Newell Rubbermaid1Q earnings fall on costs

Newell Rubbermaid 1st quarter net income falls but adjusted results beat expectations

Associated Press

ATLANTA (AP) -- Newell Rubbermaid's net income fell nearly 32 percent, hurt by restructuring costs, but the maker of Sharpie pens and Rubbermaid containers posted adjusted results that beat expectations.

The company also said Friday that it plans to sell its hardware and teach platform businesses. Those units include the Bulldog brand, which makes picture hangers and wall anchors, and Mimio, which makes teaching equipment such as whiteboards.

The consumer products company, which makes Sharpie pens and Rubbermaid containers, said net income for the three months ended March 31 fell to $54.2 million, or 19 cents per share. That compares with net income of $79.3 million, or 27 cents per share last year.

Excluding one-time items such as restructuring and the devaluation of Venezuelan currency, earnings totaled 35 cents per share. Analysts expected 32 cents per share.

Revenue edged down less than 1 percent to $1.24 billion from $1.25 billion a year ago. Analysts expected $1.32 billion.

Newell Rubbermaid Inc. announced in October that it was restructuring its business under two groups, a development organization and a delivery organization. The company also said that it planned to cut more than 1,900 jobs, or about 10 percent of its worldwide workforce, over the next 2 1/2 years.

It said that savings from the job cuts would be reinvested into expanding its brands globally and adding new sales capabilities in emerging markets. It expects to save $270 million to $325 million by the second quarter of 2015 as part of its cost-cutting plan, including $90 to $100 million in the first half of 2013.

Revenue from its writing segment, which includes Sharpie and Paper Mate, fell 9 percent to $340.6 million, hurt by weakness at office supply retailers and a planned change to distribution in China.

Revenue from home solutions, including Rubbermaid containers rose 3.7 percent to $338.9 million. Tools revenue fell 1 percent to $188.6 million.

Looking forward, Newell Rubbermaid expects full-year earnings of $1.78 to $1.84 per share, excluding one-time items. Analysts expect $1.82 per share.

Shares of Newell Rubbermaid rose 56 cents to $26.96 in morning trading, retreating slightly after reaching a 52-week high of $27.

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