Solid Annual Sales Growth, Gross Margin Expansion and Cash Flow Expected to
Continue in 2007
ATLANTA, Jan. 30, 2007 /PRNewswire-FirstCall/ -- Newell Rubbermaid Inc.
(NYSE: NWL) today reported fourth quarter and full year 2006 results,
reflecting strong annual internal sales growth and gross margin expansion.
Full Year 2006 Results
Net sales for the twelve months ended December 31, 2006 grew 8.5
percent to $6.20 billion, compared to $5.72 billion in the prior year.
Internal sales, which excludes the effect of the DYMO acquisition,
increased 4.7 percent. The Home & Family segment posted double digit sales
growth, while Office Products, Rubbermaid Home, Rubbermaid Commercial and
the Irwin and Lenox branded businesses delivered mid single digit sales
increases.
"2006 was a very successful year for Newell Rubbermaid. Through the
hard work of our employees, we made tremendous progress generating
sustainable sales growth, expanding gross margin and optimizing our
portfolio," said Mark Ketchum, president and chief executive officer of
Newell Rubbermaid. "We will build on these accomplishments in 2007 as we
continue our multi-year transformation into a global consumer products
company with world class talent and processes, best total cost position and
brands that matter to the consumer."
Gross margin was 33.4 percent, a 260 basis point improvement over the
prior year. The expansion reflects strong productivity, pricing and
favorable mix, partially offset by raw material inflation.
Excluding Project Acceleration restructuring costs of $66.4 million in
2006 and $51.2 million in 2005, operating income improved $104.0 million to
$723.0 million, a 16.8 percent increase over the prior year. Excluding
charges, income from continuing operations was $518.9 million, or $1.88 per
share, an 18.1 percent increase over the prior year's result of $439.2
million, or $1.60 per share. Income from continuing operations in 2006
included one-time tax benefits of $102.8 million, or $0.36 per share,
versus one-time tax and other benefits of $0.35 per share in the prior
year.
Income from continuing operations, as reported, was $470.7 million, or
$1.71 per share, compared to $406.3 million, or $1.48 per share, in the
prior year. A reconciliation of the results "as reported" to results
"excluding charges" is attached to this press release.
Net cash provided by operating activities was $643.4 million, compared
to $641.6 million for the prior year. Capital expenditures were $138.3
million, compared to $92.2 million for the prior year. Dividends were
$232.8 million, compared to $231.5 million for the prior year.
For the full year 2006, the company recorded a net loss from
discontinued operations of $85.7 million, reflecting the results and
disposal of the Home Decor Europe and Little Tikes businesses. This net
loss is not included in the results of continuing operations reported
above.
Fourth Quarter 2006 Results
Net sales for the fourth quarter ended December 31, 2006 rose 3.5
percent to $1.64 billion, compared to $1.58 billion in the prior year.
Internal sales increased 0.9 percent in the fourth quarter 2006, led by
high single digit growth in the Office Products and Home & Family segments.
In the fourth quarter 2006, we combined our Cleaning & Organization and
Home Fashions segments for public reporting purposes, as these businesses
sell to similar major customers, produce products that are used in and
around the home and leverage the same management structure. This segment is
known as Cleaning, Organization & Decor.
Gross margin for the fourth quarter 2006 improved to 32.9 percent, a
260 basis point improvement over the prior year. The expansion was driven
by productivity, pricing and favorable mix.
Excluding Project Acceleration restructuring costs of $16.1 million in
the fourth quarter 2006 and Project Acceleration restructuring costs of
$51.2 million and the reversal of impairment charges of $5.8 million in the
prior year, income from continuing operations was $104.2 million, or $0.38
per share, for the fourth quarter 2006, compared to the prior year's result
of $113.8 million, or $0.41 per share. Income from continuing operations in
the fourth quarter 2006 includes the reversal of one-time tax benefits of
$13.0 million, or $0.05 per share.
Income from continuing operations, as reported, was $92.3 million, or
$0.33 per share, for the fourth quarter 2006, compared to $85.3 million, or
$0.31 per share, in the prior year.
