Central Garden & Pet looks optimistic for 2006

The American company reiterated its fiscal 2006 guidance: net sales for the year are projected to be between $1.45 bn and $1.47 bn. Operating income is expected to be between $116 mio and $119 mio including the net impact of $4 mio in costs associated with its previously announced consolidation of its manufacturing and distribution facilities. Net income is expected to be between approximately $63 mio and $65 mio including the profit acceleration programme. The corresponding earnings per fully diluted share are expected to be between $2.80 and $2.90. These projected results do not include the impact from any future acquisitions.
For the fourth quarter of fiscal 2005 the company reported net sales of $323 mio, up 4 per cent from $311 mio in the comparable 2004 period. Net income for the quarter increased 29 per cent to $6.7 mio from $5.2 mio in the same period a year ago, while diluted earnings per share increased 24 per cent to $0.31 from $0.25. Branded product sales increased 7 per cent while sales of other manufacturers’ products declined 6 per cent. Depreciation and amortization for the quarter was $5.4 mio compared to $4.9 mio in the same period last year. “Our commitment to investing in our business resulted in solid demand for our branded products throughout the fiscal year," noted Glenn Novotny, president and chief executive officer.