Exibit 99.1
Tupperware Announces Higher Expectation for Third Quarter Results
and U.S. Business Streamlining
ORLANDO, Fla., Sept. 30 /PRNewswire-FirstCall/ -- Tupperware Corporation
(NYSE: TUP) announced today that it expects to report third quarter 2004
diluted earnings per share of 16 - 18 cents, reflecting net income of
$9.2 - $10.8 million. The quarter is expected to include 11 cents from a gain
on land development and three cents of re-engineering costs. Excluding these
items, diluted earnings per share is expected to be 8 - 10 cents compared with
breakeven last year.
The 16 - 18 cents in the third quarter would be 10 - 11 cents higher than
the outlook given in July. A major component of the improvement is
5 - 6 cents of higher earnings from the Company's segments, mainly Europe and
Asia Pacific. Additionally, lower than foreseen third quarter re-engineering
costs, interest expense and income taxes contribute to the improvement, along
with a slightly higher gain on land development.
Third quarter 2004 sales are expected to be up slightly versus the 2003
quarter, although down slightly excluding the favorable impact of foreign
exchange on the comparison.
Today, the Company announced a headcount reduction in its Tupperware U.S.
business and will record a re-engineering charge in the fourth quarter of
approximately $1.0 million for cash severance costs. The resulting
streamlined organization will be appropriate under the Company's new sales
force compensation plan and to align its cost structure with the current sales
level. Annualized savings from these actions are expected to be approximately
$2.7 million. This is incremental to previously announced value chain
improvements.
After considering anticipated third quarter results and its current
business trends and plans, the Company is confirming its previous full-year
outlook range of $1.28 - $1.38 per diluted share. The Company expects to
narrow this range upon reporting third quarter results on October 18, 2004.
This outlook reflects the continuation of good results in BeautiControl North
America, Latin America and many Asia Pacific markets. It also reflects
continued weakness in the United States and Japan and lower productivity
evidenced through fewer parties in Germany during its Fall promotional period.
Included in this outlook is 13 cents of gains on land development, which have
already been realized through the third quarter, and six cents of re-
engineering costs.
The Company expects an insurance recovery associated with hurricane damage
at its Orlando headquarters. The amount to be recovered is expected to be
agreed upon by year-end 2004 and reflected in fourth quarter results; however,
no estimate is included in the outlook range.
"We have taken these actions in our U.S. business as part of an ongoing
effort to improve our value chain while we rebuild the sales force through
implementation of the Taste of Tupperware Party and our new sales force
compensation plan," said Rick Goings, Chairman and Chief Executive Officer.
"We are pleased with our results this quarter and to be able to confirm our
full-year guidance range."
Tupperware will announce its third quarter earnings on October 18, 2004
and a conference call will be held at 10:00 a.m. Eastern time. If you would
like to participate in the call, please dial 913-981-5510, about five minutes
prior to the scheduled start time to reserve your place. A replay recording
will be available starting at 1:00 p.m. Eastern. The replay dial number is
888-203-1112 or 719-457-0820, passcode 921473.
This call will also be available via a live and archived audio Webcast at
http://www.Tupperware.com .
Tupperware Corporation, a $1.2 billion multinational company, is one of
the world's leading direct sellers, supplying premium food storage,
preparation and serving items to consumers in almost 100 countries through its
Tupperware brand. In partnership with one million independent sales
consultants worldwide, Tupperware reaches consumers through informative and
entertaining home parties; retail access points in malls and other convenient
venues; corporate and sales force Internet web sites; and television shopping.
Additionally, premium beauty and skin care products are brought to customers
through its BeautiControl brand in North America, Latin America and Asia
Pacific. Consumers can access the brands' web sites at
http://www.tupperware.com and http://www.beauticontrol.com .
Tupperware stock is listed on the New York Stock Exchange (NYSE: TUP).
Statements contained in this release which are not historical fact and use
predictive words such as "outlook" or "target" are forward-looking statements.
These statements involve risks and uncertainties which include recruiting and
activity of the Company's independent sales forces, the success of new product
introductions and promotional programs, the ability to obtain all government
approvals on land development, the success of buyers in attracting tenants for
commercial developments, the effects of economic and political conditions
generally and foreign exchange risk in particular and other risks detailed in
the Company's report on Form 8-K dated April 10, 2001, as filed with the
Securities and Exchange Commission.
Non-GAAP Financial Measures
The Company has utilized non-GAAP financial measures in this release,
which are provided to assist in investors' understanding of the Company's
results of operations. The adjustment items materially impact the
comparability of the Company's results of operations. The adjusted information
is intended to be more indicative of Tupperware's primary operations, and is
intended to assist investors in evaluating performance and analyzing trends
across periods. The non-GAAP financial measures exclude gains on land
development. While the Company is engaged in a multi-year program to sell
land for development, this activity is not part of the Company's primary
business operation. Additionally, the gains recognized in any given period
are not necessarily indicative of gains which may be recognized in any
particular future period. For this reason, these gains are excluded from
indicated earnings per share amounts. Also, the Company periodically records
exit costs as defined under Statement of Financial Accounting Standards No.
146, "Accounting for Costs Associated with Exit or Disposal Activities", and
believes these amounts are similarly volatile and impact the comparability of
earnings across quarters. Therefore, they are also excluded from indicated
earnings per share calculations to provide what the Company believes
represents a more useful measure for analysis and predictive purposes.
SOURCE Tupperware Corporation
-0- 09/30/2004
/CONTACT: Jane Garrard of Tupperware Corporation, +1-407-826-4522 /
/Web site: http://www.tupperware.com
http://www.beauticontrol.com /
/Audio: http://www.tupperware.com /
(TUP)
CO: Tupperware Corporation; BeautiControl
ST: Florida, Japan, Germany
IN: HOU
SU: ERP CCA MAV