Net cash provided by operating activities was $239.1 million in the
fourth quarter 2006, an increase of 25.6 percent over the prior year's
result of $190.3 million. Capital expenditures were $44.2 million, versus
$22.3 million in the prior year. Dividends paid were $58.2 million, or
$0.21 per share, versus $57.8 million in the prior year.
For the fourth quarter 2006, the company recorded a net gain from
discontinued operations of $9.9 million, reflecting the results and
disposal of the Home Decor Europe and Little Tikes businesses. This net
gain is not included in the results of continuing operations reported
above.
2007 Outlook
Full Year 2007
The company believes internal sales growth will be in the low to mid
single digits, driven primarily by core sales growth and favorable
currency. The company projects full year gross margin expansion of 125 to
175 basis points.
Excluding Project Acceleration restructuring costs of approximately
$100 to $130 million ($85 to $110 million after tax), the company believes
earnings per share from continuing operations will range from $1.69 to
$1.75 for the full year. Net cash provided by operating activities is
forecast between $575 and $625 million, including approximately $100 to
$125 million in cash restructuring costs in connection with Project
Acceleration. Upon completion, Project Acceleration is projected to deliver
annualized savings in excess of $120 million. The company expects capital
expenditures of $140 to $160 million and dividends of approximately $234
million.
A reconciliation of full year 2006 results and 2007 earnings outlook is
as follows:
FY 2006 FY 2007
Diluted earnings per share from
continuing operations (as reported): $1.71 $1.35 - $1.41
Project Acceleration restructuring costs $0.17 $0.30 - $0.39
Diluted earnings per share from continuing
operations (excluding charges): $1.88 $1.69 - $1.75
Tax benefits ($0.36) $0.00
"Normalized" EPS: $1.52 $1.69 - $1.75
First Quarter 2007
The company believes internal sales will increase low single digits.
Net cash provided by operating activities is forecast in the range of $(25)
to $25 million and capital expenditures in the range of $35 to $45 million.
The company expects earnings per share from continuing operations for
the first quarter 2007 to be in the range of $0.21 to $0.23, excluding
approximately $20 to $40 million ($17 to $34 million after tax) of Project
Acceleration restructuring costs.
A reconciliation of first quarter 2006 results and 2007 earnings
outlook is as follows:
Q1 2006 Q1 2007
Diluted earnings per share from
continuing operations (as reported): $0.47 $0.12 - $0.14
Project Acceleration restructuring costs $0.03 $0.06 - $0.12
Diluted earnings per share from continuing
operations (excluding charges): $0.50 $0.21 - $0.23
Tax benefits ($0.28) $0.00
"Normalized" EPS: $0.22 $0.21 - $0.23
Conference Call
The company's fourth quarter 2006 earnings conference call is scheduled
for today, January 30, 2007, at 9:00 a.m. ET. To listen to the webcast, use
the link provided under Events & Presentations in the Investor Relations
section of Newell Rubbermaid's Web site at http://www.newellrubbermaid.com. The
webcast will be available for replay for two weeks. A brief supporting
slide presentation will be available prior to the call under Quarterly
Earnings in the Investor Relations section on the company's Web site.
