CSS Q3 income falls, announces share buyback

Source: Manufacturing Digital

Date :10/24/2008 6:20:14 AM

Consumer products company CSS Industries Inc said Thursday, October 23, that net income fell 22 percent due to reduced Christmas sales and higher commodity costs.

For the quarter ended September 30, 2008, sales increased one percent to US$174.2 million from US$172.9 million in 2007.

Net income decreased 22 percent to US$10.5 million, or US$1.03 per diluted share, compared to prior year net income of US$13.5 million, or US$1.22 per diluted share.

CSS blamed the drop on reduced Christmas sales and higher material and fuel costs, and increased interest due to higher borrowings.

“Despite current economic conditions, we continue to believe that earnings for fiscal 2009 will be in the range we announced in May 2008,” commented Christopher J Munyan, President and Chief Executive of CSS. He added that reduced sales and margins of the company’s Christmas products are expected to be offset by contributions from acquired businesses.

In addition, the company's board has authorized an additional buyback of up to 500,000 shares of its common stock.