Strong Third Quarter Internal Sales Growth and Continued Gross Margin
Expansion
Progress Continues on Portfolio Optimization
ATLANTA, Oct. 26 /PRNewswire-FirstCall/ -- Newell Rubbermaid Inc.
(NYSE: NWL) today reported third quarter 2006 results, reflecting strong
sales growth and gross margin improvement.
Net sales for the third quarter ended September 30, 2006 rose 10.4
percent to $1.59 billion, compared to $1.44 billion in the prior year.
Internal sales, which excludes the effect of the DYMO acquisition,
increased 6.3 percent in the third quarter 2006 as all reporting segments
delivered positive internal sales growth, led by strength in Home & Family,
Cleaning & Organization and Office Products. All reported sales figures
exclude the results of the company's Little Tikes business, which was
classified as discontinued operations during the third quarter 2006.
Consistent with the company's second quarter 2006 earnings announcement,
the results of Home Decor Europe are also included in discontinued
operations.
"Our employees and brands again delivered strong internal sales growth
and gross margin expansion in the third quarter," said Mark Ketchum, chief
executive officer of Newell Rubbermaid. "In addition, we continued the
company's transformation through execution of key supply chain, marketing
and other strategic initiatives. We also made significant progress toward
optimizing the portfolio by entering into an agreement to sell the Little
Tikes business."
Gross margin for the third quarter 2006 improved to 33.7 percent, a 150
basis point improvement over the prior year. The expansion was driven by
productivity, pricing and favorable mix, which more than offset raw
material inflation.
Excluding Project Acceleration restructuring costs of $22.1 million in
the third quarter 2006 and reversal of impairment in the third quarter
2005, income from continuing operations was $128.4 million, or $0.46 per
share, for the third quarter 2006, exceeding company guidance and the prior
year's result of $116.5 million, or $0.42 per share. The third quarter
results for each of 2006 and 2005 include one-time tax benefits of
approximately $15 million.
Income from continuing operations, as reported, was $112.7 million, or
$0.41 per share, compared to $136.6 million, or $0.49 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 $312.2 million in the
third quarter 2006, compared to net cash provided by operating activities
of $359.4 million in the prior year. Capital expenditures were $36.9
million in the third quarter 2006, versus $23.9 million in the prior year.
Dividends paid were $58.2 million, or $0.21 per share, in the third quarter
2006, versus $57.9 million in the prior year.
Nine Month Results
Net sales for the nine months ended September 30, 2006 grew 10.4
percent to $4.56 billion, compared to $4.13 billion in the prior year.
Internal sales increased 6.1 percent due primarily to strong core sales
growth. The Calphalon, Rubbermaid Home and Goody businesses posted double
digit sales growth, while the Rubbermaid Commercial, Graco, and Irwin and
Lenox branded businesses delivered high single digit growth.
Gross margin was 33.5 percent, a 260 basis point improvement over the
prior year. The expansion reflects strong productivity, mix and pricing,
which more than offset raw material inflation.
Excluding Project Acceleration restructuring costs of $50.3 million in
the first nine months 2006 and impairment charges in the first nine months
2005, operating income improved to $540.0 million, a 21.0 percent increase
over the prior year. Excluding charges, income from continuing operations
was $414.7 million, or $1.50 per share, a 27.4 percent increase over the
prior year's result of $325.4 million, or $1.18 per share. Income from
continuing operations included one-time tax benefits of $115.8 million, or
$0.41 per share, versus one-time tax benefits of $73.9 million, or $0.27
per share, in the prior year.
Income from continuing operations, as reported, was $378.4 million, or
$1.37 per share, compared to $321.0 million, or $1.17 per share, in the
prior year.
Net cash provided by operating activities was $404.3 million, compared
to $451.3 million for the prior year. Capital expenditures were $94.1
million, compared to $69.9 million for the prior year. Dividends were
$174.6 million, compared to $173.7 million for the prior year.
The company recorded a net loss from discontinued operations of $95.6
million, related primarily to the company's Home Decor Europe and Little
Tikes businesses. The net loss from discontinued operations includes a
$50.9 million impairment charge recorded in the first quarter to write off
the goodwill for certain businesses in the company's Home Decor Europe
business unit.
2006 Outlook
Fourth Quarter
The company believes internal sales will be flat, reflecting the effect
of two unusual year ago comparisons. Electronic tools delivered most of its
2005 sales in the fourth quarter. These sales will not be repeated in the
fourth quarter 2006 as this product nears the end of its life cycle.
