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Spectrum Brands 4Q adj. profit meets expectations

The Associated Press

NEWS: Spectrum Brands, whose products include the George Foreman grill and Rayovac batteries, reported a loss for its fiscal fourth-quarter due to costs and expenses related to debt extinguishment.

But its adjusted profit matched analysts' expectations, and revenue beat Wall Street's forecast.

Shares rose more than 8 percent in morning trading on Thursday and briefly hit an all-time high.

DETAILS: The home and garden segment reported its sales rose 18 percent to $101.4 million, while the hardware and home improvement division posted a 14 percent increase in sales.

Sales for the global batteries and appliances unit fell to $577.3 million from $580 million. Global pet supplies division sales declined to $165.2 million from $166.5 million.

The consumer products company said it plans to lower debt by at least $250 million in fiscal 2014.

NUMBERS: Spectrum Brands lost $36.7 million, or 70 cents per share, for the three months ended Sept. 30. That compares with net income of $5.5 million, or 10 cents per share, a year earlier.

The company said Thursday that its quarterly loss was entirely due to costs and expenses tied to the extinguishment of $950 million senior secured notes. Excluding those costs and expenses and other items, earnings were 88 cents per share.

This met Wall Street's view.

Revenue climbed 37 percent to $1.14 billion from $832.6 million, mostly because of the acquisition of Stanley Black & Decker's hardware and home improvement group. Analysts polled by FactSet were looking for revenue of $1.13 billion.

For the year, Spectrum Brands Holdings Inc. lost $55.2 million, or $1.06 per share. In the prior year it earned $48.6 million, or 91 cents per share. Annual revenue increased to $4.09 billion from $3.25 billion.

STOCK: Shares of Spectrum Brands gained $5.31, or 8.3 percent, to $69.15 in morning trading after rising as high as $69.82 earlier in the session. FactSet said that was an all-time high.