COVINGTON, La. -- Pool Corp., a distributor of swimming pool and backyard supplies, said Thursday that its net income fell 12 percent in the third quarter on an impairment charge related to its U.K. business.
Pool wrote down the value of its U.K. business by $6.9 million during the quarter. The company said its sales improved, but reported smaller profit margins because of price cuts and sales of less favorable products.
Pool made $21.4 million, or 45 cents per share, during the third quarter. That's down from $24.2 million, or 50 cents per share, a year ago. Excluding the goodwill charge for the U.K. business, net income was 59 cents per share. Revenue rose 5 percent, to $528 million.
Analysts expected net income of 56 cents per share and $530 million in revenue, according to FactSet.
The company said revenue from its pool business rose 3 percent and irrigation revenue was up 8 percent. Pool credited its gains to larger market share along with slight growth in customer spending.
Pool now expects net income of $1.80 to $1.83 per share in 2012 excluding the goodwill charge, up from a previous estimate of $1.75 to $1.82 per share. Analysts were forecasting $1.80 per share.
Pool shares rose 14 cents to $41.92 in afternoon trading.