Analyst Day
The company will host its Analyst Day on February 13, 2007, in New York
City. Those interested in attending should contact Newell Rubbermaid's
Investor Relations Department at (770) 407-3994 or via email at
investor.relations@newellco.com to obtain registration instructions. The
event will also be web cast and the link will be located on the Investor
Relations section of the company's Web site at http://www.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
The statements in this press release that are not historical in nature
constitute forward-looking statements. These forward-looking statements
relate to information or assumptions about the effects of Project
Acceleration, sales, income/(loss), earnings per share, operating income or
gross margin improvements, capital and other expenditures, cash flow,
dividends, restructuring costs, costs and cost savings, debt ratings, and
management's plans, projections and objectives for future operations and
performance. These statements are accompanied by words such as "expect,"
"project," "will," "believes," "estimate" and similar expressions. Actual
results could differ materially from those expressed or implied in the
forward-looking statements. Important factors that could cause actual
results to differ materially from those suggested by the forward-looking
statements include, but are not limited to, our dependence on the strength
of retail economies; competition with other manufacturers and distributors
of consumer products; major retailers' strong bargaining power; changes in
the prices of raw materials; our ability to develop innovative new products
and to develop, maintain and strengthen our end-user brands; our ability to
expeditiously close facilities and move operations while managing foreign
regulations and other impediments; our ability to implement successfully
information technology solutions throughout our organization; our ability
to improve productivity and streamline operations; the risks inherent in
our foreign operations and those factors listed in the company's most
recent quarterly report on Form 10-Q, including Exhibit 99.1 thereto, filed
with the Securities and Exchange Commission.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of
Regulation G promulgated by the Securities and Exchange Commission.
Included in this release is a reconciliation of these non-GAAP financial
measures to the most directly comparable financial measures calculated in
accordance with GAAP.
About the Company
Newell Rubbermaid Inc. is a global marketer of consumer and commercial
products with sales of approximately $6 billion and a strong portfolio of
brands, including Sharpie(R), Paper Mate(R), DYMO(R), EXPO(R), Waterman(R),
Parker(R), Rolodex(R), IRWIN(R), LENOX(R), BernzOmatic(R), Rubbermaid(R),
Graco(R), Calphalon(R) and Goody(R). The company is headquartered in
Atlanta, Ga., and has approximately 23,500 employees worldwide.
This press release and additional information about the company are
available on the company's Web site http://www.newellrubbermaid.com.
NWL-EA
Ron Hardnock
Vice President, Investor Relations
Esther Lippman
Senior Manager, Public Relations
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Reconciliation of Results "As Reported" to Results "Excluding Charges"
Three Months Ended December 31,
2006
As Reported Charges(1) Excl.
Charges
Net sales $1,638.2 $1,638.2
Cost of products sold 1,098.5 - 1,098.5
GROSS MARGIN 539.7 - 539.7
% of sales 32.9% 32.9%
Selling, general &
administrative expenses 356.7 - 356.7
% of sales 21.8% 21.8%
Impairment charges - - -
Restructuring costs 16.1 (16.1) -
OPERATING INCOME 166.9 16.1 183.0
% of sales 10.2% 11.2%
Nonoperating expenses:
Interest expense, net 29.8 - 29.8
Other expense/(income) 2.0 - 2.0
31.8 - 31.8
INCOME BEFORE INCOME TAXES 135.1 16.1 151.2
% of sales 8.2% 9.2%
Income taxes 42.8 4.2 47.0
Effective rate 31.7% 31.1%
INCOME FROM CONTINUING OPERATIONS 92.3 11.9 104.2
% of sales 5.6% 6.4%
Discontinued operations, net of tax:
Net gain/(loss) 9.9 (9.9) -
NET INCOME $102.2 $2.0 $104.2
% of sales 6.2% 6.4%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.34 $0.04 $0.38
Diluted $0.33 $0.04 $0.38
GAIN/(LOSS) PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $0.04 $(0.04) $-
Diluted $0.04 $(0.04) $-
EARNINGS PER SHARE:
Basic $0.37 $0.01 $0.38
Diluted $0.37 $0.01 $0.38
