Newell Q3 profit tops estimates on cost controls, Latam

Reuters

By Dhanya Skariachan

Oct 25 (Reuters) - Newell Rubbermaid Inc reportedbetter-than-expected quarterly profit on Friday, boosted bytight cost controls and strength in its Latin American business.

The maker of Sharpie pens and Rubbermaid storage containershas banked on the fast-growing Latin American market to offsetweakness in crisis-ridden Europe and Asia.

Earlier this year, Newell decided to sell its hardware andteaching aids units to focus on products for contractors and onemerging markets.

Under Chief Executive Mike Polk, a former Unilever Plc

executive who took the helm in July 2011,Newell has kept a tight lid on costs by cutting jobs,consolidating manufacturing and distribution facilities andreducing the number of business units.

Net income in the third quarter rose to $193.3 million, or66 cents a share, from $108.3 million, or 37 cents a share, ayear earlier.

Excluding restructuring costs, tax benefits and a gain fromthe sale of its hardware business, it earned 52 cents a share.On that basis, the average analyst estimate was 49 cents ashare, according to Thomson Reuters I/B/E/S.

Sales rose 2.1 percent to $1.49 billion, while analystsexpected $1.50 billion. Sales rose in Latin America and theUnited States, but fell in its Europe, Middle East and Africaunit and in Asia Pacific.

The company also stood by its full-year profit forecast of$1.80 to $1.84 a share, before items. Analysts expect $1.82.

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