, more flexible organization
well-positioned to create long-term shareholder value."
Financial results for the quarter ended July 2, 2006 include
results from Tetra Holding GmbH, acquired on April 29, 2005, and
Jungle Labs, acquired on September 1, 2005. Financial results for
periods prior to the acquisition dates exclude Tetra and Jungle. On
January 25, 2006 Spectrum Brands divested its Canadian fertilizer
technology and professional products businesses. As a result of this
sale, the company has reported the third quarter and year-to-date
results of these businesses as discontinued operations in the
condensed consolidated statements of operations for both 2006 and
2005.
Third Quarter Results
Spectrum Brands' third quarter net sales were $698.3 million, as
compared to $707.8 million for the same period last year. The revenue
contribution from acquisitions was $22.8 million. Foreign exchange
translation contributed a net positive $5.0 million.
Gross profit and gross margin for the quarter was $265.5 million
and 38.0 percent, respectively, versus $270.2 million and 38.2 percent
for the same period last year. Cost of goods sold during the quarter
included $2.7 million in restructuring and related charges. Prior year
results included a $7.3 million inventory valuation charge related to
the United and Tetra acquisitions and $7.8 million in restructuring
and related charges associated with the closure of a French
manufacturing facility. Excluding these charges, gross profit margin
for the third quarter was 38.4 percent versus 40.3 percent for the
same period last year. The decline in gross margin percentage resulted
primarily from lower sales in the global battery business and
increased raw material costs.
Operating income was $49.0 million, or 7.0 percent of sales,
versus fiscal 2005's third quarter operating income of $69.0 million,
or 9.7 percent of sales. Operating expenses in 2006 included net
restructuring and related charges and other costs of $9.8 million
primarily attributable to the United integration and rationalization
of the company's European sales and marketing organization. In 2005
operating expenses included $7.3 million in net restructuring and
related charges and other costs primarily related to the United
acquisition. Adjusted operating income for the third quarter was $61.5
million, or 8.8 percent of sales, compared to $91.4 million, or 12.9
percent of sales last year. Distribution costs were $9.7 million
higher than compared with a year ago, in large part due to significant
increases in fuel costs. Increased investment in advertising spending
added another $2.2 million to operating expenses.
Third quarter interest expense was $45.7 million versus $38.6
million last year due to increased debt levels from the Tetra
acquisition and higher interest rates. Total debt at July 2, 2006 was
$2.283 billion.
Third Quarter Segment Results
North American net sales were $394.2 million compared with $412.8
million reported last year. Battery and lighting sales declined 11
percent versus last year, as the company has not yet fully recovered
from market share and distribution losses that occurred in 2005 and
earlier in fiscal 2006. Remington branded product sales declined by 27
percent, largely the result of a weak category performance in Father's
Day men's shaver sales. In the company's lawn and garden business,
consumer purchases of Spectrum Brands products at retail grew five
percent during the third quarter; however, reported lawn and garden
sales grew at a three percent rate primarily as a result of retail
customers' inventory reduction programs. North American segment
profits were $61.7 million versus $72.3 million reported last year, as
a result of the year over year sales decline.
European/ROW net sales were $117.1 million versus $137.3 million
in the prior year. Sales of Remington branded products grew by 19
percent as a result of strong penetration gains in continental Europe.
However, this improvement was more than offset by an unfavorable
product mix shift from branded to private label battery sales and from
higher margin specialty retail distribution channels to lower margin
food and mass channels, which contributed to a 23 percent sales
decline from batteries. Segment profitability for the quarter was $4.3
million compared with $18.0 million last year, primarily a function of
lower battery sales volume and higher raw material costs.
In Latin America, net sales increased to $54.6 million as compared
to $49.6 million in the third quarter last year. Sales growth was
driven by strong performance from Remington branded products in the
region combined with modest growth in battery and lighting product
sales. Favorable foreign exchange translation contributed $1.5 million
to net sales. Latin American segment profitability of $4.2 million was
flat versus last year as rising commodity prices and higher selling
and marketing expenses offset higher revenues.
