Proactiveinvestors recommends
Additional Information
Market: NYSE
Sector: Personal Products
EPIC: NWL
Latest Price: 18.99  (-1.40% Descending)
52-week High: 20.21
52-week Low: 11.14
Market Cap: 5,533.69M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Newell Rubbermaid
www.newellrubbermaid.com

Newell Rubbermaid is a global marketer of consumer and commercial products. The Company’s products are marketed under a portfolio of brands, including Rubbermaid, Graco, Aprica and Levolor.

Full Newell Rubbermaid profile here
Pdf

Newell-Rubbermaid tops Q4 profit views, sales rise almost 4%

27th Jan 2012, 9:19 am by Brad Lemaire
Newell-Rubbermaid tops Q4 profit views, sales rise almost 4%

Newell-Rubbermaid (NYSE:NWL) posted better-than-expected fourth quarter earnings and also announced full-year guidance in line with analyst predictions Friday.

The maker of Rubbermaid storage totes, body care products and Waterman fountain pens reported revenue growth of 3.7 percent to $1.50 billion for the three months that ended December 31, in line with analyst calls for $1.5 billion.

Net income rose 20 percent to $80.4 million, or 28 cents per share, compared to a year-earlier profit of $75.7 million, or 25 cents per share.

The company attributes the increase to higher sales and lower overhead costs, which partly offset inflation and a higher tax rate.

Excluding restructuring costs related to its European transformation plan and project renewal, the company earned 40 cents a share - topping analyst forecasts for a profit of 38 cents a share.

Segment wise, the home and family unit – which makes car seats, strollers and gourmet cookware –posted revenue growth of 1.2 percent to $628.3 million. Core sales were up 0.9 percent as sales were driven by baby and parenting and culinary lifestyle products.

Revenue at its office products business – which ranges from highlighters to label makers and printers – grew 3.7 percent to $439.1 million. Core sales growth was 3.8 percent, with all businesses contributing to the improvement.

For the quarter, sales in its tools, hardware and commercial products unit rose 7.7 percent to $427.8 million. Core sales jumped eight percent, fuelled by construction tools and accessories as well as industrial products.

Selling, general and administrative costs fell slightly to $393.3 million in the latest quarter.

Gross margin edged down 10 basis points to 37.2 percent from 37.3 percent as pricing and productivity offset inflation and costs related to operational issues at the Decor global business unit, the company said.

Newell-Rubbermaid slashed its debt by $137.8 million and bought back 1.5 million of its own stock for $21.7 million during the period.

For the year, the company sees core sales rising two to three percent, excluding an impact from unfavourable currency rates.

It sees earnings of $1.63 to $1.69 per share, which excludes one-time items. Analysts, on average, are looking for $1.69 per share.

Shares rose 8.43 percent to $18.90 in pre-market trade Friday. Its stock closed Thursday at $17.43 per share in New York.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.