-- Sales growth of 6.4% and gross margin expansion of 190 basis points
-- Raises full year EPS & cash flow guidance
-- Guides full year gross margin expansion to the high-end of the range
-- Successful implementation of SAP at North American Office Products
ATLANTA, Oct. 25 /PRNewswire-FirstCall/ -- Newell Rubbermaid Inc.
(NYSE: NWL) today reported third quarter 2007 results, reflecting sales
growth, gross margin expansion and improvement in operating income. In
addition, management raised its full year earnings per share and cash flow
guidance and guided full year gross margin expansion to the high-end of the
range.
"We are pleased to report that we have delivered another quality
quarter, generating an attractive balance of internal sales growth, gross
margin expansion, EPS growth and cash generation," said Mark Ketchum,
president and chief executive officer of Newell Rubbermaid. "Our 2007
results demonstrate that the strategies are working and serve as a
validation of our business model. We remain on track to meet or exceed all
performance commitments established at the beginning of the year."
Successful Implementation of SAP
During the quarter, the North American Office Products business
successfully implemented SAP. This SAP go-live marks the completion of the
first major milestone aimed at migrating non-standard legacy systems and
users to a common SAP platform. This multi-year program will enable the
Company to integrate and manage its worldwide business and reporting
process more efficiently.
Quarterly Financial Highlights
Net sales for the third quarter ended September 30, 2007 rose 6.4
percent to $1.69 billion, compared to $1.59 billion in the prior year. This
marks the eighth consecutive quarter of internal sales growth for the
company. Sales growth, excluding foreign currency, was 4.5 percent. The
sales growth was driven by broad based strength across all segments and
benefited by approximately 150 basis points from the timing of sales in the
Office Products segment relating to the third quarter pre-buy in advance of
the SAP implementation and the recovery of lost second quarter sales
associated with service level issues in Europe.
Gross margin for the third quarter 2007 improved to 35.6 percent, a 190
basis point improvement over the prior year, exceeding the high end of the
company's revised guidance. The expansion was driven primarily by favorable
mix and productivity improvements, including the impact of Project
Acceleration.
Excluding Project Acceleration restructuring costs of $22.7 million in
2007 and $22.1 million in 2006, operating income improved $36.2 million to
$236.5 million, an 18 percent increase over the prior year.
Income from continuing operations, as reported, was $169.9 million, or
$0.61 per diluted share, for the third quarter 2007, compared to $112.7
million, or $0.41 per diluted share, in the prior year.
Excluding Project Acceleration restructuring costs, income from
continuing operations was $185.0 million, or $0.66 per diluted share, for
the third quarter 2007, compared to the prior year's result of $128.4
million, or $0.46 per diluted share. Income from continuing operations in
the third quarter 2007 included a one-time tax benefit of $39.4 million, or
$0.14 per diluted share, versus $0.05 per diluted share in the prior year.
A reconciliation of the results "as reported" to results "excluding
charges" is attached to this press release.
Normalized earnings, which exclude Project Acceleration restructuring
costs and one-time tax items, were $0.52 per diluted share in the third
quarter 2007, a 27 percent increase over the prior year's result of $0.41
per diluted share.
Net cash provided by operating activities was $283.4 million in the
third quarter 2007, compared to $312.2 million in the prior year. Capital
expenditures were $41.0 million, versus $36.9 million in the prior year.
The company returned $58.7 million to shareholders through cash
dividends in the quarter, bringing the year-to-date total up to $176.0
million.
A reconciliation of the third quarter 2007 and last year's results is
as follows:
Q3 2007 Q3 2006
Diluted earnings per share from
continuing operations (as reported): $0.61 $0.41
Project Acceleration restructuring
costs $0.05 $0.05
Diluted earnings per share from
continuing operations (excluding
charges): $0.66 $0.46
Tax benefits ($0.14) ($0.05)
"Normalized" EPS: $0.52 $0.41
Year-to-Date Financial Highlights
Net sales for the nine months ended September 30, 2007 grew 4.4 percent
to $4.76 billion, compared to $4.56 billion in the prior year. Sales
growth, excluding foreign currency, was 2.8 percent. The sales growth was
driven by strength across all segments, led by market share gains in the
Home & Family and Rubbermaid Commercial businesses and global growth in the
Irwin and Lenox branded tools businesses.
