ScottsMiracle-Gro updates outlook to reflect robust consumer sales

The Scotts Miracle-Gro Company updated its financial outlook for fiscal 2010 based on strong continued demand for its products in the United States. The company said it expects adjusted earnings for fiscal 2010 to be in a range of $3.25 to $3.35 per share.

SMG expects sales growth to range from 5 to 7 percent for the full year and gross margins to improve by up to 100 basis points. It also reaffirmed its outlook that free cash flow would be at least $200 million.

Consumer purchases of the company's products in the U.S., as measured by point-of-sale data from its largest retail partners, have increased more than 6 percent on a fiscal year-to-date basis through the first weekend of June. Improvements were posted in every major product category. This growth has been led by consumer purchases of growing media products, which have improved 10 percent year-to-date on the continued strength of gardening activities.

In early May, the Company said it expected earnings to be at least $3.25 per share, compared with adjusted earnings per share of $2.62 a year ago.

"Consumers remain engaged in our category and we continue to believe we are gaining market share," said Jim Hagedorn, chairman and chief executive officer. "Consumer engagement in May remained strong even though year-over-year consumer purchases declined from their exceptionally high levels in 2009. We expected May comparisons to be challenging, however, and now that we have cleared the peak of our season, we believe it is appropriate to establish a tighter range around our outlook."

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