Spectrum Brands Holdings, Inc. (NYSE:SPB) is a diversi ed consumer product company that produces batteries, personal care, pet care, home and garden, hardware and auto care products for retail customers. e company reported scal third quarter (ending June) results that were well below Street expectations due to several transitory factors which included the e ects of plant consolidation projects in the company’s auto care and hardware segments plus some retailer destocking activity in home and garden and auto care due to unfavorable weather in key US markets. Spectrum is also exiting some unpro table product lines which created a negative headwind for the company’s sales. Most of these issues should be cleared up in a quarter or two as the company did not adjust its scal year 2017 (ending Sept.) guidance despite the weak third quarter. In addition, with the sale of its stake in insurance company, Fidelity & Guaranty Life (FGL), HRG Group (HRG - 58% ownership in SPB) will work with Spectrum to clarify this ownership overhang while maximizing value for HRG shareholders and being earnings per share accretive for Spectrum.
From Keeley All Cap Value Fund's third quarter 2017 commentary.
