Scotts sales rebound in third quarter

Scotts Miracle-Gro reported solid sales growth in its third quarter, reversing an early-season decline in the lawn and garden sector.

“This has been an odd year, to say the least,” said Jim Hagedorn, Scotts’ chief executive officer, during a call with analysts Tuesday. “The rebound we have witnessed has been really impressive.”

Scotts reported that revenue rose 2 percent to $995 million compared with the yearago quarter, a significant improvement from its second-quarter results, which were down 7 percent compared with a year ago.

Net income was $82 million, a drop of almost $70 million from a year ago mostly because the company took a $65 million charge related to a long-standing lawsuit from its now-defunct wild bird seed business.

Scotts hydroponics business, Hawthorne, which has been hammered by cannabis regulation issues in California, has reached bottom, Hagedorn said. He added that a rebound in hydroponics should occur in 2019 as California works through its regulation logjam.

Scotts also reported that 175 positions have been eliminated in its Hawthorne division as it absorbs Sunlight Supply, which Scotts acquired earlier this year. Hawthorne will move to the West Coast and consolidate from 11 facilities to five as Scotts finds ways to streamline the business. Hagedorn said he hopes to save $35 million through those efforts.

The earnings were announced after the stock market closed. Scotts shares closed up 2.5 percent in trading Tuesday and rose 0.7 percent in after-hours trading.