Scotts (SMG) Outlines Growth Expectations for FY13; Guides EPS, Revs
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Scotts Co. (NYSE: SMG) announced its outlook for fiscal 2013 in advance of its December 14 Analyst Day.
The Company said it expects company-wide net sales to increase by approximately 1 to 3 percent in fiscal 2013 on flat unit volume and improved pricing.
An anticipated improvement in gross margin rate, along with leverage from SG&A, is expected to result in adjusted earnings per share from continuing operations in the range of $2.50 to $2.75 for fiscal 2013.
The Street sees sales of $2.91 billion and EPS of $2.55.
With more than two thirds of its commodity costs now locked for the year – including about 90 percent of urea – the Company said it expects approximately $20 million in commodity inflation in fiscal 2013, primarily due to higher-cost inventory carried into the fiscal year. Offsetting this headwind, the Company said it will increase prices in the low single digits and that it expects a benefit of approximately $15 to $20 million in savings related to its product cost-out initiatives.
Operating margin rate is expected to be in the range of 11 to 11.5 percent in fiscal 2013. Interest expense is forecasted to be flat to modestly higher compared to fiscal 2012. The effective tax rate for the year is projected to be in a range of 36 to 37 percent.
The Company's operating cash flow goal is expected to be at least $250 million in fiscal 2013.
The Company said it expects company-wide net sales to increase by approximately 1 to 3 percent in fiscal 2013 on flat unit volume and improved pricing.
An anticipated improvement in gross margin rate, along with leverage from SG&A, is expected to result in adjusted earnings per share from continuing operations in the range of $2.50 to $2.75 for fiscal 2013.
The Street sees sales of $2.91 billion and EPS of $2.55.
With more than two thirds of its commodity costs now locked for the year – including about 90 percent of urea – the Company said it expects approximately $20 million in commodity inflation in fiscal 2013, primarily due to higher-cost inventory carried into the fiscal year. Offsetting this headwind, the Company said it will increase prices in the low single digits and that it expects a benefit of approximately $15 to $20 million in savings related to its product cost-out initiatives.
Operating margin rate is expected to be in the range of 11 to 11.5 percent in fiscal 2013. Interest expense is forecasted to be flat to modestly higher compared to fiscal 2012. The effective tax rate for the year is projected to be in a range of 36 to 37 percent.
The Company's operating cash flow goal is expected to be at least $250 million in fiscal 2013.
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