Tupperware Net Falls, Hurt by LatAm, Asia

reuters.com Wed January 29, 2003 09:48 AM ET

ORLANDO, Fla. (Reuters) - Tupperware Corp TUP.N , direct marketer for household storage containers, said on Wednesday that profit fell as economic weakness in Latin America and Asia cut into sales.

Tupperware, known for its "Tupperware parties" at which sales representatives demonstrate products in people's homes, receives more than two-thirds of its sales outside the United States and has faced difficulty in Mexico, Venezuela, Korea and the Philippines.

At the same time, reported sales have been boosted by gains in the euro against the dollar.

The company, posted profit of $34.5 million, or 59 cents a share, compared with $28.5 million, or 48 cents a share, a year ago.

But earnings were only 50 cents a share in the quarter when profits from nonoperating items, like land development and the sale of a facility, are excluded, matching analysts' estimates posted on Thomson First Call.

Sales fell 2 percent to $321 million. Sales fell 54 percent to $21.5 in Latin American, where economic difficulties in Mexico and political turmoil and a general strike in Venezuela have weighed on results.

The company said it expects profit of $1.50 to $1.60 a share in 2003. The company had profit of $1.54 a share in 2002, but only $1.30 a share when nonoperating items are excluded. The company expects a 1 cent to 8 cents a share increase in earnings from operations, 6 cents from foreign currency and 13 cents to 18 cents from profits on land development.

Analysts forecast profit of $1.31 to $1.40 cents a share, excluding some unusual items, with an average of $1.38, according to market research firm Thomson First Call.