QUOTE AND NEWS
TheStreet.com  Aug 26  Comment 
NEW YORK (TheStreet) -- RATINGS CHANGES Goldman Sachs was initiated with a buy rating at MKM Partners. Twelve-month price target is $213. The company can post ROE expansion, MKM said. Hewlett-Packard was upgraded to buy at TheStreet...
Benzinga  Aug 26  Comment 
Analysts at Deutsche Bank initiated coverage on Jarden (NYSE: JAH) with a Buy rating. The target price for Jarden is set to $70. Jarden shares have jumped 34.83% over the past 52 weeks, while the S&P 500 index has jumped 22.54% in the same...
SeekingAlpha  Jul 24  Comment 
Jarden (NYSE:JAH) Q2 2014 Earnings Call July 24, 2014 8:30 am ET Executives Rachel Wilson - Martin Ellis Franklin - Co-Founder and Executive Chairman Alan W. Lefevre - Chief Financial Officer and Executive Vice President of...
Market Intelligence Center  Jul 22  Comment 
After Monday’s trading in Jarden (JAH) the algorithms behind MarketIntelligenceCenter.com's Artifical Intelligence Center picked out a trade that offers a 3.56% or 14.76% (for comparison purposes only), while providing 6.18% downside protection....
newratings.com  Jul 3  Comment 
FAIRFIELD (dpa-AFX) - Jarden Corp.(JAH) said Thursday that it has priced ¤300 million in aggregate principal amount of senior notes due 2021 in a private offering to qualified institutional buyers. The closing of the offering is expected to...
SeekingAlpha  May 1  Comment 
Jarden (JAH) Q1 2014 Earnings Call May 01, 2014 8:30 am ET Executives Rachel Schacter - Senior Vice President Martin Ellis Franklin - Founder and Executive Chairman Ian G. H. Ashken - Co-Founder, Vice Chairman, President and Chief...
Market Intelligence Center  Apr 28  Comment 
Jarden (JAH) presents a trading opportunity that offers a 3.52% return in just 54 days. A covered call on Jarden at the $55.00 level expiring on Jun. '14 offers an assigned return rate of 3.52% or 23.79% annualized. This trade offers 4.84%...
Benzinga  Apr 6  Comment 
On Friday, April 4, Well Fargo announced an Outperform rating on Jarden (NYSE: JAH) with a price target of $67 to $69 per share. Wells Fargo cited this as a reason for its price target, “Management's track record of delivering both organic...
Benzinga  Mar 11  Comment 
Jarden Corporation (NYSE: JAH) (the "Company") today announced that it intends, subject to market and other conditions, to offer $600 million in aggregate principal amount of Senior Subordinated Convertible Notes due 2034 (the "Convertible Notes")...
Benzinga  Mar 6  Comment 
Jarden Corporation (NYSE: JAH) today announced the appointment of Ros L'Esperance to its Board of Directors effective immediately. With the appointment, the Company's Board of Directors consists of ten members, including seven independent...




 
TOP CONTRIBUTORS

Jarden Corporation, (NYSE: JAH) a U.S. consumer products manufacturer, owns brands in more than twenty niche markets. The conglomerate makes everything from Mr. Coffee kitchen appliances to Coleman camping products and Bicycle and Bee playing cards. Because Jarden's brands are concentrated in mature, slow-growth markets, [1] the company has seen little organic growth in recent years and has used acquisitions to grow revenue. With approximately $2 billion in debt, the company is highly leveraged and will find further acquisitions more difficult in the face of tightening credit conditions that began in 2008.

Jarden also faces growing competition from its own customers' private label brands. Mass retailers like Wal-Mart are offering fewer third party products as they try to bolster slowing profits with extra revenue from their own lines of generic consumer goods.

Company Overview

As a consumer goods conglomerate, Jarden covers a wide spread of markets. The company has aggressively pursued revenue growth in the past through acquisitions- however, this has not led to significant growth in its net income. To improve its results, the company's management plans to take fuller advantage of potential economies of scale in its manufacturing processes.

Business Financials

In 2009, JAH earned a total of $5.2 billion in revenues. This was a decline from its 2008 total revenues of $5.4 billion. However, despite the decrease in revenues, JAH was able to improve its net income. Between 2008 and 2009, JAH went from a net loss of $59 million in 2008 to a net profit of $129 million in 2009.[2]

Business Segments

JAH operates three primary business segments: Outdoor Solutions, Consumer Solutions and Branded Consumables.

Outdoor Solutions

The Outdoor Solutions segment manufactures or sources, markets and distributes global consumer active lifestyle products for outdoor and outdoor-related activities. For general outdoor activities, Coleman® is a leading brand for active lifestyle products, offering an array of products that include camping and outdoor equipment such as air beds, camping stoves, coolers, among others.[3]

Consumer Solutions

The Consumer Solutions segment manufactures, markets, and distributes a diverse line of household products, including kitchen appliances and personal care and wellness products for home use. This segment maintains a strong portfolio of globally recognized brands including Bionaire®, Crock-Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam® and Villaware®.[4]

Branded Consumables

The Branded Consumables segment manufactures, markets and distributes a broad line of branded consumer products, many of which are affordable, consumable and fundamental household staples, including arts and crafts paint brushes, children’s card games, among others.[5]

Key Trends and Forces

Private Label pressures from major customers

The mass retailers and department stores that Jarden sales its products to are increasingly moving toward private label brands. These brands are typically marketed under the retailer's brand name and come with higher margins than traditional branded products.

Dependency on mass retailers

Jarden's dependency on mass retailer (Wal-Mart Stores (WMT) alone accounted for roughly a quarter of Jarden's total sales. This exacerbates the threat from generic or private-label competition. When Wal-Mart and fellow big-box retailers push their own private-label alternatives to compensate for lower overall retail revenue, Jarden feels the squeeze. The effects of private-label competition are most pronounced in the Branded Consumables segment and in the camping-oriented Coleman product lines.

High commodity costs hurt already declining margins

Low commodity prices are vital to a company like Jarden, since its successful integration of mature low-margin businesses depends on the creation of cost-reducing production and distribution synergies for growth. Thus, rising oil prices put Jarden's cost structure under pressure, especially since its manufacturing business requires vast quantities of energy-derivative materials like resin (see Plastics Prices) and fuel.

Outdoor Solutions sensitive to weather

Jarden's Outdoor Solutions segment is highly responsive to variations in weather patterns. For instance, seasons of heavy snow increase demand for Jarden's various winter sports brands, and thus raises sales for the affected quarters. Similarly, a warm, dry autumn could increase demand for Jarden's Coleman line of camping products (currently one of its weaker offerings).

Competitors

Jarden's spread-out nature makes it impossible to pinpoint a single main competitor. Apart from a few relatively similar consumer goods/appliances conglomerates like Newell Rubbermaid (NWL), which has numbers roughly parallel to Jarden's for earnings and revenue in both business segments, Jarden's primary competitors are conglomerates whose holdings overlap with Jarden's in only a handful of niche markets, small companies entirely invested in niche markets (like Lifetime Brands (LCUT)), and private label competitors, some backed by hefty retailers like Wal-Mart Stores (WMT).

References

  1. Seeking Alpha, "Are Jarden's Earnings Set to Implode?"
  2. JAH 10-K 2009 Item 6 Pg. 36
  3. JAH 10-K 2009 Item 1 Pg. 2
  4. JAH 10-K 2009 Item 1 Pg. 4
  5. JAH 10-K 2009 Item 1 Pg. 7
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki