ORLANDO, Fla. (AP) — The stronger dollar dragged revenue lower at Tupperware during second quarter, the company's net income slid 81 percent and it cut its full-year adjusted earnings guidance Wednesday.
The company beat Wall Street expectations for the most recent quarter, but it said that the strong dollar would continue to dampen results going forward and also cited the harsh economic climate.
Revenue declined 5 percent to $638.9 million from $669.9 million, but excluding the impact of currency, revenue actually climbed 5 percent.
The crisis in Europe and a slowdown in Asia has pushed the dollar higher and hit companies hard that due business overseas. Not only do products become more expensive, or margins thinner, but when currency is switched back to the dollar, companies take another hit.
Chairman and CEO Rick Goings said that Tupperware continues to see momentum building in emerging markets, which made up 61 percent of its quarterly sales. Sales dropped in Europe and North America during the quarter, while South America and the Asia Pacific region experienced growth.
Net income for the period ended June 30 slid to $12.7 million, or 22 cents per share. That compares with $65.1 million, or $1.03 per share, a year earlier.
Stripping out the stronger dollar's impact, some impairment charges and other items, earnings were $1.31 per share.
Wall Street predicted lower earnings of $1.27 per share.
For the year, Tupperware Brands Inc., based in Orlando, Fla., now expects adjusted earnings of $4.81 to $4.91 per share. It previously predicted $5 to $5.10 per share. The company forecasts third-quarter adjusted earnings of 87 to 92 cents per share.
Analysts expect full-year earnings of $4.99 per share and third-quarter earnings of 95 cents per share.