ScottsMiracle-Gro Lowers Financial Outlook for Fiscal 2011

The Scotts Miracle-Gro Company SMG today said it expects to report a 2 percent decline in sales for fiscal 2011 when it issues its full-year financial results on November 8. The sales shortfall, coupled with associated gross margin pressure, will likely result in adjusted net earnings in a range of approximately $2.70 to $2.75 per share. The reduced outlook stems primarily from an unexpected year-over-year decline in consumer purchases in the U.S. during September. "While we were counting on another strong fall lawn care season, the weather issues that plagued us throughout fiscal 2011 remained problematic during the fourth quarter," said Jim Hagedorn, chairman and chief executive officer. "The impact of Hurricane Irene and other inclement weather in September all but eliminated lawn and garden activity in key markets during a critical period of our fall season, not only in our consumer business but for Scotts LawnService as well. "Throughout the season, we saw solid consumer engagement when the weather cooperated as witnessed by the fact that consumer purchases in home centers were essentially flat for the year compared with their record levels reported in 2010. But the combination of weather, commodities and challenges in the mass merchant channel were just too much to overcome in a single season. That said, we remain optimistic about the innovation we are bringing to the market in 2012 and we know that our retail partners remain committed to both the lawn and garden category and our brands." ScottsMiracle-Gro will report full year financial results prior to the opening of the U.S. financial markets on November 8 and will host a conference call the same morning. Details of the call will be made available later in October.