Sunbeam’s Losses Narrow in 2nd Quarter

Sunbeam Corp., trying to regain Wall Street’s respect after a 1998 accounting scandal and other problems, said its losses narrowed in its fiscal second quarter, but not as much as analysts had expected. However, stock in the Boca Raton, Fla.-based company rose 38 cents a share to close at $6.31 on the New York Stock Exchange. The maker of household appliances, Coleman camping gear and First Alert smoke alarms said it lost $46.9 million, or 47 cents a share, compared with a loss of $107 million, or $1.06, for the period a year ago, excluding one-time charges. The most recent loss far exceeded analysts’ consensus forecast of 33 cents. Operating cash flow--which is sometimes used by analysts to measure the performance of indebted companies--rebounded to $44 million, from a negative cash flow of $164 million. Revenue rose 14% to $661 million, largely on improved sales of Coleman camping gear and Powermate portable generators. Sales of those products were helped by harsh weather and by people buying supplies in anticipation of year-2000-related mishaps. Sunbeam continues to be hampered by interest costs from borrowing funds for three acquisitions last year. It also continues to wrestle with excess inventories, a problem that began under the leadership of Albert “Chainsaw Al” Dunlap, who was ousted a year ago in a controversy over his management style and after the company experienced a period of losses. In the accounting scandal, Sunbeam was forced to restate several years of results because it overstated sales--recording many sales of goods that hadn’t yet been shipped to retailers. Before the company experienced the accounting scandal nearly 1 1/2 years ago, its shares peaked at $52.