Tupperware's Sales Drop, Expects Second-Quarter Profit Shortfall

The food container company said it met analyst estimates on lower sales.

Author:: Michael Dunn
Publish date:: Apr 23, 2002 7:52 AM EDT

Tupperware

posted results in line with guidance and analyst estimates, but saw its first-quarter profits drop by about 4%.

The food container direct marketer said its net income, excluding charges, was $16.2 million, or 28 cents a share, in line with Thomson Financial/First Call analyst estimates, but down from 33 cents a share in the year-ago quarter.

Reported net income, including re-engineering costs, was $15.6 million, or 27 cents a share, down from $19.9 million, or 30 cents a share, a year ago.

Sales for the first quarter dropped to $251.9 million from $263.70 million last year.

The company said its good results in North America were offset by lower profitability in international markets, requiring an "elevated level of promotional spending" in Europe, Asia, and Mexico.

For the rest of the year, Tupperware said it expects to see a mid-single-digit increase in sales, and the company remains comfortable with analyst estimates of full-year earnings of $1.69 a share. For the second quarter, the company sees lower-than-expected results of 43 cents a share, vs. analyst estimates of 49 cents.

Shares of Tupperware closed Monday at $23.22 before the news.