UPDATE 2-Energizer profit beats Street view, revenue light

* Q2 EPS ex-items $1.23 vs Street view $1.09

* Sales up 6.2 percent to $935.1 mln

* Shares slip 0.3 pct premarket
(Adds details, background, changes dateline from NEW YORK)

CHICAGO, April 27 (BestGrowthStock) – Energizer Holdings Inc
(ENR.N: ) reported a quarterly profit that beat Wall Street
estimates, helped by favorable currency exchange rates and
sales of its Edge and Skintimate shaving products.

However, the company’s revenue was weaker than expected and
it cited a difficult battery market. Energizer and rival
Duracell have opted to add more batteries to packages in the
U.S. market, where consumers have been buying less expensive
brands.

Energizer’s profit rose nearly 15 percent to $88.5 million
in the fiscal second quarter that ended March 31, compared with
$77 million a year earlier.

On a per share basis, earnings were $1.25, down from $1.30
a year earlier, because of an increase in shares outstanding
after a May 2009 equity issue.

Total sales rose 6.2 percent to $935.1 million.

Excluding items, Energizer earned $1.23 per share, compared
with the average analysts’ forecast of $1.09 earnings per share
on sales of $973.1 million, according to Thomson Reuters
I/B/E/S.

Energizer’s batteries, Schick razors and Playtex tampons
compete against the Duracell, Gillette and Tampax products sold
by Procter & Gamble Co (PG.N: ). Schick’s Hydro razor hit stores
this month, while P&G will introduce updated version of the
popular Gillette Fusion line in June.

Sales in Energizer’s household products business, which
includes batteries, rose 6 percent to $441.8 million, and by
the same percentage to $493.3 million in the personal care
business that was boosted by the June purchase of the
Skintimate and Edge business.

The company called the battery category challenging, saying
an increasing number of devices are using built-in rechargeable
battery systems, particularly in developed markets. That, along
with aggressive competition, could put additional pressure on
the segment’s results going forward.

Energizer said it continues to expect its spending on
advertising and promotion in fiscal 2010 to be up in the range
of 11 to 12 percent of net sales due in part to the support for
the April 6 launch of the Hydro in North America and increased
spending behind Edge and Skintimate. Those costs were 8.2
percent in the second quarter.

It estimated currencies will boost operating profit by
about $15 million to $20 million through the balance of the
year, excluding Venezuela.

Shares of Energizer were off slightly to $62.00 in
premarket trading from Monday’s closing price on the New York
Stock Exchange of $62.18.

Investing Research

(Reporting by Ben Klayman in Chicago; additional reporting by
Phil Wahba in New York, editing by Dave Zimmerman)

UPDATE 2-Energizer profit beats Street view, revenue light