Tupperware Brands Corp.'s (TUP) first-quarter net income dropped
20.2% as the company was hurt by cross-sector, broad-based declines
in sales and profit.
The personal-products maker reported net income of $25.6
million, or 41 cents a share, up from $32.1 million, or 51 cents a
share, a year earlier.
The latest results included certain items impacting
comparability. Excluding items, earnings fell to 45 cents a share
from 56 cents.
Revenue fell 15% to $462.8 million, but rose 1% in local
currency.
In February, Tupperware predicted earnings, excluding items, of
34 cents to 39 cents a share on a sales decline of 12% to 14%.
Analysts' latest estimates were for per-share earnings of 34 cents
on revenue of $459.5 million, down 15%, according to a poll by
Thomson Reuters.
Gross margin rose to 65.4% from 64.2%.
The company, best known for its namesake line of plastic storage
containers, reported declines in sales and profit in all segments
except for Asia Pacific. Sales fell 13% in the North America
Tupperware unit as profit tumbled 33%. In Europe, which provides
about a third of the company's revenue, sales and profit fell 18%
and 19%, respectively. Asia-Pacific sales grew 2% and profit
climbed 1%.
Looking ahead, Tupperware expects second-quarter per-share
earnings of 62 cents to 67 cents. Analysts estimated earnings of 50
cents a share on revenue of $459 million.
The company now expects 2009 earnings of $2.16 to $2.26 and a
sales decline of 8% to 11%. In February, it forecast earnings of
$1.98 to $2.08 on a sales decline of 9% to 11%. Analysts were
looking for earnings of $1.96 a share on revenue of $1.89 billion,
down 13%.
"As we go into the second quarter and the rest of 2009 we have
levers within our control to continue to help drive both our top
line sales and our bottom line," said Chief Executive Rick Goings.
"With a sales force size advantage of 7%, which was even with the
end of 2008, we continue to work on the productivity of our sales
force."
Tupperware's shares were flat from closing at $21.36 in
after-hours trading. The stock price has fallen about 38% in the
past six months but is up about 25% this month.
-By Adam O. Manzor and Kathy Shwiff, Dow Jones Newswires; 201-938-5975; Kathy.Shwiff@dowjones.com