Absent big charge, Jarden 4Q profit jumps
RYE, N.Y. (AP) — Jarden, the company behind Crock-Pot, Mr. Coffee, Coleman camping gear and other consumer brands, said Thursday that its fourth-quarter net income more than doubled absent a big charge from the year before.
Adjusted profit topped analyst estimates, and revenue rose 5 percent.
The Rye, N.Y., company also announced a 3-for-2 stock split, its fourth split since 2002.
For the period ended Dec. 31, Jarden earned $48.7 million, or 64 cents per share. In the last three months of 2011, profit came to $21.1 million, or 24 cents per share. That period contained a $52.5 million charge to write down the value of certain assets.
Removing reorganization costs and other items, earnings came to $1.28 per share from 96 cents per share the year before. Revenue rose to $1.82 billion from $1.74 billion as sales increased in Jarden's four business divisions.
Analysts polled by FactSet expected earnings of $1.26 per share on revenue of $1.81 billion.
For all of 2012, Jarden earned $243.9 million, or $3.10 per share, up from $204.7 million, or $2.31 per share, in 2011. Revenue rose slightly to $6.7 billion from $6.68 billion.
Because of Jarden Corp.'s planned 3-for-2 stock split, shareholders as of Feb. 25 will receive one more Jarden share for every two shares they already own. The new shares are expected to be distributed on March 18.
A stock split results in more stock outstanding — the company will have about 117.8 million shares outstanding after the move — and a lower stock price. The value of an existing investor's holding doesn't change, but lowering the price of an individual share makes a stock more affordable. That can appeal to small investors.
Jarden's shares have risen 75 percent in the past 12 months. The stock fell $1.09, or 1.8 percent, to $58.61 in morning trading Thursday.