Scotts Miracle-Gro, the nation’s largest supplier of lawn and garden products, has been sentenced to pay a $4 million fine for 11 criminal violations relating to the use of toxic insecticides in its wild bird feed products. The Marysville, Ohio-based company also agreed to  more than $6 million in penalties and $2 million for environmental projects under a settlement that resolves additional civil pesticide violations filed by the Environmental Protection Agency (EPA). 

Marysville, Ohio-based Scotts Miracle-Gro said it expects to report a 2% decline in sales for fiscal 2011 when it issues its full-year financial results Nov. 8.

The sales shortfall, coupled with associated gross margin pressure, will likely result in adjusted net earnings in a range of approximately $2.70 to $2.75 per share, according to the company. The company had forecast earnings of about $3.00 per share back in August.

The challenges from unfriendly weather hit Scotts Miracle-Gro hard in the quarter ended July 2, as sales declined 10% to $1.06 billion.

The decline was driven primarily by poor weather across most of the United States throughout the duration of the lawn and garden season, as well as a more competitive promotional landscape and changes in certain retailer strategies within the mass merchandise channel, the Marysville, Ohio-based company said. 

Scotts Miracle-Gro Co. said it will phase out phosphorus from lawn fertilizers, including the market-leading Scotts Turf Builder brand, by the end of 2012.

Additionally, the Marysville, Ohio-based company said it will sharpen its focus on more efficient and optimized ways to use nitrogen in its lawn fertilizer products.