Average shares outstanding:
Basic 274.8 274.8
Diluted 275.9 275.9
Three Months Ended December 31,
2005
As Charges Excl. YOY
Reported (2) Charges % Change
Net sales $1,583.0 $1,583.0 3.5%
Cost of products sold 1,102.8 - 1,102.8
GROSS MARGIN 480.2 - 480.2 12.4%
% of sales 30.3% 30.3%
Selling, general &
administrative expenses 307.3 307.3 16.1%
% of sales 19.4% 19.4%
Impairment charges (5.8) 5.8 -
Restructuring costs 51.2 (51.2) -
OPERATING INCOME 127.5 45.4 172.9 5.8%
% of sales 8.1% 10.9%
Nonoperating expenses:
Interest expense, net 31.0 - 31.0
Other expense/(income) (22.5) - (22.5)
8.5 - 8.5 274.1%
INCOME BEFORE INCOME TAXES 119.0 45.4 164.4 (8.0)%
% of sales 7.5% 10.4%
Income taxes 33.7 16.9 50.6 (7.1)%
Effective rate 28.3% 30.8%
INCOME FROM CONTINUING OPERATIONS 85.3 28.5 113.8 (8.4)%
% of sales 5.4% 7.2%
Discontinued operations, net of tax:
Net gain/(loss) (8.3) 8.3 -
NET INCOME $77.0 $36.8 $113.8 (8.4)%
% of sales 4.9% 7.2%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.31 $0.10 $0.41
Diluted $0.31 $0.10 $0.41
GAIN/(LOSS) PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.03) $0.03 $-
Diluted $(0.03) $0.03 $-
EARNINGS PER SHARE:
Basic $0.28 $0.13 $0.41
Diluted $0.28 $0.13 $0.41
Average shares outstanding:
Basic 274.4 274.4
Diluted 274.9 274.9
(1) Charges excluded from "as reported" results for 2006 consist of $16.1
million of Project Acceleration restructuring costs and a $9.9
million net gain related to discontinued operations.
(2) Charges excluded from "as reported" results for 2005 consist of the
reversal of $5.8 million in impairment charges, $51.2 million of
Project Acceleration restructuring costs and an $8.3 million net loss
related to discontinued operations.
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Reconciliation of Results "As Reported" to Results "Excluding Charges"
Twelve Months Ended December 31,
2006
As Reported Charges(1) Excl.
Charges
Net sales $6,201.0 $6,201.0
Cost of products sold 4,131.0 - 4,131.0
GROSS MARGIN 2,070.0 - 2,070.0
% of sales 33.4% 33.4%
Selling, general &
administrative expenses 1,347.0 - 1,347.0
% of sales 21.7% 21.7%
Impairment charges - - -
Restructuring costs 66.4 (66.4) -
OPERATING INCOME 656.6 66.4 723.0
% of sales 10.6% 11.7%
Nonoperating expenses:
Interest expense, net 132.0 - 132.0
Other expense/(income) 9.7 - 9.7
141.7 - 141.7
INCOME BEFORE INCOME TAXES 514.9 66.4 581.3
% of sales 8.3% 9.4%
Income taxes 44.2 18.2 62.4
Effective rate 8.6% 10.7%
INCOME FROM CONTINUING OPERATIONS 470.7 48.2 518.9
% of sales 7.6% 8.4%
Discontinued operations, net of tax:
Net loss (85.7) 85.7 -
NET INCOME $385.0 $133.9 $518.9
% of sales 6.2% 8.4%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $1.71 $0.18 $1.89
Diluted $1.71 $0.17 $1.88
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.31) $0.31 $-
Diluted $(0.31) $0.31 $-
EARNINGS PER SHARE:
Basic $1.40 $0.49 $1.89
Diluted $1.40 $0.48 $1.88
Average shares outstanding:
Basic 274.6 274.6
Diluted 275.5 283.8
Twelve Months Ended December 31,
2005
As Charges Excl. YOY
Reported (2) Charges % Change
Net sales $5,717.2 $5,717.2 8.5%
Cost of products sold 3,959.1 - 3,959.1
GROSS MARGIN 1,758.1 - 1,758.1 17.7%
% of sales 30.8% 30.8%
Selling, general &
administrative expenses 1,117.7 - 1,117.7 20.5%
% of sales 19.5% 19.5%
Impairment charges 0.4 (0.4) -
Restructuring costs 72.6 (51.2) 21.4
OPERATING INCOME 567.4 51.6 619.0 16.8%
% of sales 9.9% 10.8%
Nonoperating expenses:
Interest expense, net 127.1 - 127.1
Other expense/(income) (23.1) - (23.1)
104.0 - 104.0 36.3%
INCOME BEFORE INCOME TAXES 463.4 51.6 515.0 12.9%
% of sales 8.1% 9.0%
Income taxes 57.1 18.7 75.8 (17.7)%
Effective rate 12.3% 14.7%
INCOME FROM CONTINUING OPERATIONS 406.3 32.9 439.2 18.1%
% of sales 7.1% 7.7%
Discontinued operations, net of tax:
Net loss (155.0) 155.0 -
NET INCOME $251.3 $187.9 $439.2 18.1%
% of sales 4.4% 7.7%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $1.48 $0.12 $1.60
Diluted $1.48 $0.12 $1.60
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.56) $0.56 $-
Diluted $(0.56) $0.56 $-
EARNINGS PER SHARE:
Basic $0.92 $0.68 $1.60
Diluted $0.91 $0.68 $1.60
Average shares outstanding:
Basic 274.4 274.4
Diluted 274.9 274.9
(1) Charges excluded from "as reported" results for 2006 consist of $66.4
million of Project Acceleration restructuring costs and an $85.7
million net loss related to discontinued operations.
