Blyth, Inc. stated that its normalized earnings per share are expected to be in the range of $1.45 to $1.50 for fiscal 2009. The company attributes the projected results to lower earnings in PartyLite U.S. due to increased investment spending on promotions to drive sales and consultant count growth and a higher effective tax rate, which will more than offset the favorable impact of fewer shares outstanding and lower net interest expense.
Blyth's fiscal year 2009 estimate excludes anticipated restructuring charges of approximately $0.05 per share related to the North American wholesale home fragrance business, which is being realigned following the divestiture of Blyth's mass channel candle business in fiscal 2008. Reflecting the restructuring charges, reported earnings per share are expected to be $1.40-$1.45.
"We anticipate a challenging macroeconomic environment for fiscal year 2009," said Robert B. Goergen, chairman of the board and CEO, Blyth. "Within our PartyLite direct selling business, we are increasing our investment in mature markets such as the U.S. to ensure early success of new independent sales consultants and a continued strong earnings opportunity for more experienced consultants."
Cash flow from operations in excess of $90 million for the full fiscal year is anticipated. Capital spending of approximately $12 million is also expected for fiscal year 2009.