Gross margin was 35.3 percent, a 180 basis point improvement over the
prior year. The expansion reflects core sales growth, strong productivity,
including savings from Project Acceleration, and favorable mix.
Excluding Project Acceleration restructuring costs of $53.7 million in
2007 and $50.3 million in 2006, operating income improved $81.1 million to
$621.1 million, a 15 percent increase over the prior year.
Income from continuing operations, as reported, was $378.2 million, or
$1.36 per diluted share, compared to $378.4 million, or $1.37 per diluted
share, in the prior year.
Excluding Project Acceleration restructuring costs, income from
continuing operations was $417.6 million, or $1.50 per diluted share,
compared to the prior year's result of $414.7 million, or $1.50 per diluted
share. Income from continuing operations in 2007 included one-time tax
benefits of $41.3 million, or $0.15 per diluted share, versus $0.41 per
diluted share in the prior year. A reconciliation of the results "as
reported" to results "excluding charges" is attached to this press release.
Normalized earnings, which exclude Project Acceleration restructuring
costs and one-time tax items, were $1.35 per diluted share, a 24 percent
increase over the prior year's result of $1.09 per diluted share.
Net cash provided by operating activities was $456.2 million, compared
to $404.3 million for the prior year. Capital expenditures were $110.0
million, compared to $94.1 million for the prior year.
A reconciliation of the first nine months 2007 and last year's results
is as follows:
Q3 YTD 2007 Q3 YTD 2006
Diluted earnings per share from
continuing operations (as reported): $1.36 $1.37
Project Acceleration restructuring
costs $0.14 $0.13
Diluted earnings per share from
continuing operations (excluding
charges): $1.50 $1.50
Tax benefits ($0.15) ($0.41)
"Normalized" EPS: $1.35 $1.09
2007 Full Year Guidance
The company continues to expect sales growth of approximately 4 percent
with growth in all four business segments, including approximately 150
basis points of favorable currency.
The company now projects gross margin expansion of 175 to 200 basis
points. Project Acceleration savings and ongoing productivity initiatives,
combined with favorable mix, will drive the gross margin expansion.
Normalized earnings are expected to range from $1.79 to $1.81 per
diluted share.
Net cash provided by operating activities is now forecast between $650
and $700 million, including approximately $50 to $60 million in cash
restructuring payments. The company continues to project annualized savings
in excess of $150 million from Project Acceleration upon completion in
2009, now including $60 million of savings in 2007. The company now expects
capital expenditures of $145 to $155 million, including SAP, and dividends
of approximately $235 million.
Fourth Quarter Guidance
The company believes sales will increase approximately 2 percent. Sales
in the quarter will be negatively impacted by approximately 100 basis
points as certain retailers purchased product in advance of the SAP go-live
at North American Office Products.
Savings from Project Acceleration activities along with other ongoing
productivity initiatives and favorable mix will drive expected gross margin
expansion of between 175 and 225 basis points.
Normalized earnings are expected to range from $0.44 to $0.46 per
diluted share.
Net cash provided by operating activities is forecast in the range of
$200 to $250 million. The company expects capital expenditures of $35 to
$45 million.
2008 Outlook
The company expects sales growth of 3 to 5 percent for the full year
with growth expected across all business segments. New products and
increased strategic SG&A spending are expected to more than offset the
impact of a continued sluggish economic environment in North America.
Project Acceleration, and other productivity initiatives, are expected to
fuel gross margin expansion in excess of 100 basis points. Approximately
half of this expansion will be invested in strategic brand building and
corporate initiatives. Sales growth and gross margin expansion will drive
normalized EPS to a range of $1.95 to $2.00.
"2008 continues to build upon the positive momentum experienced in
2007," said Mark Ketchum, president and chief executive officer of Newell
Rubbermaid. "We continue to make the necessary investments in consumer
understanding, innovation and demand creation activities aimed at
positioning Newell Rubbermaid for long-term success. We are proud of the
progress we've made thus far and excited about the improvements that are
yet to come."
