Hain Celestial 1Q profit climbs on lower expenses

Hain Celestial 1st-quarter profit rises on lower expenses, strong US, European results

• On 6:58 am EST, Friday November 6, 2009

MELVILLE, N.Y. (AP) -- Hain Celestial Group Inc., maker of Celestial Seasonings tea, said its first-quarter profit rose almost 16 percent as lower expenses and strong results from its U.S. and European operations offset lower overall sales.

The company said late Thursday that its earnings rose to $8.1 million, or 20 cents per share, in the July-September period compared with $7 million, or 17 cents per share, a year ago.

Quarterly results benefited from lower selling, general and administrative expenses of $42.6 million compared with $53.3 million last year.

Analysts surveyed by Thomson Reuters, whose estimates typically exclude one-time items, expected a profit of 23 cents per share.

Sales dropped 20 percent to $230.5 million from $286.8 million, partly on higher promotional costs. Results were also hurt by destocking from a distributor, reduced personal care product sales to chain drug stores, foreign currency changes and the phase out of fresh sandwiches to a U.K. retail customer.

The results missed Wall Street's estimate of $249.4 million.

Hain Celestial maintained its fiscal 2010 profit outlook of $1.19 to $1.28 per share on sales of $1 billion to $1.02 billion.

Analysts predict earnings of $1.23 per share on sales of $1.01 billion.