ATLANTA, Sept. 22 /PRNewswire-FirstCall/ -- Newell Rubbermaid (NYSE: NWL)
today will host its analyst day at the Equitable Center, located at 787
Seventh Ave., New York, N.Y. beginning at 9am EDT. Chief Executive Officer
Joseph Galli, Chief Financial Officer Patrick Robinson and other executives
will update the investment community on the company's strategy, its recently
announced Project Acceleration initiative and innovative new products that
will drive long-term sustainable growth. The company will also address its
long-term financial targets including top-line sales growth of 3% to 5% and
diluted earnings per share outlook, excluding restructuring charges, of $1.75
to $1.85 in 2007 and $2.00 to $2.20 in 2008.
"Focusing on developing innovative new products will help us continue to
transform the company. Our investment in our strong portfolio of powerful
brands will help us deliver on long-term sustainable growth as we continue to
meet the needs of the consumer," said Joe Galli, chief executive officer,
Newell Rubbermaid, Inc.
The company recently announced Project Acceleration, a three-year global
initiative to fuel sustainable growth in sales, earnings and cash flow through
increased investment in new product development, brand building and marketing,
a reduction of manufacturing overhead and strengthening the company's
portfolio of businesses.
"Project Acceleration provides us with a roadmap to grow our business by
making additional investments in consumer marketing, research and development
and global expansion," said Pat Robinson, chief financial officer. "By
reducing manufacturing overhead and driving operational excellence, we are
creating a solid foundation for the future." Pat Robinson's discussion will
focus on the financial outlook for fiscal years 2005 thru 2008.
2005 Outlook
The company expects diluted earnings per share from continuing operations
for the full year 2005 to be in the range of $1.43 to $1.48. This range
excludes a non-cash impairment charge of approximately $35 million ($0.13 per
share), related to the United Kingdom business in the company's Home Fashions
segment. This outlook also does not include total net losses reported as
discontinued operations, expected to be approximately $90 million. The
company continues to expect internal sales to decline in the range of 1% to 3%
for the full year 2005, primarily reflecting the company's strategic decision
to exit $200 million in annual revenue of low-margin product lines and the
volume impact related to its pricing strategy.
For the third quarter 2005, the company expects diluted earnings per share
from continuing operations to be in the range of $0.33 to $0.37. This range
excludes a non-cash impairment charge of approximately $35 million ($0.13 per
share), related to the United Kingdom business in the company's Home Fashions
segment. The company continues to expect internal sales to decline 0% to 2%.
A reconciliation of the 2005 earnings outlook is as follows:
Full Year Third Quarter
Diluted earnings per share
from continuing
operations (as reported): $1.30 - $1.35 $0.20 - $0.24
Impairment charges $0.13 $0.13
Diluted earnings per share
from continuing operations
(excluding charges): $1.43 - $1.48 $0.33 - $0.37
For the full year 2005, the company continues to expect net cash from
operating activities to be in the range of $625 to $675 million. Expenditures
for property, plant and equipment are expected to be in the range of $125 to
$150 million and dividends are expected to be approximately $230 million for
the full year 2005.
2006 thru 2008 Outlook
For the full year 2006, the company expects diluted earnings per share
from continuing operations to be in the range of $1.50 to $1.60. This outlook
includes the impact of the DYMO acquisition and does not include approximately
$220 to $250 million ($185 to $210 million after tax) of restructuring charges
expected to be incurred in 2006. For the full year 2006, the company expects
diluted earnings per share from continuing operations, on a GAAP basis, to be
in the range of $0.77 to $0.87.
For the full year 2007, the company expects diluted earnings per share
from continuing operations to be in the range of $1.75 to $1.85. This outlook
does not include approximately $50 to $100 million ($40 to $85 million after
tax) of restructuring charges expected to be incurred in 2007.
For the full year 2008, the company expects diluted earnings per share
from continuing operations to be in the range of $2.00 to $2.20. This outlook
does not include approximately $50 to $100 million ($40 to $85 million after
tax) of restructuring charges expected to be incurred in 2008.
A reconciliation of the 2006 thru 2008 earnings outlook is as follows:
Full Year 2006 2007 2008
Diluted earnings per
share from continuing
operations (as reported): $0.77 - $0.87 $1.52 - $1.62 $1.77 - $1.97
Restructuring charges $0.68 - $0.77 $0.15 - $0.31 $0.15 - $0.31
Diluted earnings per
share from continuing
operations
(excluding charges): $1.50 - $1.60 $1.75 - $1.85 $2.00 - $2.20
For the full year 2006, the company expects internal sales growth of -1 %
to 1%, highlighted by internal sales growth from its leadership platforms of
2% to 4%. The company expects cash from operations to be in the range of $550
to $600 million, reflecting a use of approximately $100 million of
restructuring cash, related to Project Acceleration. Expenditures for
property, plant and equipment are expected to be in the range of $125 to $150
million and dividends are expected to be approximately $230 million for the
full year 2006.
Webcast
A webcast of the event can be accessed by following the link
https://cis.premconf.com/sc/scw.dll/usr?cid=vlllrsdsrxsvwswdz. A replay of
the webcast will be available on the investor relations section of the
company's website at http://www.newellrubbermaid.com until October 28, 2005.
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, internal sales, income/(loss), earnings per share, operating
income or gross margin improvements, capital and other expenditures, cash
flow, dividends, restructuring, impairment and other charges, potential losses
on divestiture, costs and cost savings and the value thereof, 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," "enable," "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 in various parts of the world; competition with numerous other
manufacturers and distributors of consumer products; major retailers' strong
bargaining power; changes in the prices of raw materials used by the company;
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 in the face of foreign regulations and other impediments;
our ability to implement successfully information technology solutions
throughout our organization; our ability to improve productivity and
streamline operations; our ability to complete strategic acquisitions
(including DYMO); our ability to integrate previously acquired businesses; the
risks inherent in our foreign operations and those factors listed in the
company's 2005 second quarter 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 2004 sales of $6.5 billion and a powerful brand family including
Sharpie(R), Paper Mate(R), Waterman(R), EXPO(R), Rubbermaid(R), Calphalon(R),
Graco(R), Goody(R), BernzOmatic(R), IRWIN(R) and LENOX(R). The company is
headquartered in Atlanta, Ga., and has over 31,000 employees worldwide.
This press release and additional financial information about the company
are available on the company's website at http://www.newellrubbermaid.com.
SOURCE Newell Rubbermaid
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Related links:
http://www.newellrubbermaid.com
Company News On-Call:
http://www.prnewswire.com/comp/765613.html
CONTACT:
Jesse Herron, Vice President, Investor
Relations, or Nancy de Jonge Davis, Vice President, Corporate
Communications, or Cari Davidson, Manager, Public Relations, all
of Newell Rubbermaid Inc., +1-770-407-3994, Fax: +1-770-407-3983
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