Central Garden & Pet Co. swings to Q4 loss, hits 52-week low
Shares of Central Garden & Pet Co. (Nasdaq: CENT) have fallen to a new 52-week low on news after the close on Tuesday that the maker of lawn and garden products and pet supplies swung to a net loss in its fiscal fourth quarter.
The Walnut Creek, Calif.-based company reported that its net loss for the fourth quarter ended Sept. 29 was $1.7 million, or $0.02 per share, compared with a net income of $6 million, or $0.08 per share, a year earlier. Nine analysts polled by Thomson Financial were looking for a net income of $0.03 per share.
Net sales slipped 5% to $401 million from $421 million during the last three months of fiscal 2006.
Leading the way down were sales of pet products, which suffered a decline of 7% to $221 million, from $237 million a year earlier. Sales of garden products decreased 2% to $180 million, from $184 million.
The company estimates that over 62% of U.S. households own a pet, up from 57% in the late 1990s, while about 50% own either a cat or a dog.
For the entire fiscal 2007, Central Garden & Pet Co. reported a net income of $32.3 million, 51% lower than the $65.5 million in profit in fiscal 2006. Net sales for the year increased 3% to $1.67 billion from $1.62 billion in fiscal 2006.
At 1:10 p.m. ET, shares of Central Garden & Pet Co. (CENT) had shed $1.32, or 21%, to $5.11. The previous 52-week low of $5.97 was set on Nov. 20. The 52-week high of $18.26 was reached on Dec. 5.
