Tupperware 4th-qtr profit slides on charges
ORLANDO, Fla. (AP) — Tupperware Brands Corp. said Tuesday its fourth quarter net income fell 14 percent, but growth in emerging markets in South America and Asia helped lift adjusted results above Wall Street expectations.
The direct seller of plastic storage containers and personal care products has sought to improve results by offering new products and adjusting prices in some regions. It has also reduced staff in certain areas and relocated operations in several countries.
For the three months ended Dec. 29, net income rose to $74.5 million, or $1.34 per share. Adjusted for one-time items, including costs related to reducing headcount and moving, and the early paydown of debt, the company said it earned $1.71 per share.
That compares with net income of $86.9 million, or $1.50 per share, in the 2011 fourth quarter.
Analysts, on average, expected net income of $1.68 per share, according to FactSet.
Revenue rose 5 percent to $711 million, from $676.1 million last year. Analysts expected $706.5 million, on average.
Revenue rose 16 percent in South America and 11 percent in Asia Pacific. Results in established markets were weaker, with sales down 2 percent in Europe. In North American, beauty product revenue rose fell 1 percent, while Tupperware revenue rose 8 percent.
For the year, net income fell 12 percent to $193 million, or $3.42 per share, from $218.3 million, or $3.55 per share in 2011.
Revenue was basically flat at $2.58 billion.
For the three months ending March 30, Tupperware expects earnings, excluding items, of $1.09 to $1.14 per share on revenue growth of 2 percent to 4 percent, implying revenue of $652.3 million to $665.1 million. Analysts, on average, expect $1.14 per share on revenue of $663.4 million.
For the year ending Dec. 28, the company expects adjusted net income of $5.62 to $5.77 per share, on revenue growth of 5 percent to 7 percent, implying revenue of $2.71 billion to $2.76 billion. Analysts were forecasting profit of $5.56 per share on revenue of $2.73 billion.
Tupperware Brands shares closed Monday at $70.33, up nearly10 percent since the start of the year.