A reconciliation of the 2007 and 2008 earnings outlook is as follows:
Q4 2007 FY 2007 FY 2008
Diluted earnings per
share from continuing
operations (as reported): $0.35 - $0.37 $1.69 - $1.71 $1.53 - $1.58
Project Acceleration
restructuring costs $0.06 - $0.12 $0.22 - $0.28 $0.38 - $0.47
Diluted earnings per
share from continuing
operations
(excluding charges): $0.44 - $0.46 $1.94 - $1.96 $1.95 - $2.00
Tax benefits $0.00 ($0.15) $0.00
"Normalized" EPS: $0.44 - $0.46 $1.79 - $1.81 $1.95 - $2.00
Conference Call
The company's third quarter 2007 earnings conference call is scheduled
for today, October 25, 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.
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, and Exhibit 99.1 thereto, filed with
the Securities and Exchange Commission. Changes in such assumptions or
factors could produce significantly different results. The information
contained in this news release is as of the date indicated. The company
assumes no obligation to update any forward-looking statements contained in
this news release as a result of new information or future events or
developments.
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 Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of
consumer and commercial products that touch the lives of people where they
work, live and play. The company's strong portfolio of brands includes
Sharpie(R), Paper Mate(R), DYMO(R), EXPO(R), Waterman(R), Parker(R),
Rolodex(R), IRWIN(R), LENOX(R), BernzOmatic(R), Rubbermaid(R), Levolor(R),
Graco(R), Calphalon(R) and Goody(R). The company, with sales of
approximately $6 billion, is headquartered in Atlanta, Ga., and employs
approximately 22,500 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
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 September 30, 2007
As Reported Charges(1) Excl. Charges
Net sales $1,687.3 $- $1,687.3
Cost of products sold 1,086.3 - 1,086.3
GROSS MARGIN 601.0 - 601.0
% of sales 35.6% 35.6%
Selling, general &
administrative expenses 364.5 - 364.5
% of sales 21.6% 21.6%
Restructuring costs 22.7 (22.7) -
OPERATING INCOME 213.8 22.7 236.5
% of sales 12.7% 14.0%
Nonoperating expenses:
Interest expense, net 28.0 - 28.0
Other expense 2.1 - 2.1
30.1 - 30.1
INCOME BEFORE INCOME TAXES 183.7 22.7 206.4
% of sales 10.9% 12.2%
Income taxes 13.8 7.6 21.4
Effective rate 7.5% 10.4%
INCOME FROM CONTINUING
OPERATIONS 169.9 15.1 185.0
% of sales 10.1% 11.0%
Discontinued operations, net of tax:
Net gain/(loss) 0.3 (0.3) -
NET INCOME $170.2 $14.8 $185.0
% of sales 10.1% 11.0%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.62 $0.05 $0.67
Diluted $0.61 $0.05 $0.66
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $0.00 $(0.00) $-
Diluted $0.00 $(0.00) $-
EARNINGS PER SHARE:
Basic $0.62 $0.05 $0.67
Diluted $0.61 $0.05 $0.66
Average shares outstanding:
Basic 276.0 276.0
Diluted 286.1 286.1
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 September 30, 2006
As Charges Excl. YOY
Reported (2) Charges % Change
Net sales $1,586.1 $- $1,586.1 6.4%
Cost of products sold 1,050.9 - 1,050.9
GROSS MARGIN 535.2 - 535.2 12.3%
% of sales 33.7% 33.7%
Selling, general &
administrative expenses 334.9 - 334.9 8.8%
% of sales 21.1% 21.1%
Restructuring costs 22.1 (22.1) -
OPERATING INCOME 178.2 22.1 200.3 18.1%
% of sales 11.2% 12.6%
Nonoperating expenses:
Interest expense, net 32.9 - 32.9
Other expense 3.4 - 3.4
36.3 - 36.3 (17.1)%
INCOME BEFORE INCOME TAXES 141.9 22.1 164.0 25.9%
% of sales 8.9% 10.3%
Income taxes 29.2 6.4 35.6 (39.9)%
Effective rate 20.6% 21.7%
INCOME FROM CONTINUING
OPERATIONS 112.7 15.7 128.4 44.1%
% of sales 7.1% 8.1%
Discontinued operations, net of tax:
Net gain/(loss) (4.2) 4.2 -
NET INCOME $108.5 $19.9 $128.4 44.1%
% of sales 6.8% 8.1%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.41 $0.06 $0.47
Diluted $0.41 $0.06 $0.46
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.02) $0.02 $-
Diluted $(0.02) $0.02 $-
EARNINGS PER SHARE:
Basic $0.39 $0.07 $0.47
Diluted $0.39 $0.07 $0.46
Average shares outstanding:
Basic 274.6 274.6
Diluted 275.6 283.9
(1) Charges excluded from "as reported" results for 2007 consist of $22.7
million of Project Acceleration restructuring costs and a $0.3 million net
gain related to discontinued operations.
