Newell Rubbermaid 2Q profit rises 23 pct, boosts full-year earnings outlook excluding itemsBy AP
Friday, July 30, 2010
Newell Rubbermaid 2Q profit rises, revenue mixed
ATLANTA — Newell Rubbermaid Inc., which makes consumer products ranging from storage containers and strollers to Sharpie pens, said Friday that its second-quarter profit climbed 23 percent. Overall revenue dipped but revenue from its key products edged up.
CEO Mark Ketchum said strong consumer demand in Latin America and improvements in distribution helped boost its core sales. He said improved productivity and a greater proportion of sales of higher-priced items boost profit margins.
The company also raised it forecast for earnings excluding restructuring costs and related items.
Newell Rubbermaid reported net income of $130.4 million, or 41 cents per share, for the three months ended June 30, up from $105.7 million, or 37 cents per share, a year ago.
Excluding restructuring charges and other one-time items, Newell Rubbermaid earned 51 cents per share. Analysts surveyed by Thomson Reuters expected Newell Rubbermaid to earn 44 cents per share. Those estimates typically exclude one-time items.
Revenue slipped to $1.496 billion from $1.504 billion. But the company said sales of its core items rose 1.5 percent. Analysts expected revenue of $1.52 billion.
Newell Rubbermaid lowered its full-year outlook, saying it expects to earn between $1.16 and $1.26 per share. It previously expected a profit between $1.18 and $1.28 per share.
But excluding one-time items, Newell Rubbermaid said it expects its adjusted profit to be between $1.40 and $1.50 per share. That’s up from its earlier estimate of $1.38 to $1.48 per share.
Newell reaffirmed it expects full-year sales growth in the low to mid single digit range.
Analysts expect a full-year adjusted profit of $1.47 per share with revenue up about 3 percent to $5.76 billion.
Newell Rubbermaid shares closed Thursday at $15.58.
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