Energizer First-Quarter Profit Rises, Sales Fall

ST. LOUIS -- Battery maker Energizer (ENR Quote) said Tuesday fiscal first-quarter profit rose 8%, ahead of expectations, but revenue dropped, hurt by lower demand for its batteries.

Profit for the quarter ended Dec. 31 rose to $111 million, or $1.88 per share, from $102.6 million, or $1.74 per share last year. Excluding integration and business realignment costs, net income was $1.93 per share. Year-ago results were weighed down by costs related to its acquisition of Playtex last year.

Revenue fell 12% to $1.04 billion from $1.19 billion last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of $1.73 per share on revenue of $1.08 billion.

The company said sales in its household division -- which includes batteries -- fell due to volume declines in North America.

Results were hurt by hurricane-related and early holiday shipments in the September quarter, higher-than-normal shipments compared to consumption in the year-ago quarter, and retailer destocking.

There has also been a decline in battery consumption in most developed markets, Energizer said.

The company expects the weak battery trend to continue in 2009.

In the company's personal care category, which includes shaving, skin care and other products, profit fell slightly but rose excluding the detriment of the stronger dollar.

In premarket trading, shares rose $3.46, or 7.9%, to $47.50.