Jarden CEO Q&A: Why We're Outperforming

NEW YORK (TheStreet) -- Jarden's(JAH) strong brands, diverse products, market leadership in a variety of categories and well-chosen acquisitions continue to allow this niche consumer products company to thrive -- even amid the continued weakness in consumer spending and higher ocean freight costs.

Highlighting the company's position recently was Jarden's strong, second quarter, with adjusted earnings of 83 cents a share vs. the consensus estimate of 74 cents a share, and net sales increase of 22% including 8.7% organic growth.

"The outdoor solutions segment in particular did well, likely the result of consumers spending more on outdoors entertainment that isn't going to break the bank," Morningstar analyst Jeremy Cohen told TheStreet. Well-known Jarden brands include Crock-Pot, Mr. Coffee and K2.

Meanwhile, Jarden continues to see expanding product diversification with its acquisition of Paris-based baby and home care products company Mapa Spontex -- completed in April and one of a series in the company's history -- and maintains four strong buy recommendations, two moderate buy recommendations and two hold recommendations.

Like other rating agencies, Moody's -- which has a positive outlook on Jarden -- notes the company's relatively high leverage given its acquisitive history. However "we do not expect Jarden's leverage to increase by more than half a turn in the near term due to our expectation that the proposed funding for the acquisition and the expected earnings potential of Mapa," analyst Kevin Cassidy and John Diaz wrote in a research report shortly after the acquisition was proposed late last year.

Last week, Jarden CEO Martin Franklin spoke with TheStreet and provided more color on the company's activities in the coming quarters and beyond, in a conversation about the company's product demand, private label competition, acquisition plans and negotiations with powerful retail customers like Wal-Mart (WMT) and Target(TGT). Read on for our Q&A....