ST. LOUIS (AP) -- Energizer Holdings Inc. said Wednesday that its fiscal third-quarter net income fell 20 percent, weighed down by restructuring costs, but adjusted results beat analysts' expectations.
Energizer, which makes a range of products including batteries, Banana Boat sunscreen and Schick razors, and other disposable battery makers face waning demand with more reusable, cost-effective products on the market. The company is in the midst of a restructuring plan that includes job cuts and lowering overhead spending as part of its efforts to reduce costs and improve earnings. In addition Energizer said Wednesday that it is buying Johnson & Johnson's feminine care brands — including o.b., Stayfree and Carefree — to expand in that category.
Net income for the three months ended June 30 totaled $87.2 million, or $1.38 per share. That compares with $70.2 million, or $1.06 per share last year. Excluding restructuring and other costs, and an adjustment for prior years' tax accrual, net income totaled $1.57 per share. Analysts expected $1.31 per share, according to FactSet.
Revenue fell 1 percent to $1.11 billion. Analysts expected $1.31 billion.
CEO Ward Klein said he was "disappointed" with the revenue results, weaker because of markdowns and discounts in some personal care categories such as razors and sunscreen.
"Even though we expect weak category dynamics to continue into our fourth quarter, the incremental savings from the restructuring program will keep us on track," Klein said.
The company still expects yearly adjusted income of $6.75 to $7 per share. Analysts expect $6.90 per share.
Energizer shares lost $3.95, or 3.8 percent, to $100.99 in midday trading.