Similarly, Rubbermaid Home Products supported strong promotional volumes in
the fourth quarter 2005 which will not be repeated in 2006. Excluding these
two items, internal sales growth is estimated at mid single digits,
consistent with the first three quarters of 2006. Net cash provided by
operating activities is forecast in the range of $200 to $250 million and
capital expenditures in the range of $30 to $40 million. Dividends are
expected to be approximately $58 million.
Gross margin is projected to expand 200 to 250 basis points over the
prior year period driven by productivity, pricing and favorable mix.
The company expects diluted earnings per share from continuing
operations for the fourth quarter 2006 to be in the range of $0.35 to
$0.37, excluding approximately $40 to $60 million ($34 to $51 million after
tax) of Project Acceleration restructuring costs. Upon completion, Project
Acceleration is projected to deliver annualized savings in excess of $120
million.
Full Year 2006
For the full year 2006, the company now believes internal sales growth
will be in the range of 4.0 to 4.5 percent. This performance would be the
result of mid single digit growth in the company's Invest businesses and
low to mid single digit growth in its Fix businesses. The company continues
to project full year gross margin expansion of 225 to 275 basis points.
Excluding Project Acceleration restructuring costs of approximately $90
to $110 million, the company now believes earnings per share from
continuing operations will range from $1.85 to $1.87 for the full year. Net
cash provided by operating activities is now forecast between $600 and $650
million, net of approximately $50 million in cash restructuring costs in
connection with Project Acceleration. The company now expects capital
expenditures of $125 to $135 million, while dividends continue to be
forecast at approximately $232 million.
A reconciliation of the third quarter and 2006 earnings outlook is as
follows:
Q3 2006 Q4 2006 FY 2006
Diluted earnings per share
from continuing
operations (as reported): $0.41 $0.20 - $0.22 $1.57 - $1.59
Project Acceleration
restructuring costs $0.05 $0.12 - $0.18 $0.25 - $0.31
Diluted earnings per share
from continuing operations
(excluding charges): $0.46 $0.35 - $0.37 $1.85 - $1.87
Conference Call
The company's third quarter 2006 earnings conference call is scheduled
for today, October 26, 2006, 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 charges, 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," "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; 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 26,500 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,
2006
As Reported Charges(1) Excl. Charges
Net sales $1,586.1 $1,586.1
Cost of products sold 1,050.9 - 1,050.9
GROSS MARGIN 535.2 - 535.2
% of sales 33.7% 33.7%
Selling, general &
administrative expenses 334.9 - 334.9
% of sales 21.1% 21.1%
Impairment charges - - -
Restructuring costs 22.1 (22.1) -
OPERATING INCOME 178.2 22.1 200.3
% of sales 11.2% 12.6%
Nonoperating expenses:
Interest expense, net 32.9 - 32.9
Other expense/(income) 3.4 - 3.4
36.3 - 36.3
INCOME BEFORE INCOME TAXES 141.9 22.1 164.0
% of sales 8.9% 10.3%
Income taxes 29.2 6.4 35.6
Effective rate 20.6% 21.7%
INCOME FROM CONTINUING OPERATIONS 112.7 15.7 128.4
% of sales 7.1% 8.1%
Discontinued operations, net of tax:
Net loss (4.2) 4.2 -
NET INCOME $108.5 $19.9 $128.4
% 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 2006 consist of
$22.1 million of Project Acceleration restructuring costs and a
$4.2 million net loss related to discontinued operations.
(2) Charges excluded from "as reported" results for 2005 include the
reversal of $25.2 million in impairment charges and a $65.1 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"
Three Months Ended September 30,
2005
As Excl. YOY %
Reported Charges(2) Charges Change
Net sales $1,436.6 $1,436.6 10.4%
Cost of products sold 974.2 - 974.2
GROSS MARGIN 462.4 - 462.4 15.7%
% of sales 32.2% 32.2%
Selling, general &
administrative expenses 273.0 273.0 22.7%
% of sales 19.0% 19.0%
Impairment charges (25.2) 25.2 -
Restructuring costs 14.6 - 14.6
OPERATING INCOME 200.0 (25.2) 174.8 14.6%
% of sales 13.9% 12.2%
Nonoperating expenses:
Interest expense, net 34.3 - 34.3
Other expense/(income) (1.1) - (1.1)
33.2 - 33.2 9.3%
INCOME BEFORE INCOME TAXES 166.8 (25.2) 141.6 15.8%
% of sales 11.6% 9.9%
Income taxes 30.2 (5.1) 25.1 41.8%
Effective rate 18.1% 17.7%
INCOME FROM CONTINUING OPERATIONS 136.6 (20.1) 116.5 10.2%
% of sales 9.5% 8.1%
Discontinued operations, net of tax:
Net loss (65.1) 65.1 -
NET INCOME $71.5 $45.0 $116.5 10.2%
% of sales 5.0% 8.1%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.50 $(0.07) $0.42
Diluted $0.49 $(0.07) $0.42
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.24) $0.24 $-
Diluted $(0.23) $0.23 $-
EARNINGS PER SHARE:
Basic $0.26 $0.16 $0.42
Diluted $0.27 $0.16 $0.42
Average shares outstanding:
Basic 274.4 274.4
Diluted 283.3 275.0
(1) 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.
