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Rayovac warns
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September 20, 2001: 6:49 a.m. ET
Battery maker says economy, terrorist attacks will hurt 4Q and FY 2002 results
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NEW YORK (CNNfn) - Battery maker Rayovac Corp. warned Thursday that fiscal fourth-quarter and 2002 results would miss Wall Street expectations, hurt by a continuing slowdown in U.S. battery sales.
For the fourth quarter ending this month, Rayovac now anticipates earnings of 25 cents to 27 cents a share instead of the 50 cents a share forecast by analysts, according to the consensus compiled by research firm First Call. Sales for the quarter are expected to be flat to lower from the year-earlier period.
The company anticipates fiscal 2002 earnings of $1.25-$1.30 a share, compared with Wall Street's $1.51 a share forecast.
Madison, Wis.-based Rayovac said the slowdown in computer, electronic and telecommunications sales combined with a general retail slowdown has hurt sales. Last week's terrorist attacks on the World Trade Center and the Pentagon are likely to have further negative impact on retailers, adding to pressure on Rayovac's results, the company said.
Rayovac also noted that sales, which have historically grown 5 to 7 percent annually, have slowed significantly over recent months and are now showing no growth on a year-over-year comparison.
"Cautious inventory management by U.S. retailers, who appear to be anticipating a difficult holiday season, is impacting battery orders," the company said.
Rayovac has undergone a major restructuring over the past year, eliminating 15 percent of its work force, closing two plants and eliminating non-core manufacturing operations.
The company said industry growth is now expected to slowly recover over the next 12 months, and expects 4-5 percent sales growth for fiscal 2002.
Rayovac's (ROV: Research, Estimates) shares finished down 35 cents at $16.25. 
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Rayovac
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