Jarden Corp. Q1 2008 Earnings Call Transcript

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2008-05-08 21:01:08.0

Tags: Jarden Corp.

Question-and-Answer Session

Thank you. [Operator Instructions]. Our first question comes from Charles Strauzer with CJS Securities. Please go ahead.

Charles Strauzer - CJS Securities

Can you hear me, okay?

Martin E. Franklin - Chairman and Chief Executive Officer

Yes.

Charles Strauzer - CJS Securities

Okay, great. Just a have a couple of quick questions maybe Jim this is for you on the... when you look at the segment operating margins consumer operating margins were lot better than I was looking for and outdoors are quite a little bit lighter. Can you get a little bit more color behind there? Was it more mix, or is it more kind of the impacted raw materials?

James E. Lillie - President and Chief Operating Officer

Well, it's a lot of things Charlie. It's mix. It's the impacts of the raw materials. It's reduction in SG&A spending where we thought it was appropriate to do so, so we have a full compliment of initiatives to make sure we maintain the margins given our tough economic environment.

Charles Strauzer - CJS Securities

Got it and what would you expect going into next quarter for outdoors. There was some improvement on the margin side or kind of consistent where we were?

Ian G. H. Ashken - Vice Chairman and Chief Financial Officer

I think Charles this is Ian. The mix is the key element, because obviously the biggest element of Q1 is Coleman and team sports in the end of the Ski season. As we come into Q2, the fishing business kicks in, which as you know is a high margin business. So you should expect to see those go up, but it is a mix within outdoor solutions is the key driver.

Charles Strauzer - CJS Securities

Got it, great. And then just maybe Martin, can you touch a little bit more on what you seeing at some of the big box utilities continue to make self-base gains and you are optimistic for kind of your positioning versus some of your weaker competitors out there specially going into the difficult markets with difficult credits and access to capital?

Martin E. Franklin - Chairman and Chief Executive Officer

Yes, I mean I think that, as just being simplistic about it, whatever happens with the economy, there is no question that we have gained placement when it come to the planograms at some of our major customers at retail. So that will help us in the second half of the year, which is consistent with what I've said before. The business driver in the first half are the outdoor businesses it's really a very small quarter and first half in the JCS, but we've been seeing some progression there as you know as well. We've had some real wins with some new products and new placement in some of our major retailers. So that's reflected in the numbers today.

 

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