Posted Tuesday, May 6, 2008, 6:51 p.m., EST

Spectrum Brands today reported a net loss of $111.7 million on sales of $647.1 million for its second quarter ended March 30, compared to a net loss of $237.5 million on sales of $634.5 million in the year-ago period, during which Spectrum took a goodwill impairment charge of $214 million. In 2008, the company took a similar charge of $8.3 million, related to home and garden brands that it no longer considered as “discontinued operations” due to its curtailing of efforts to sell that business.

Year-to-date, the company reported a loss of $155.1 million on sales of $1.252 billion compared to a net loss of $256.3 million on sales of $1.246 billion.

Spectrum saw its global pet supplies business sales, notably United Pet Group, grow 4.1 percent for the quarter to $148.4 million from the year-ago period. That growth was fueled by 10.3 percent growth in companion animal product sales and international sales increases of 19.5 percent for Europe and 18.7 percent for the Pacific Rim. Global aquatic sales increased 1.5 percent for the quarter, weighed down by an 8 percent decline in North American sales (largely attributed to Wal-Mart’s retreat from live fish sales in many of its stores last year).

By comparison, the company’s overall sales grew 2 percent for the quarter and 0.5 percent year to date.

The pet business posted operating profits of $15.3 million, down 6.7 percent from the year-ago period. Spectrum attributed increased materials and labor costs and foreign exchange effects on the profit drop, and said it expects price increases will offset those factors in the year’s second half.

Year-to-date, Spectrum saw pet supplies operating profits of $32.1 million on sales of $290.9 million, compared to operating profits of $34.7 million on sales of $280.2 million in the year-ago period. <HOME>