Earnings
Scotts Miracle-Gro Raises 2009 Profit Outlook
The Associated Press
06/17/09 - 08:47 AM EDT
MARYSVILLE, Ohio (AP) The Scotts Miracle-Gro Co. raised its fiscal 2009 profit estimates Wednesday, saying demand for gardening products has remained strong in the U.S.
The Marysville, Ohio, company now expects a profit of $2.35 to $2.45 per share, up from $2.10 to $2.30 per share, for the year ending Sept. 30. According to Thomson Reuters, analysts expect $2.37 per share. Scotts said consumer purchases were up 17 percent from October to May, compared with last year, and remained strong in early June.
The company said gardening products were selling the best. Consumer purchases of growing-media products were up 23 percent from last year, and consumer purchases of lawn fertilizer had increased 19 percent.
Scotts credited the results to marketing and promotional efforts, greater advertising spending, and increased hours in retail stores for its sales force. It said it now expects "strong earnings improvement" for its Scotts LawnService unit, although revenue and total customers have decreased from last year.