(2) Charges excluded from "as reported" results for 2005 include the
reversal of $25.2 million in impairment charges and a $65.1 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,
2006
As Reported Charges(1) Excl. Charges
Net sales $4,562.8 $4,562.8
Cost of products sold 3,032.5 - 3,032.5
GROSS MARGIN 1,530.3 - 1,530.3
% of sales 33.5% 33.5%
Selling, general &
administrative expenses 990.3 - 990.3
% of sales 21.7% 21.7%
Impairment charges - - -
Restructuring costs 50.3 (50.3) -
OPERATING INCOME 489.7 50.3 540.0
% of sales 10.7% 11.8%
Nonoperating expenses:
Interest expense, net 102.2 - 102.2
Other expense/(income) 7.7 - 7.7
109.9 - 109.9
INCOME BEFORE INCOME TAXES 379.8 50.3 430.1
% of sales 8.3% 9.4%
Income taxes 1.4 14.0 15.4
Effective rate 0.4% 3.6%
INCOME FROM CONTINUING
OPERATIONS 378.4 36.3 414.7
% 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
% 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 2006 consist of
$50.3 million of Project Acceleration restructuring costs and a
$95.6 million net loss related to discontinued operations.
(2) Charges excluded from "as reported" results for 2005 consist of a
$6.2 million impairment charge and a $146.7 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,
2005
As Excl. YOY %
Reported Charges(2) Charges Change
Net sales $4,134.2 $4,134.2 10.4%
Cost of products sold 2,856.3 - 2,856.3
GROSS MARGIN 1,277.9 - 1,277.9 19.8%
% of sales 30.9% 30.9%
Selling, general & administrative
expenses 810.4 - 810.4 22.2%
% of sales 19.6% 19.6%
Impairment charges 6.2 (6.2) -
Restructuring costs 21.4 - 21.4
OPERATING INCOME 439.9 6.2 446.1 21.0%
% of sales 10.6% 10.8%
Nonoperating expenses:
Interest expense, net 96.2 - 96.2
Other expense/(income) (0.7) - (0.7)
95.5 - 95.5 15.1%
INCOME BEFORE INCOME TAXES 344.4 6.2 350.6 22.7%
% of sales 8.3% 8.5%
Income taxes 23.4 1.8 25.2 (38.9)%
Effective rate 6.8% 7.2%
INCOME FROM CONTINUING
OPERATIONS 321.0 4.4 325.4 27.4%
% of sales 7.8% 7.9%
Discontinued operations, net of tax:
Net loss (146.7) 146.7 -
NET INCOME $174.3 $151.1 $325.4 27.4%
% of sales 4.2% 7.9%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $1.17 $0.02 $1.19
Diluted $1.17 $0.02 $1.18
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.53) $0.53 $-
Diluted $(0.53) $0.53 $-
EARNINGS PER SHARE:
Basic $0.64 $0.55 $1.19
Diluted $0.63 $0.55 $1.18
Average shares outstanding:
Basic 274.4 274.4
Diluted 274.8 274.8
(1) 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.
(2) Charges excluded from "as reported" results for 2005 consist of a
$6.2 million impairment charge and a $146.7 million net loss related
to discontinued operations.