In 2006, Spectrum Brands created the Global Pet segment, a new
business segment for reporting purposes, comprising United Pet Group,
Tetra and Jungle Labs, all of which were acquired during 2005. The
Global Pet segment contributed net sales of $132.4 million and segment
profits of $20.6 million during the third quarter. This compares to
segment revenues of $108.1 million and segment profits of $11.6
million in the third fiscal quarter of last year. The third quarter
revenue contribution from acquisitions was $22.8 million.
Corporate expenses were $27.6 million, or 4.0 percent of net
sales, as compared to $22.1 million, or 3.1 percent of net sales, in
the prior year period. Expansion of the global operations support
infrastructure and increased professional fees accounted for the
majority of the increase.
Termination of U.S. Attorney's Office Investigation
In unrelated news, Spectrum Brands was informed by the U.S.
Attorney's Office for the Northern District of Georgia on July 27,
2006 that the U.S. Attorney's Office has terminated its investigation
initiated November 9, 2005 related to the company's financial results
for the third and fourth quarters of fiscal year 2005 and the impact
of these results on anticipated fiscal year 2006 earnings, as well as
to the sale of company shares by senior management in advance of
negative financial disclosures in 2005. Spectrum Brands continues to
cooperate with the Atlanta District Office of the Securities and
Exchange Commission's investigation into such matters.
Webcast Information
Spectrum Brands management will discuss third quarter financial
results in a live webcast on Thursday, August 3, at 8:30 a.m. EDT.
Interested investors and others can access this webcast through the
company's website, www.spectrumbrands.com.
Non-GAAP Measurements
Throughout this release, references are made to adjusted gross
profit, adjusted operating income, adjusted net income and adjusted
diluted EPS. See attached Table 3, "Reconciliation of GAAP to Adjusted
Financial Data," for a complete reconciliation of gross profit,
operating income, net income and diluted EPS on a GAAP basis to
adjusted gross profit, adjusted operating income, adjusted net income
and adjusted diluted EPS.
Spectrum Brands management and some investors use adjusted results
of operations as one means of analyzing the company's current and
future financial performance and identifying trends in its financial
condition and results of operations. Spectrum Brands provides adjusted
information to investors to assist in meaningful comparisons of past,
present and future operating results and to assist in highlighting the
results of on-going core operations. While management believes these
adjusted results provide useful supplemental information, adjusted
results are not intended to replace the company's GAAP financial
results and should be read in conjunction with those GAAP results.
About Spectrum Brands, Inc.
Spectrum Brands is a global consumer products company and a
leading supplier of batteries, lawn and garden care products,
specialty pet supplies, shaving and grooming products, household
insecticides, personal care products and portable lighting. Spectrum
Brands' products are sold by the world's top 25 retailers and are
available in more than one million stores in more than 120 countries
around the world. Headquartered in Atlanta, Georgia, Spectrum Brands
has approximately 10,000 employees worldwide. The company's stock
trades on the New York Stock Exchange under the symbol SPC.
Certain matters discussed in this news release, with the exception
of historical matters, may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are subject to a number of risks and uncertainties that
could cause results to differ materially from those anticipated as of
the date of this release. Actual results may differ materially from
these statements as a result of (1) changes in external competitive
market factors, such as introduction of new product features or
technological developments, development of new competitors or
competitive brands or competitive promotional activity or spending,
(2) changes in consumer demand for the various types of products
Spectrum Brands offers, (3) changes in the general economic conditions
where Spectrum Brands does business, such as stock market prices,
interest rates, currency exchange rates, inflation, consumer spending
and raw material costs, (4) the company's ability to successfully
implement manufacturing, distribution and other cost efficiencies, and
various other factors, including those discussed herein and those set
forth in Spectrum Brands' securities filings, including the most
recently filed Annual Report on Form 10-K and Form 10-Q.
Attached
Table 1 - Condensed Consolidated Statements of Operations
Table 2 - Supplemental Financial Data
Table 3 - Reconciliation of GAAP to Adjusted Financial Data
Table 1
SPECTRUM BRANDS, INC.