(2) Charges excluded from "as reported" results for 2005 consist of a
$0.4 million impairment charge, $51.2 million of Project Acceleration
restructuring costs and a $155.0 million net loss related to
discontinued operations.
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
December 31, December 31,
Assets: 2006 2005
Cash and cash equivalents $201.0 $115.5
Accounts receivable, net 1,113.6 1,107.7
Inventories, net 850.6 793.8
Deferred income taxes 110.1 109.8
Prepaid expenses and other 133.5 103.2
Current assets of discontinued operations 68.1 242.7
Total Current Assets 2,476.9 2,472.7
Property, plant and equipment, net 746.9 854.0
Deferred income taxes 1.3 37.7
Goodwill 2,435.7 2,304.4
Other intangible assets, net 458.8 401.7
Other assets 190.9 185.2
Non-current assets of discontinued operations - 190.4
Total Assets $6,310.5 $6,446.1
Liabilities and Stockholders' Equity:
Accounts payable $549.9 $590.5
Accrued compensation 177.9 142.6
Other accrued liabilities 710.9 677.7
Income taxes payable 144.3 82.6
Notes payable 23.9 4.0
Current portion of long-term debt 253.6 162.8
Current liabilities of discontinued operations 36.1 137.2
Total Current Liabilities 1,896.6 1,797.4
Long-term debt 1,972.3 2,429.7
Other non-current liabilities 551.4 566.6
Long-term liabilities of discontinued
operations - 9.2
Stockholders' Equity 1,890.2 1,643.2
Total Liabilities and
Stockholders' Equity $6,310.5 $6,446.1
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
For The Twelve Months Ended December 31,
2006 2005
Operating Activities:
Net income $385.0 $251.3
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 193.3 191.6
Impairment charges 50.9 34.4
Non-cash restructuring costs 27.2 56.2
Deferred income taxes (5.0) (63.9)
Gain on sale of assets/debt
extinguishment (4.5) (20.0)
Stock-based compensation expense 33.6 6.1
(Gain)/Loss on disposal of
discontinued operations (0.7) 96.8
Other (12.9) (23.9)
Changes in current accounts,
excluding the effects of acquisitions:
Accounts receivable 25.1 (51.5)
Inventories (32.2) 32.3
Accounts payable (51.0) 27.3
Accrued liabilities and other 4.5 44.6
Discontinued operations 30.1 60.3
Net cash provided by
operating activities $643.4 $641.6
Investing Activities:
Acquisitions, net of cash acquired $(60.6) $(740.0)
Capital expenditures (138.3) (92.2)
Disposals of non-current assets
and sale of businesses 187.0 65.5
Net cash used in investing activities $(11.9) $(766.7)
Financing Activities:
Proceeds from issuance of debt $177.0 $337.0
Payments on notes payable and
long-term debt (511.0) (360.1)
Cash dividends (232.8) (231.5)
Proceeds from exercised stock
options and other 16.7 (2.6)
Net cash used in financing activities $(550.1) $(257.2)
Exchange rate effect on cash and
cash equivalents $4.1 $(7.8)
Increase (Decrease) in cash and
cash equivalents 85.5 (390.1)
Cash and cash equivalents at
beginning of year 115.5 505.6
Cash and cash equivalents at end
of period $201.0 $115.5
Newell Rubbermaid Inc.
