By Chris Nicholls
MIRAMAR, FLORIDA: One of the world’s largest small appliance companies, Salton Inc., has shown a net loss of US$29 million for the three months to 31 March, and issued dire predictions about its future ability to compete in the market.
In its Q1 report, Salton, who distribute the George Foreman range worldwide, as well as Russel Hobbs and Black & Decker in the US, reported sales increased US$86 million year-on-year to US$187.4, with profit rising US$27 million to US$57.9 million. However, operation and tax expenses meant the company posted a net loss of US$29 million.
In its future predictions, Salton said that “the small electric household appliance industry is highly competitive and we may not be able to compete effectively, causing us to lose market share and sales.”
Consolidation in the industry could also reduce their ability to procure product placements at key levels and “limit our ability to sustain a cost competitive position in the industry,” the company said.
Salton also warned potential investors it was “heavily leveraged”, which “may have an adverse effect on our available cash flow” and ability to obtain additional financing in the future, if necessary."
It also said that, “We may not be able to fund our debt service obligations through operating cash flow in the future, which could force us to seek alternative means of funding, possibly on unfavourable terms”.
Salton Australia said it could not comment on the figures, due to it not being the author. Current.com.au has contacted the US parent, but could not reach them due to the time difference.
The full report can be viewed here.