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Spectrum Brands 3rd-qtr net income falls 39 pct

MADISON, Wis. (AP) -- Spectrum Brands Holdings Inc., which makes a wide range of consumer products including the George Foreman grill, Rayovac batteries and Kwikset locks, said Tuesday that its fiscal third quarter net income fell nearly 39 percent, hurt by costs related to an acquisition, restructuring costs and a tax expense.

Still, the company paid down debt, remained optimistic on sales trends for the fourth quarter and full year, and released plans for a new share repurchase program. The combination boosted shares reached a new high in morning trading.

Net income for the three months ended June 30 fell to $36.1 million, or 69 cents per share. That compares with $58.7 million, or $1.13 per share, last year.

Adjusted for one-time costs related to an acquisition, a tax expense and higher restructuring charges, net income totaled 90 cents per share.

Analysts, on average, expected net income of $1.10 per share, according to FactSet.

Revenue rose 32 percent to $1.09 billion from $824.8 million last year. Analysts expected revenue of $1.11 billion. Results were boosted by its December 2012 acquisition of the hardware & home improvement group of Stanley Black & Decker.

For its full fiscal year, the company expects revenue of $4.06 billion to $4.1 billion, higher than the prior-year's revenue of $3.25 billion. Analysts expect $4.1 billion, on average, with estimates ranging from $4.07 billion to $4.13 billion.

Spectrum also expects fourth-quarter revenue to rise from the prior quarter's revenue of $832.6 million. Analysts expect revenue of $1.13 billion.

CEO David Lumley said fourth-quarter results should be helped by increased store traffic and optimism for value-branded sales in the back-to-school season. He also pointed to new products launching, key distribution gains taking hold, select new retailer business, continuing geographic expansion and more cost reductions.

Separately, the company said it plans to refinance its $950 million of senior notes, to help lower capital and reduce cash interest expense. Spectrum's board also approved a $200 million stock repurchase program, good for two years.

Spectrum is working to reduce debt and has completed $100 million in debt reduction to date. Its goal is to pay off at least $200 million in debt in fiscal 2013, which ends Sept. 30.

Shares rose $2.74, or 4.6 percent, to $61.66 during morning trading. Earlier, the stock spiked to $63.51, its highest point since it began trading in 2010.