(2) Charges excluded from "as reported" results for 2006 consist of $22.1
million of Project Acceleration restructuring costs and a $4.2 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"
Nine Months Ended September 30, 2007
As Reported Charges(1) Excl. Charges
Net sales $4,764.8 $- $4,764.8
Cost of products sold 3,083.5 - 3,083.5
GROSS MARGIN 1,681.3 - 1,681.3
% of sales 35.3% 35.3%
Selling, general &
administrative expenses 1,060.2 - 1,060.2
% of sales 22.3% 22.3%
Restructuring costs 53.7 (53.7) -
OPERATING INCOME 567.4 53.7 621.1
% of sales 11.9% 13.0%
Nonoperating expenses:
Interest expense, net 82.9 - 82.9
Other expense 4.4 - 4.4
87.3 - 87.3
INCOME BEFORE INCOME TAXES 480.1 53.7 533.8
% of sales 10.1% 11.2%
Income taxes 101.9 14.3 116.2
Effective rate 21.2% 21.8%
INCOME FROM CONTINUING
OPERATIONS 378.2 39.4 417.6
% of sales 7.9% 8.8%
Discontinued operations, net of tax:
Net loss (16.5) 16.5 -
NET INCOME $361.7 $55.9 $417.6
% of sales 7.6% 8.8%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $1.37 $0.14 $1.51
Diluted $1.36 $0.14 $1.50
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.06) $0.06 $-
Diluted $(0.06) $0.06 $-
EARNINGS PER SHARE:
Basic $1.31 $0.20 $1.51
Diluted $1.30 $0.20 $1.50
Average shares outstanding:
Basic 276.0 276.0
Diluted 286.1 286.1
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Reconciliation of Results "As Reported" to Results
"Excluding Charges"
Nine Months Ended September 30, 2006
As Charges Excl. YOY
Reported (2) Charges % Change
Net sales $4,562.8 $- $4,562.8 4.4%
Cost of products sold 3,032.5 - 3,032.5
GROSS MARGIN 1,530.3 - 1,530.3 9.9%
% of sales 33.5% 33.5%
Selling, general &
administrative expenses 990.3 - 990.3 7.1%
% of sales 21.7% 21.7%
Restructuring costs 50.3 (50.3) -
OPERATING INCOME 489.7 50.3 540.0 15.0%
% of sales 10.7% 11.8%
Nonoperating expenses:
Interest expense, net 102.2 - 102.2
Other expense 7.7 - 7.7
109.9 - 109.9 (20.6)%
INCOME BEFORE INCOME TAXES 379.8 50.3 430.1 24.1%
% of sales 8.3% 9.4%
Income taxes 1.4 14.0 15.4 653.1%
Effective rate 0.4% 3.6%
INCOME FROM CONTINUING
OPERATIONS 378.4 36.3 414.7 0.7%
% of sales 8.3% 9.1%
Discontinued operations, net of tax:
Net loss (95.6) 95.6 -
NET INCOME $282.8 $131.9 $414.7 0.7%
% of sales 6.2% 9.1%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $1.38 $0.13 $1.51
Diluted $1.37 $0.13 $1.50
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.35) $0.35 $-
Diluted $(0.34) $0.34 $-
EARNINGS PER SHARE:
Basic $1.03 $0.48 $1.51
Diluted $1.03 $0.47 $1.50
Average shares outstanding:
Basic 274.6 274.6
Diluted 283.6 283.6
(1) Charges excluded from "as reported" results for 2007 consist of $53.7
million of Project Acceleration restructuring costs and a $16.5 million
net loss related to discontinued operations.
