|Scotts Bonus S found to be killing grass
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|Author:||Doug [ Tue Jun 09, 2015 4:30 pm ]|
|Post subject:||Scotts Bonus S found to be killing grass|
Scotts Bonus S found to be killing grass and is characterized as a â€œhiccupâ€ by CFO Randy Coleman.
Following grass-killing complaints, the company is removing Bonus S from shelves.
June 4, 2015
Scotts Miracle-Gro is taking a multimillion-dollar hit after the company took one of its most-popular products off the shelves in some states.
It took action after numerous customer complaints that the weed-and-feed product wasnâ€™t feeding lawns â€“ rather, it was killing them.
CFO Randy Coleman called the voluntary move a â€œhiccupâ€ but with a cost estimated between $5 million and $7 million, it led the company to temper its earnings guidance. Marysville-based Scotts had expected fiscal 2015 earnings between $3.40 and $3.60 a share. Now it expects it to fall on the lower end of that range, to between $3.40 and $3.50.
Scotts voluntarily took its newly formulated Bonus S weed-and-feed off the shelves and replaced it with the old formula, Coleman told analysts at a New York City conference on May 21. Coleman said there was a â€œspike in consumer complaintsâ€ in South Carolina and Louisiana. Texas and Florida customers were happy, he said.
â€œItâ€™s not to be an issue once we get it behind us,â€ Coleman said.
While most of the complaints are in two states, Scotts said it has replaced â€œeach and every package of these new formula products currently for sale in Louisiana, Ala., Ark., Miss., Ga., N.C., S.C. and parts of Fla.â€ The two impacted products are Scotts Turf Builder Bonus S Southern Weed and Feed and Scotts Snap Southern Weed and Feed.
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