Calculation of Free Cash Flow (1)
For The Three Months Ended December 31,
Free Cash Flow (in millions): 2006 2005
Net cash provided by operating
activities $239.1 $190.3
Capital expenditures (44.2) (22.3)
Free Cash Flow $194.9 $168.0
For The Twelve Months Ended December 31,
Free Cash Flow (in millions): 2006 2005
Net cash provided by operating
activities $643.4 $641.6
Capital expenditures (138.3) (92.2)
Free Cash Flow $505.1 $549.4
(1) Free Cash Flow is defined as cash flow provided by operating
activities less capital expenditures.
Newell Rubbermaid Inc.
Financial Worksheet
In Millions
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q1:
Cleaning, Organization & Decor $449.7 $38.4 $- $38.4 8.5%
Office Products 390.8 32.3 - 32.3 8.3%
Tools & Hardware 276.8 33.1 - 33.1 12.0%
Other 225.3 32.7 - 32.7 14.5%
Impairment Charge - - -
Restructuring Costs (9.1) 9.1 -
Corporate (17.6) - (17.6)
Total $1,342.6 $109.8 $9.1 $118.9 8.9%
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q2:
Cleaning, Organization & Decor $509.9 $57.3 $- $57.3 11.2%
Office Products 579.1 99.9 - 99.9 17.3%
Tools & Hardware 328.8 53.8 - 53.8 16.4%
Other 216.3 29.8 - 29.8 13.8%
Impairment Charge - - -
Restructuring Costs (19.1) 19.1 -
Corporate (20.0) - (20.0)
Total $1,634.1 $201.7 $19.1 $220.8 13.5%
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q3:
Cleaning, Organization & Decor $519.3 $67.8 $- $67.8 13.1%
Office Products 517.5 75.7 - 75.7 14.6%
Tools & Hardware 324.4 46.2 - 46.2 14.2%
Other 224.9 28.9 - 28.9 12.9%
Impairment Charge - -
Restructuring Costs (22.1) 22.1 -
Corporate (18.3) - (18.3)
Total $1,586.1 $178.2 $22.1 $200.3 12.6%
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q4:
Cleaning, Organization & Decor $516.8 $45.6 $- $45.6 8.8%
Office Products 544.2 79.1 - 79.1 14.5%
Tools & Hardware 332.2 51.9 - 51.9 15.6%
Other 245.0 26.5 - 26.5 10.8%
Impairment Charge - - -
Restructuring Costs (16.1) 16.1 -
Corporate (20.1) - (20.1)
Total $1,638.2 $166.9 $16.1 $183.0 11.2%
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
YTD:
Cleaning, Organization & Decor $1,995.7 $209.1 $- $209.1 10.5%
Office Products 2,031.6 287.0 - 287.0 14.1%
Tools & Hardware 1,262.2 185.0 - 185.0 14.7%
Other 911.5 117.9 - 117.9 12.9%
Impairment Charge - - -
Restructuring Costs (66.4) 66.4 -
Corporate (76.0) - (76.0)
Total $6,201.0 $656.6 $66.4 $723.0 11.7%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q1:
Cleaning, Organization & Decor $398.0 $14.8 $- $14.8 3.7%
Office Products 332.8 33.5 - 33.5 10.1%
Tools & Hardware 276.4 26.7 - 26.7 9.7%
Other 196.5 17.0 - 17.0 8.7%
Impairment Charge - -
Restructuring Costs (6.5) - (6.5)
Corporate (9.5) - (9.5)
Total $1,203.7 $76.0 $- $76.0 6.3%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q2:
Cleaning, Organization & Decor $480.1 $31.1 $- $31.1 6.5%
Office Products 495.5 98.9 - 98.9 20.0%
Tools & Hardware 315.5 49.3 - 49.3 15.6%
Other 202.8 26.0 - 26.0 12.8%