(2) Charges excluded from "as reported" results for 2006 consist of $50.3
million of Project Acceleration restructuring costs and a $95.6 million
net loss related to discontinued operations.
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
September 30, September 30,
Assets: 2007 2006
Cash and cash equivalents $169.5 $137.4
Accounts receivable, net 1,127.1 1,079.5
Inventories, net 1,000.1 946.0
Deferred income taxes 104.2 117.4
Prepaid expenses and other 169.1 136.2
Current assets of discontinued
operations - 287.7
Total Current Assets 2,570.0 2,704.2
Property, plant and equipment, net 697.4 763.6
Goodwill 2,585.8 2,412.1
Other intangible assets, net 499.4 437.9
Other assets 238.4 195.3
Total Assets $6,591.0 $6,513.1
Liabilities and Stockholders' Equity:
Accounts payable $619.2 $605.4
Accrued compensation 157.6 155.0
Other accrued liabilities 724.7 661.0
Income taxes payable 2.1 68.9
Notes payable 20.5 21.5
Current portion of long-term debt 775.2 405.9
Current liabilities of discontinued
operations - 129.8
Total Current Liabilities 2,299.3 2,047.5
Long-term debt 1,331.8 2,028.8
Other non-current liabilities 796.3 614.7
Stockholders' Equity 2,163.6 1,822.1
Total Liabilities and
Stockholders' Equity $6,591.0 $6,513.1
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
For The Nine Months Ended
September 30,
2007 2006
Operating Activities:
Net income $361.7 $282.8
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 134.4 147.1
Deferred income taxes 64.4 18.1
Impairment charges - 50.9
Non-cash restructuring costs 10.1 32.5
Gain on sale of assets (0.8) (5.1)
Stock-based compensation
expense 27.9 24.7
Loss on disposal of
discontinued operations 16.3 11.9
Non-cash income tax benefits (41.3) (115.8)
Other (2.9) (10.0)
Changes in current accounts,
excluding the effects of
acquisitions:
Accounts receivable 23.9 48.7
Inventories (119.1) (135.8)
Accounts payable 59.0 7.5
Accrued liabilities and other (77.4) 31.6
Discontinued operations - 15.2
Net cash provided by operating
activities $456.2 $404.3
Investing Activities:
Acquisitions, net of cash acquired $(101.5) $(42.4)
Capital expenditures (110.0) (94.1)
Disposals of non-current assets
and sale of businesses (3.1) 48.3
Net cash used in investing
activities $(214.6) $(88.2)
Financing Activities:
Proceeds from issuance of debt $354.9 $170.3
Payments on notes payable and
long-term debt (474.3) (300.6)
Cash dividends (176.0) (174.6)
Proceeds from exercised stock
options and other 18.0 8.9
Net cash used in financing
activities $(277.4) $(296.0)
Currency rate effect on cash and
cash equivalents $4.3 $1.8
(Decrease)/Increase in cash and
cash equivalents $(31.5) $21.9
Cash and cash equivalents at
beginning of year 201.0 115.5
Cash and cash equivalents at end
of period $169.5 $137.4
Newell Rubbermaid Inc.
Calculation of Free Cash Flow (1)
For The Three Months Ended
September 30,
Free Cash Flow (in millions): 2007 2006
Net cash provided by operating
activities $283.4 $312.2
Capital expenditures (41.0) (36.9)
Free Cash Flow $242.4 $275.3
For The Nine Months Ended
September 30,
Free Cash Flow (in millions): 2007 2006
Net cash provided by operating
activities $456.2 $404.3
Capital expenditures (110.0) (94.1)
Free Cash Flow $346.2 $310.2
(1) Free Cash Flow is defined as cash flow provided by operating
activities less capital expenditures.
Newell Rubbermaid Inc.
