ST. LOUIS, Mo. -- Energizer Holdings here experienced a sharp drop off in second quarter earnings as a result of Y2K consumer stockpiling, according the company's latest financial statement.
forma earnings from continuing operations, excluding unusual items, for the quarter ending March 31, 2000 were $4.1 million, or 4 cents per share, compared to $15.5 million, or 15 cents per share in last year's second quarter. Sales were 11% lower than last year's second quarter, reflecting heavy trade inventories remaining with retailers and consumer stockpiling in preparation for the Y2K date change, as well as unusually high promotional activity in the U.S. in last year's second quarter.
North American segment profit decreased 47%, primarily as a result of a 17% sales decline. Customer orders were off sharply in the quarter as remaining customer inventories from Y2K stocking were worked down in the historically low volume second quarter, the company reported.
"While sales to the trade in the second quarter were disappointing and reflect the Y2K overhang, we are encouraged by consumer takeaway and market share gains, particularly in the U.S.," said Patrick Mulcahy, Energizer's chief executive officer. He noted that according to ACNielsen, Energizer brand sales increased 9% and gained 1.6 share points to 32.4% of the alkaline battery category for the 13 weeks ended April 1, 2000. The company expects to regain its momentum with the launch of its new super premium Energizer e2 battery, which begins shipping on June 19, Mulcahy said.
BIC Uses Extreme Sports Theme to Target Teens
MILFORD, Conn. -- BIC Consumer Products, a division of BIC USA Inc., will launch a give-away promotion using sub-mainstream sports to capture sales during back-to-school season.
Created for BIC by BrandGames, New York, BIC Extreme Sports will feature a CD-ROM game giveaway with games for rock climbing, skateboarding and jet skiing enthusiasts. The BIC Extreme Sports promotion will be found on all ten-packs of Round Stic pens, Mechanical Pencils, and Cristal Pens during the back-to-school season (August through September). To receive the free game, consumers must buy four BIC writing instrument and correction products and send UPC's and $2.99 for shipping and handling, or collect 20 UPC's from any BIC stationery items and send no money.