Impairment Charge (31.4) 31.4 -
Restructuring Costs (0.3) - (0.3)
Corporate (9.7) - (9.7)
Total $1,493.9 $163.9 $31.4 $195.3 13.1%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q3:
Cleaning, Organization & Decor $490.9 $67.9 $- $67.9 13.8%
Office Products 427.8 59.9 - 59.9 14.0%
Tools & Hardware 318.9 46.3 - 46.3 14.5%
Other 199.0 25.4 - 25.4 12.8%
Impairment Charge 25.2 (25.2) -
Restructuring Costs (14.6) - (14.6)
Corporate (10.1) - (10.1)
Total $1,436.6 $200.0 $(25.2) $174.8 12.2%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
Q4:
Cleaning, Organization & Decor $552.0 $32.0 $- $32.0 5.8%
Office Products 457.2 73.7 - 73.7 16.1%
Tools & Hardware 349.5 48.8 - 48.8 14.0%
Other 224.3 35.1 - 35.1 15.6%
Impairment Charge 5.8 (5.8) -
Restructuring Costs (51.2) 51.2 -
Corporate (16.7) - (16.7)
Total $1,583.0 $127.5 $45.4 $172.9 10.9%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Reported Excl. Charges ting
Net Sales OI Charges OI Margin
YTD:
Cleaning, Organization & Decor $1,921.0 $145.8 $- $145.8 7.6%
Office Products 1,713.3 266.0 - 266.0 15.5%
Tools & Hardware 1,260.3 171.1 - 171.1 13.6%
Other 822.6 103.5 - 103.5 12.6%
Impairment Charge (0.4) 0.4 -
Restructuring Costs (72.6) 51.2 (21.4)
Corporate (46.0) - (46.0)
Total $5,717.2 $567.4 $51.6 $619.0 10.8%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q1:
Cleaning, Organization & Decor $51.7 13.0% $23.6 159.5%
Office Products 58.0 17.4% (1.2) (3.6)%
Tools & Hardware 0.4 0.1% 6.4 24.0%
Other 28.8 14.7% 15.7 92.4%
Impairment Charge -
Restructuring Costs 6.5
Corporate (8.1) 85.3%
Total $138.9 11.5% $42.9 56.4%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q2:
Cleaning, Organization & Decor $29.8 6.2% $26.2 84.2%
Office Products 83.6 16.9% 1.0 1.0%
Tools & Hardware 13.3 4.2% 4.5 9.1%
Other 13.5 6.7% 3.8 14.6%
Impairment Charge -
Restructuring Costs 0.3
Corporate (10.3) 106.2%
Total $140.2 9.4% $25.5 13.1%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q3:
Cleaning, Organization & Decor $28.4 5.8% $(0.1) (0.1)%
Office Products 89.7 21.0% 15.8 26.4%
Tools & Hardware 5.5 1.7% (0.1) (0.2)%
Other 25.9 13.0% 3.5 13.8%
Impairment Charge -
Restructuring Costs 14.6
Corporate (8.2) 81.2%
Total $149.5 10.4% $25.5 14.6%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q4:
Cleaning, Organization & Decor $(35.2) (6.4)% $13.6 42.5%
Office Products 87.0 19.0% 5.4 7.3%
Tools & Hardware (17.3) (4.9)% 3.1 6.4%
Other 20.7 9.2% (8.6) (24.5)%
Impairment Charge -
Restructuring Costs -
Corporate (3.4) 20.4%
Total $55.2 3.5% $10.1 5.8%
Year-over-year changes
Net Sales Operating Income
$ % $ %
YTD:
Cleaning, Organization & Decor $74.7 3.9% $63.3 43.4%
Office Products 318.3 18.6% 21.0 7.9%
Tools & Hardware 1.9 0.2% 13.9 8.1%
Other 88.9 10.8% 14.4 13.9%
Impairment Charge -
Restructuring Costs 21.4
Corporate (30.0) 65.2%
Total $483.8 8.5% $104.0 16.8%
(1) Charges are primarily related to restructuring and impairment.