Condensed Consolidated Statements of Operations
For the three and nine months ended July 2, 2006 and July 3, 2005
(Unaudited)
(In millions, except per share amounts)
THREE MONTHS NINE MONTHS
------------------------ ---------------------------
F2006 F2005(a) INC(DEC) F2006 F2005(a) INC(DEC)
------ -------- % ------ -------- %
Net sales $698.3 $707.8 -1.3%$1,943.3 $1,719.5 13.0%
Cost of goods sold 430.1 429.8 1,196.5 1,057.7
Restructuring and
related charges 2.7 7.8 4.4 7.8
------ ------ -------- --------
Gross profit 265.5 270.2 -1.7% 742.4 654.0 13.5%
Selling 154.3 142.9 419.7 349.4
General and
administrative 43.2 43.0 137.4 112.7
Research and
development 7.5 8.0 22.5 21.2
Restructuring and
related charges 11.5 7.3 22.8 7.5
------ ------ -------- --------
Total operating
expenses 216.5 201.2 602.4 490.8
Operating
income 49.0 69.0 -29.0% 140.0 163.2 -14.2%
Interest expense 45.7 38.6 130.0 94.5
Other income, net (0.1) (1.1) (6.0) (1.3)
------ ------ -------- --------
Income from
continuing
operations
before income
taxes 3.4 31.5 16.0 70.0
Income tax expense 0.9 10.7 5.3 24.9
------ ------ -------- --------
Income from
continuing
operations 2.5 20.8 10.7 45.1
Income (loss) from
discontinued
operations, net
of tax - 2.9 (5.3)(a) 4.6
------ ------ -------- --------
Net income $ 2.5 $ 23.7 $ 5.4 $ 49.7
====== ====== ======== ========
Average shares
outstanding (b) 49.5 48.9 49.5 42.0
Income from
continuing
operations $ 0.05 $ 0.42 $ 0.22 $ 1.07
Discontinued
operations - 0.06 (0.11) 0.11
------ ------ -------- --------
Basic earnings per
share $ 0.05 $ 0.48 $ 0.11 $ 1.18
====== ====== ======== ========
Average shares and
common stock
equivalents
outstanding (b) 51.6 51.1 51.0 43.9
Income from
continuing
operations $ 0.05 $ 0.41 $ 0.21 $ 1.03
Discontinued
operations - 0.05 (0.10) 0.10
------ ------ -------- --------
Diluted earnings
per share $ 0.05 $ 0.46 $ 0.11 $ 1.13
====== ====== ======== ========
(a) The fertilizer technology and Canadian professional fertilizer
businesses of Nu-Gro, disposed of in January 2006, are excluded
from continuing operations for all periods presented. Certain
amounts have been reclassified in the three and nine months ended
July 3, 2005 to conform to the current year classification and
present these businesses as discontinued operations.
(b) Per share figures calculated prior to rounding in millions.
Table 2
SPECTRUM BRANDS, INC.
Supplemental Financial Data
For the three and nine months ended July 2, 2006 and July 3, 2005
(Unaudited)
($ In millions)
Supplemental Financial Data F2006 F2005
- --------------------------- --------- ---------
Cash $ 13.1 $ 27.0
Trade receivables, net $ 374.3 $ 449.5
Days Sales Outstanding (a) 50 54
Inventory, net $ 461.0 $ 470.3
Inventory Turnover (b) 3.6 3.7
Total Debt $2,282.9 $2,336.7
THREE MONTHS NINE MONTHS
------------------ -----------------
Supplemental Cash Flow Data F2006 F2005 F2006 F2005
- --------------------------- -------- --------- ------- ---------
Depreciation and amortization,
excluding amortization of debt
issuance costs $ 22.5 $ 21.0 $ 66.4 $ 48.8
Capital expenditures $ 20.9 $ 20.6 $ 51.2 $ 40.8
THREE MONTHS NINE MONTHS
------------------ -----------------
Supplemental Segment Sales &
Profitability F2006 F2005 F2006 F2005
- ---------------------------- --------- -------- -------- --------
Net Sales
- ---------
North America $ 394.2 $ 412.8 $ 954.6 $ 909.2
Europe/ROW 117.1 137.3 416.9 503.8
Latin America 54.6 49.6 168.9 151.9
Global Pet 132.4 108.1 402.9 154.6
-------- -------- -------- --------
Total net sales $ 698.3 $ 707.8 $1,943.3 $1,719.5
======== ======== ======== ========
Segment Profit
- --------------
North America $ 61.7 $ 72.3 $ 125.9 $ 147.2
Europe/ROW 4.3 18.0 41.5 73.3
Latin America 4.2 4.3 14.2 13.6
Global Pet 20.6 11.6 62.4 11.6
-------- -------- -------- --------
Total segment profit 90.8 106.2 244.0 245.7
Corporate 27.6 22.1 76.8 67.2
Restructuring and related
charges 14.2 15.1 27.2 15.3
Interest expense 45.7 38.6 130.0 94.5
Other income, net (0.1) (1.1) (6.0) (1.3)
-------- -------- -------- --------
Income from continuing
operations before income
taxes $ 3.4 $ 31.5 $ 16.0 $ 70.0
======== ======== ======== ========
(a) Reflects actual days sales outstanding at end of period.
