inability to convince an adequate number of people to sell its plastic refrigerator boxes will cause it to post an unexpected loss in the third quarter. The company doesn't see the situation improving before the second half of next year.
The Orlando, Fla., company expects to lose 2 cents or 3 cents a share in the third quarter, compared with the consensus analyst forecast for earnings of 7 cents a share, according to Thomson First Call. The company sees full-year earnings of 76 cents to 81 cents, compared with a consensus estimate of $1.04 a share.
The company expects 2003 revenue to fall 30% from 2002's $1.1 billion.
Tupperware blamed a smaller, less-active sales force.
"Unfortunately, we did not start to see recruiting momentum shift in the U.S. until September. The sales force size deficit is simply too great to provide a sales recovery in the fourth quarter," Tupperware said in a statement. "Our focus going forward continues to be consistency in recruiting."
The company said its domestic cosmetics operation continues to do well, as do all its operations outside of the U.S. It said working capital isn't an issue and in fact is improving.
The shares closed Wednesday down 12 cents, or 0.7%, at $16.34.