Financial Worksheets
In Millions
2007
Excluding Charges Reconciliation (1)
Ex Oper-
Net Reported Excluded Charges ating
Sales OI Charges OI Margin
Q1:
Cleaning, Organization & Decor $457.4 $57.2 $- $57.2 12.5%
Office Products 406.3 35.2 - 35.2 8.7%
Tools & Hardware 293.9 34.2 - 34.2 11.6%
Home & Family 226.8 30.4 - 30.4 13.4%
Restructuring Costs (15.5) 15.5 -
Corporate (20.7) - (20.7)
Total $1,384.4 $120.8 $15.5 $136.3 9.8%
2007
Excluding Charges Reconciliation (1)
Ex Oper-
Net Reported Excluded Charges ating
Sales OI Charges OI Margin
Q2:
Cleaning, Organization & Decor $544.4 $81.2 $- $81.2 14.9%
Office Products 587.5 109.0 - 109.0 18.6%
Tools & Hardware 324.6 47.7 - 47.7 14.7%
Home & Family 236.6 31.3 - 31.3 13.2%
Restructuring Costs (15.5) 15.5 -
Corporate (20.9) - (20.9)
Total $1,693.1 $232.8 $15.5 $248.3 14.7%
2007
Excluding Charges Reconciliation (1)
Ex Oper-
Net Reported Excluded Charges ating
Sales OI Charges OI Margin
Q3:
Cleaning, Organization & Decor $547.2 $83.7 $- $83.7 15.3%
Office Products 544.9 84.2 - 84.2 15.5%
Tools & Hardware 335.9 51.3 - 51.3 15.3%
Home & Family 259.3 37.2 - 37.2 14.3%
Restructuring Costs (22.7) 22.7 -
Corporate (19.9) - (19.9)
Total $1,687.3 $213.8 $22.7 $236.5 14.0%
2007
Excluding Charges Reconciliation (1)
Ex Oper-
Net Reported Excluded Charges ating
Sales OI Charges OI Margin
YTD:
Cleaning, Organization & Decor $1,549.0 $222.1 $- $222.1 14.3%
Office Products 1,538.7 228.4 - 228.4 14.8%
Tools & Hardware 954.4 133.2 - 133.2 14.0%
Home & Family 722.7 98.9 - 98.9 13.7%
Restructuring Costs (53.7) 53.7 -
Corporate (61.5) - (61.5)
Total $4,764.8 $567.4 $53.7 $621.1 13.0%
(1) Charges are related to restructuring.
2006
Excluding Charges Reconciliation (1)
Ex Oper-
Net Reported Excluded Charges ating
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%
Home & Family 225.3 32.7 - 32.7 14.5%
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 Oper-
Net Reported Excluded Charges ating
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%
Home & Family 216.3 29.8 - 29.8 13.8%
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 Oper-
Net Reported Excluded Charges ating
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%
Home & Family 224.9 28.9 - 28.9 12.9%
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 Oper-
Net Reported Excluded Charges ating
Sales OI Charges OI Margin
YTD:
Cleaning, Organization & Decor $1,478.9 $163.5 $- $163.5 11.1%
Office Products 1,487.4 207.9 - 207.9 14.0%
Tools & Hardware 930.0 133.1 - 133.1 14.3%
Home & Family 666.5 91.4 - 91.4 13.7%
Restructuring Costs (50.3) 50.3 -
Corporate (55.9) - (55.9)
Total $4,562.8 $489.7 $50.3 $540.0 11.8%
(1) Charges are related to restructuring.
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q1:
Cleaning, Organization & Decor $7.7 1.7% $18.8 49.0%
Office Products 15.5 4.0% 2.9 9.0%
Tools & Hardware 17.1 6.2% 1.1 3.3%
Home & Family 1.5 0.7% (2.3) (7.0)%
Restructuring Costs -
Corporate (3.1)
Total $41.8 3.1% $17.4 14.6%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q2:
Cleaning, Organization & Decor $34.5 6.8% $23.9 41.7%
Office Products 8.4 1.5% 9.1 9.1%
Tools & Hardware (4.2) (1.3)% (6.1) (11.3)%
Home & Family 20.3 9.4% 1.5 5.0%
Restructuring Costs -
Corporate (0.9)
Total $59.0 3.6% $27.5 12.5%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q3:
Cleaning, Organization & Decor $28.0 5.4% $15.9 23.5%
Office Products 27.4 5.3% 8.5 11.2%
Tools & Hardware 11.5 3.5% 5.1 11.0%
Home & Family 34.4 15.3% 8.3 28.7%
Restructuring Costs -
Corporate (1.6)
Total $101.3 6.4% $36.2 18.1%
Year-over-year changes
Net Sales Operating Income
$ % $ %
YTD:
Cleaning, Organization & Decor $70.2 4.7% $58.6 35.8%
Office Products 51.3 3.4% 20.5 9.9%
Tools & Hardware 24.4 2.6% 0.1 0.1%
Home & Family 56.2 8.4% 7.5 8.2%
Restructuring Costs -
Corporate (5.6)
Total $202.1 4.4% $81.1 15.0%
(1) Charges are related to restructuring.