(b) Reflects cost of sales (excluding restructuring and related
charges) during the quarter divided by average inventory for the
quarter, multiplied by four.
Table 3
SPECTRUM BRANDS, INC.
Reconciliation of GAAP to Adjusted Financial Data
For the three months ended July 2, 2006 and July 3, 2005
(Unaudited)
(In millions, except per share amounts)
THREE MONTHS
---------------------------------------------------------
F2006 F2005
----------------------------- ---------------------------
As Adjust- As Adjust-
Reported ments- Adjusted Reported ments Adjusted
Net sales $ 698.3 $ - $ 698.3 $ 707.8 $ - $ 707.8
Gross profit 265.5 2.7 (a) 268.2 270.2 15.1 (b) 285.3
Gross profit
% of sales 38.0% 38.4% 38.2% 40.3%
Operating
expenses 216.5 9.8 (c) 206.7 201.2 7.3 (d) 193.9
Operating
income 49.0 12.5 61.5 69.0 22.4 91.4
Operating
income % of
sales 7.0% 8.8% 9.7% 12.9%
Income from
continuing
operations
before
income taxes 3.4 12.1 (e) 15.5 31.5 22.4 53.9
Income from
continuing
operations 2.5 9.0 11.5 20.8 15.0 (f) 35.8
Income from
discontinued
operations,
net of tax - - - 2.9 (2.9) -
Net
income 2.5 9.0 11.5 23.7 12.1 35.8
Basic
earnings per
share (g) $ 0.05 $ 0.18 $ 0.23 $ 0.48 $ 0.25 $ 0.73
======= ======= ======= ======= ======= =======
Diluted
earnings per
share (g) $ 0.05 $ 0.17 $ 0.22 $ 0.46 $ 0.24 $ 0.70
======= ======= ======= ======= ======= =======
(a) For the three months ended July 2, 2006, reflects restructuring
and related charges incurred during the period.
(b) For the three months ended July 3, 2005, reflects inventory
valuation adjustments of $5.7 million related to the fair value
write-up of Tetra inventory and $1.6 million related to the fair
value write-up of United inventory in accordance with the
requirements of SFAS 141, "Business Combinations." Also includes
$7.8 million of restructuring and related charges incurred during
the period associated with the closure of our manufacturing
facility in Breitenbach, France.
(c) For the three months ended July 2, 2006, includes $9.9 million and
$1.6 million of restructuring and related charges incurred during
the period in connection with (i) the United integration and (ii)
a series of actions in Europe to reduce operating costs and
rationalize operating structure, respectively. In addition,
general and administrative expenses include a $1.7 million benefit
related to expiring penalties, associated with the Company's
provision for presumed credits applied to the Brazilian excise tax
on manufactured products, which expired in the current period.
(d) For the three months ended July 3, 2005, reflects restructuring
and related charges incurred during the period.
(e) For the three months ended July 2, 2006, interest expense includes
a $0.4 million net benefit related to interest charges associated
with the Company's provision for presumed credits applied to the
Brazilian excise tax on manufactured products.
(f) During the three months ended July 3, 2005, the Company, based on
its current estimate of profits for fiscal 2005, reduced its full
year effective tax rate from 37 percent to approximately 36
percent.
(g) Per share figures calculated prior to rounding in millions.