Newell Rubbermaid Inc.
Three Months Ended December 31, 2006
In Millions
Currency Analysis
By Segment 2006 2005
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning, Organization & Decor $516.8 $(2.9) $513.9 $552.0
Office Products 544.2 (13.1) 531.1 457.2
Tools & Hardware 332.2 (4.8) 327.4 349.5
Other 245.0 (3.1) 241.9 224.3
Total Company $1,638.2 $(23.9) $1,614.3 $1,583.0
By Geography
United States $1,188.2 $- $1,188.2 $1,208.3
Canada 100.6 (3.3) 97.3 97.0
North America 1,288.8 (3.3) 1,285.5 1,305.3
Europe 223.4 (18.8) 204.6 165.7
Central & South America 68.7 (0.1) 68.6 63.7
All Other 57.3 (1.7) 55.6 48.3
Total Company $1,638.2 $(23.9) $1,614.3 $1,583.0
By Segment Year-over-year
Increase (Decrease)
Excluding Including Currency
Currency Currency Impact
Cleaning, Organization & Decor (6.9)% (6.4)% 0.5%
Office Products 16.2% 19.0% 2.9%
Tools & Hardware (6.3)% (4.9)% 1.4%
Other 7.8% 9.2% 1.4%
Total Company 2.0% 3.5% 1.5%
By Geography
United States (1.7)% (1.7)% 0.0%
Canada 0.3% 3.7% 3.4%
North America (1.5)% (1.3)% 0.3%
Europe 23.5% 34.8% 11.3%
Central & South America 7.7% 7.8% 0.2%
All Other 15.1% 18.6% 3.5%
Total Company 2.0% 3.5% 1.5%
Newell Rubbermaid Inc.
Twelve Months Ended December 31, 2006
In Millions
Currency Analysis
By Segment 2006 2005
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning, Organization & Decor $1,995.7 $(14.8) $1,980.9 $1,921.0
Office Products 2,031.6 (13.3) 2,018.3 1,713.3
Tools & Hardware 1,262.2 (9.4) 1,252.8 1,260.3
Other 911.5 (3.1) 908.4 822.6
Total Company $6,201.0 $(40.6) $6,160.4 $5,717.2
By Geography
United States $4,603.4 $- $4,603.4 $4,338.5
Canada 387.9 (26.7) 361.2 352.2
North America 4,991.3 (26.7) 4,964.6 4,690.7
Europe 781.0 (11.2) 769.8 639.8
Central & South America 239.3 (3.4) 235.9 224.8
All Other 189.4 0.7 190.1 161.9
Total Company $6,201.0 $(40.6) $6,160.4 $5,717.2
By Segment Year-over-year
Increase (Decrease)
Excluding Including Currency
Currency Currency Impact
Cleaning, Organization & Decor 3.1% 3.9% 0.8%
Office Products 17.8% 18.6% 0.8%
Tools & Hardware (0.6)% 0.2% 0.7%
Other 10.4% 10.8% 0.4%
Total Company 7.8% 8.5% 0.7%
By Geography
United States 6.1% 6.1% 0.0%
Canada 2.6% 10.1% 7.6%
North America 5.8% 6.4% 0.6%
Europe 20.3% 22.1% 1.8%
Central & South America 4.9% 6.5% 1.5%
All Other 17.4% 17.0% (0.4)%
Total Company 7.8% 8.5% 0.7%
SOURCE Newell Rubbermaid Inc.
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http://www.newellrubbermaid.com
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CONTACT:
Ron Hardnock, Vice President, Investor
Relations, or Esther Lippman, Senior Manager, Public Relations,
of Newell Rubbermaid Inc., +1-770-407-3994, or fax
+1-770-407-3983
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