Tupperware Profits Fall 13%

It guides lower.
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Tupperware's

(TUP) - Get Report

fourth-quarter earnings dropped 13% from a year ago, due to lower sales in North America and Europe.

The company earned $31.2 million, or 51 cents a share, in the quarter, compared with $35.8 million, or 61 cents a share, a year ago. After adjustments, Tupperware earned 54 cents a share in the latest quarter, in line with analysts' estimates. Revenue increased 1.15% from last year to $361.8 million, lower than the consensus estimate of $394 million.

Revenue from Europe declined 12% to $160 million in U.S. dollars and 5% in local currency, hit by lower sales force productivity. The shortfall was mainly in Germany. Revenue from North America was down $18.4 million, including a $3 million decline due to a shift in the promotional calendar that moved sales from the fourth quarter into the third quarter.

Operating profit fell by 21.72% to $34.6 million in the fourth quarter while operating profit margin fell 279 basis points to 9.56%.

The company expects earnings of 35 cents to 37 cents a share for the first quarter of 2006, adjusted for the negative impact of foreign exchange, while analysts surveyed by Thomson First Call estimate 46 cents a share.

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