Second-quarter earnings from slimmed-down ACCO Brands
ACCO Brands has been shedding some of its less profitable segments and realigning its existing groups since its 2005 spinoff from Fortune Brands
Here are some of ACCO Brands' second-quarter highlights:
- Revenue was up just slightly year over year, with the company showing $464.9 million in quarterly sales.
- Net income was the top story of the call, coming in at $11.7 million, or $0.21 per share, excluding one-time charges.
- Management backed its original 2007 estimates and expects EDITDA to fall in the range of $230 million to $240 million.
ACCO Brands' most successful segment of the quarter was the Computer Products Group. This segment is represented by the company's Kensington brand, which builds wireless computer mice, laser pointers, computer security devices, and Apple iPod accessories. The segment's net sales increased 4% to $53.3 million, over $51.2 million in 2Q 2006. Revenue growth in the segment came mostly from expansion in international markets, despite fierce global competition from larger computer peripheral manufacturers like Microsoft
ACCO Brands investors should keep an eye on the effectiveness of the newly-formed segments of the company and how well Chairman & CEO David D. Campbell positions ACCO Brands in the highly competitive global market for office supplies.
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