ST. LOUIS (AP) — Energizer Holdings Inc., which makes batteries, flashlights, and other consumer products, said Wednesday that its fiscal third-quarter net income rose 6.5 percent, as profitability improvements offset a drop in sales.
But both the company's profit and revenue both fell short of Wall Street predictions, and Energizer shares tumbled 10 percent in premarket trading.
For the quarter ended June 30, the St. Louis-based company earned $70.2 million, or $1.06 per share, up from $65.9 million, or 94 cents per share, in the same quarter last year. Excluding restructuring, integration and other charges, the company said it posted an adjusted profit of $1.18 per share for the recent quarter.
Revenue fell 8.9 percent to $1.12 billion from $1.23 billion.
Analysts, on average, expected a profit of $1.31 per share on $1.23 billion in revenue, according to a FactSet poll.
Energizer said it sold fewer batteries, as a drop in shelf space and display activities at a key customer hurt its market share. Meanwhile, increasing competition reduced sales at the company's personal care business. And sales at both divisions were hurt by drops in value of foreign currencies against the U.S. dollar.
Energizer, like other companies that do significant business outside the U.S., can suffer when the values of foreign currencies fall because income earned in those currencies shrinks when it is translated back into a stronger U.S. dollar.
The company backed its previous full-year profit prediction of $6 to $6.20 per share, but acknowledged that weak battery demand, increased competition and tough economic conditions are making it harder for the company to grow.
Analysts expect a full-year profit of $6.07 per share.
Energizer shares fell $7.77, or 10 percent, to $70 in premarket trading.