Table 3 (continued)
SPECTRUM BRANDS, INC.
Reconciliation of GAAP to Adjusted Financial Data
For the nine months ended July 2, 2006 and July 3, 2005
(Unaudited)
(In millions, except per share amounts)
NINE MONTHS
---------------------------------------------------------
F2006 F2005
----------------------------- ---------------------------
As Adjust- As Adjust-
Reported ments Adjusted Reported ments Adjusted
Net sales $1,943.3 $ - $1,943.3 $1,719.5 $ - $1,719.5
Gross profit 742.4 4.6 (a) 747.0 654.0 42.8 (b) 696.8
Gross profit
% of sales 38.2% 38.4% 38.0% 40.5%
Operating
expenses 602.4 20.8 (c) 581.6 490.8 7.0 (d) 483.8
Operating
income 140.0 25.5 165.5 163.2 49.8 213.0
Operating
income % of
sales 7.2% 8.5% 9.5% 12.4%
Income from
continuing
operations
before
income taxes 16.0 18.9 (e) 34.9 70.0 61.9 (f) 131.9
Income from
continuing
operations 10.7 12.6 23.3 45.1 39.9 (g) 85.0
(Loss) income
from
discontinued
operations,
net of tax (5.3) 5.3 - 4.6 (4.6) -
Net
income 5.4 17.9 23.3 49.7 35.3 85.0
Basic
earnings per
share (h) $ 0.11 $ 0.36 $ 0.47 $ 1.18 $ 0.84 $ 2.02
======= ======= ======= ======= ======= =======
Diluted
earnings per
share (h) $ 0.11 $ 0.35 $ 0.46 $ 1.13 $ 0.80 $ 1.93
======= ======= ======= ======= ======= =======
(a) For the nine months ended July 2, 2006, includes $4.4 million of
restructuring and related charges and an inventory valuation
adjustment of $0.2 million related to the fair value write-up of
Jungle Labs inventory in accordance with the requirements of
Statement of Financial Accounting Standards ("SFAS") 141,
"Business Combinations."
(b) For the nine months ended July 3, 2005, reflects inventory
valuation adjustments of $5.7 million related to the fair value
write-up of Tetra inventory and $29.3 million related to the fair
value write-up of United inventory in accordance with the
requirements of SFAS 141, "Business Combinations." Also includes
$7.8 million of restructuring and related charges incurred during
the period associated with the closure of our manufacturing
facility in Breitenbach, France.
(c) For the nine months ended July 2, 2006, includes $17.6 million and
$5.2 million of restructuring and related charges incurred during
the period in connection with (i) the United integration and (ii)
a series of actions in Europe to reduce operating costs and
rationalize operating structure, respectively. In addition,
general and administrative expenses include a $2.0 million benefit
related to expiring penalties, associated with the Company's
provision for presumed credits applied to the Brazilian excise tax
on manufactured products, which expired in the current period.
(d) For the nine months ended July 3, 2005, operating expenses include
a $1.6 million gain on sale of land and building, offset by a $1.1
million charge related to the disposal of our Madison, WI
manufacturing facility, closed in fiscal 2003. Also includes $7.5
million of restructuring and related charges incurred during the
period.
(e) For the nine months ended July 2, 2006, other income, net includes
a $7.9 million gain on sale of the Company's Bridgeport, WI and
Madison, WI manufacturing facilities. In addition, interest
expense includes $1.3 million related to interest charges
associated with the Company's provision for presumed credits
applied to the Brazilian excise tax on manufactured products.
(f) For the nine months ended July 3, 2005, interest expense includes
$12.0 million related to the write-off of debt issuance costs in
the second quarter of 2005 associated with debt refinanced in
connection with the United acquisition.
(g) For the nine months ended July 3, 2005, the Company, based on its
current estimate of profits for fiscal 2005, reduced its full year
effective tax rate from 37 percent to approximately 36 percent.
(h) Per share figures calculated prior to rounding in millions.
CONTACT: Spectrum Brands
Investor Relations
Nancy O'Donnell, 770-829-6208
or
Media Relations
Ketchum for Spectrum Brands
David Doolittle, 404-879-9266