QUOTE AND NEWS
Benzinga  Nov 19  Comment 
In a report published Wednesday, BTIG Research analyst April Scee initiated coverage on Jarden Corp. (NYSE: JAH) with a Buy rating and $78.00 price target. In the report, BTIG Research noted, “Jarden brings big company marketing, distribution,...
Market Intelligence Center  Nov 18  Comment 
After closing Monday at $66.69, Jarden (JAH) presents an attractive opportunity to get a 2.22% return in just 60 days, which is an annualized return of 13.49% (for comparison purposes only). To enter this trade, sell one Jan. '15 $65.00 call for...
Benzinga  Nov 10  Comment 
Regulus Therapeutics (NASDAQ: RGLS) shares reached a new 52-week high of $25.251. Regulus Therapeutics shares have jumped 265.56% over the past 52 weeks, while the S&P 500 index has gained 14.68% in the same period. BioMarin Pharmaceutical...
Market Intelligence Center  Nov 10  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Jarden (JAH). Look at the Jan. '15 $65.00 covered call for a net debit in the $63.38 area. This trade has a duration of 68 days....
Market Intelligence Center  Oct 28  Comment 
After closing Monday at $64.08, Jarden (JAH) presents an attractive opportunity to get a 3.84% return in just 171 days, which is an annualized return of 8.20% (for comparison purposes only). To enter this trade, sell one Apr. '15 $60.00 call for...
Benzinga  Oct 24  Comment 
Deutsche Bank maintained a Buy rating on Jarden Corporation (NYSE: JAH) in a research note issued Friday and raised its price target from $70 to $72. The company reported 3Q14 EPS of $1.17, $0.01 above analyst expectations. Analyst Faiza...
Market Intelligence Center  Oct 24  Comment 
For a hedged play on Jarden (JAH), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jan. '15 $60.00 covered call for a net debit in the $58.46 area. That is also the break-even stock price for the covered call. This...
MarketWatch  Oct 23  Comment 
Jarden Corp. said Thursday its board has approved a 3-for-2 stock split, to be carried out on Nov. 3. The consumer products company said it will have about 192.4 million shares outstanding after the split. Shares were not yet active in premarket...




 
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
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