SALTON RESULTS BOOSTED BY BRANDS.
For the quarter net sales increased 93.6 percent to $134.7 million -- a company record -- compared with $69.6 million in the same period last year.
Net income increased nearly 105 percent to $6.9 million compared with $3.4 million in the same quarter a year ago.
For the year net sales jumped 65.6 percent to $506.1 million, compared with $305.6 million in the same period last year. Net income for the year increased 126 percent to $34.5 million compared with $15.3 million for the year earlier.
Leonhard Dreimann, Salton chief executive officer, said the results were record breaking for Salton on an operating basis and gave the credit to Salton's brands.
"They reflect continued strong consumer demand for our products, including George Foreman Grills, Farberware and Juiceman product lines," he said.
Analysts agreed, but pointed out that Salton's private-label business has also been strong. "This is a company that has built itself in branded consumer products," said Peter Schaeffer, vice president for Donaldson, Lufkin & Jenrette. "However, they still have a big business in private label for Kmart, Sears, QVC and Williams-Sonoma. That business has been a big growth provider for them."
Dreimann also noted the company's global expansion plans got a kick start in the past year through agreements with the Canadian retailer Zellers and with Salton's recent move to buy stock in the South African appliance maker Amalgamated Appliance Holdings Ltd.
Schaeffer said the global test will be whether George Foreman can play to a foreign crowd. "The question is, do the brands mean anything outside the United States or whether the product is good enough to stand on its own," he said.
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|Publication:||HFN The Weekly Newspaper for the Home Furnishing Network|
|Article Type:||Statistical Data Included|
|Date:||Sep 13, 1999|
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