Newell Rubbermaid Inc.
Three Months Ended September 30, 2007
In Millions
Currency Analysis
By Segment 2007 2006
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning, Organization & Decor $547.2 $(4.7) $542.5 $519.3
Office Products 544.9 (14.8) 530.1 517.5
Tools & Hardware 335.9 (7.9) 328.0 324.4
Home & Family 259.3 (3.0) 256.3 224.9
Total Company $1,687.3 $(30.4) $1,656.9 $1,586.1
By Geography
United States $1,224.3 $- $1,224.3 $1,183.4
Canada 116.4 (6.9) 109.5 104.0
North America 1,340.7 (6.9) 1,333.8 1,287.4
Europe 221.2 (16.2) 205.0 188.0
Central & South America 66.7 (3.1) 63.6 64.1
All Other 58.7 (4.2) 54.5 46.6
Total Company $1,687.3 $(30.4) $1,656.9 $1,586.1
Year-over-year
Increase (Decrease)
Excluding Including Currency
By Segment Currency Currency Impact
Cleaning, Organization & Decor 4.5% 5.4% 0.9%
Office Products 2.4% 5.3% 2.9%
Tools & Hardware 1.1% 3.5% 2.4%
Home & Family 14.0% 15.3% 1.3%
Total Company 4.5% 6.4% 1.9%
By Geography
United States 3.5% 3.5% 0.0%
Canada 5.3% 11.9% 6.6%
North America 3.6% 4.1% 0.5%
Europe 9.0% 17.7% 8.6%
Central & South America (0.8)% 4.1% 4.8%
All Other 17.0% 26.0% 9.0%
Total Company 4.5% 6.4% 1.9%
Newell Rubbermaid Inc.
Nine Months Ended September 30, 2007
In Millions
Currency Analysis
By Segment 2007 2006
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning, Organization & Decor $1,549.0 $(7.5) $1,541.5 $1,478.9
Office Products 1,538.7 (37.1) 1,501.6 1,487.4
Tools & Hardware 954.4 (19.2) 935.2 930.0
Home & Family 722.7 (9.1) 713.6 666.5
Total Company $4,764.8 $(72.9) $4,691.9 $4,562.8
By Geography
United States $3,480.5 $- $3,480.5 $3,415.1
Canada 308.2 (8.0) 300.2 287.4
North America 3,788.7 (8.0) 3,780.7 3,702.5
Europe 635.1 (50.3) 584.8 557.6
Central & South America 183.4 (5.4) 178.0 170.7
All Other 157.6 (9.2) 148.4 132.0
Total Company $4,764.8 $(72.9) $4,691.9 $4,562.8
Year-over-year Increase
Excluding Including Currency
By Segment Currency Currency Impact
Cleaning, Organization & Decor 4.2% 4.7% 0.5%
Office Products 1.0% 3.4% 2.5%
Tools & Hardware 0.6% 2.6% 2.1%
Home & Family 7.1% 8.4% 1.4%
Total Company 2.8% 4.4% 1.6%
By Geography
United States 1.9% 1.9% 0.0%
Canada 4.5% 7.2% 2.8%
North America 2.1% 2.3% 0.2%
Europe 4.9% 13.9% 9.0%
Central & South America 4.3% 7.4% 3.2%
All Other 12.4% 19.4% 7.0%
Total Company 2.8% 4.4% 1.6%
SOURCE Newell Rubbermaid Inc.
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Related links:
http://www.newellco.com
http://www.newellrubbermaid.com
http://www.prnewswire.com/comp/138728.html/
CONTACT:
Ron Hardnock, Vice President, Investor
Relations, or David Doolittle, Director, Corporate
Communications, both of Newell Rubbermaid Inc., +1-770-407-3994,
Fax, +1-770-407-3983
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