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
September 30, September 30,
Assets: 2006 2005
Cash and cash equivalents $137.4 $485.5
Accounts receivable, net 1,079.5 958.0
Inventories, net 946.0 876.4
Deferred income taxes 117.4 69.7
Prepaid expenses and other 136.2 92.3
Current assets of discontinued operations 287.7 281.2
Total Current Assets 2,704.2 2,763.1
Property, plant and equipment, net 763.6 908.3
Deferred income taxes - 6.0
Goodwill 2,412.1 1,725.2
Other intangible assets, net 437.9 294.9
Other assets 195.3 232.1
Non-current assets of discontinued operations - 201.3
Total Assets $6,513.1 $6,130.9
Liabilities and Stockholders' Equity:
Accounts payable $605.4 $484.9
Accrued compensation 155.0 116.6
Other accrued liabilities 661.0 645.6
Income taxes payable 68.9 46.9
Notes payable 21.5 6.2
Current portion of long-term debt 405.9 25.4
Current liabilities of discontinued operations 129.8 167.3
Total Current Liabilities 2,047.5 1,492.9
Long-term debt 2,028.8 2,377.2
Deferred income taxes 31.8 -
Other non-current liabilities 582.9 532.9
Long-term liabilities of discontinued operations - 8.8
Stockholders' Equity 1,822.1 1,719.1
Total Liabilities and
Stockholders' Equity $6,513.1 $6,130.9
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
For The Nine Months Ended September 30,
2006 2005
Operating Activities:
Net income $282.8 $174.3
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 147.1 145.3
Impairment charges 50.9 40.2
Non-cash restructuring costs 32.5 5.3
Deferred income taxes 18.1 17.6
Gain on sale of assets/debt
extinguishment (5.1) (7.1)
Stock-based compensation
expense 24.7 4.6
Loss on disposal of
discontinued operations 11.9 87.5
Other (10.0) (10.2)
Changes in current accounts,
excluding the effects of
acquisitions:
Accounts receivable 48.7 94.7
Inventories (135.8) (74.5)
Accounts payable 7.5 (60.9)
Accrued liabilities and other (84.2) (1.0)
Discontinued operations 15.2 35.5
Net cash provided by operating
activities $404.3 $451.3
Investing Activities:
Acquisitions, net of cash acquired $(42.4) $(35.3)
Capital expenditures (94.1) (69.9)
Disposals of non-current assets
and sale of businesses 48.3 29.4
Net cash used in investing
activities $(88.2) $(75.8)
Financing Activities:
Proceeds from issuance of debt $170.3 $134.1
Payments on notes payable and
long-term debt (300.6) (345.0)
Cash dividends (174.6) (173.7)
Proceeds from exercised stock
options and other 8.9 (2.8)
Net cash used in financing
activities $(296.0) $(387.4)
Exchange rate effect on cash and
cash equivalents $1.8 $(8.2)
Increase (Decrease) in cash and
cash equivalents 21.9 (20.1)
Cash and cash equivalents at
beginning of year 115.5 505.6
Cash and cash equivalents at end
of period $137.4 $485.5
Newell Rubbermaid Inc.
Calculation of Free Cash Flow (1)
For The Three Months Ended September 30,
Free Cash Flow (in millions): 2006 2005
Net cash provided by operating
activities $312.2 $359.4
Capital expenditures (36.9) (23.9)
Free Cash Flow $275.3 $335.5
For The Nine Months Ended September 30,
Free Cash Flow (in millions): 2006 2005
Net cash provided by operating
activities $404.3 $451.3
Capital expenditures (94.1) (69.9)
Free Cash Flow $310.2 $381.4
(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-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
Q1:
Cleaning & Organization $333.1 $21.3 $- $21.3 6.4%
Office Products 390.8 32.3 - 32.3 8.3%
Tools & Hardware 276.8 33.1 - 33.1 12.0%
Home Fashions 116.6 17.1 - 17.1 14.7%
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%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
Q1:
Cleaning & Organization $300.3 $12.5 $- $12.5 4.2%
Office Products 332.8 33.5 - 33.5 10.1%
Tools & Hardware 276.4 26.7 - 26.7 9.7%
Home Fashions 97.7 2.3 - 2.3 2.4%
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%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q1:
Cleaning & Organization $32.8 10.9% $8.8 70.4%
Office Products 58.0 17.4% (1.2) (3.6)%
Tools & Hardware 0.4 0.1% 6.4 24.0%
Home Fashions 18.9 19.3% 14.8 643.5%
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%
(1) Charges are primarily related to restructuring and impairment.
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
Q2:
Cleaning & Organization $403.3 $42.9 $- $42.9 10.6%
Office Products 579.1 99.9 - 99.9 17.3%
Tools & Hardware 328.8 53.8 - 53.8 16.4%
Home Fashions 106.6 14.4 - 14.4 13.5%
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%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
Q2:
Cleaning & Organization $365.1 $23.1 $- $23.1 6.3%
Office Products 495.5 98.9 - 98.9 20.0%
Tools & Hardware 315.5 49.3 - 49.3 15.6%
Home Fashions 115.0 8.0 - 8.0 7.0%
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%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q2:
Cleaning & Organization $38.2 10.5% $19.8 85.7%
Office Products 83.6 16.9% 1.0 1.0%
Tools & Hardware 13.3 4.2% 4.5 9.1%
Home Fashions (8.4) (7.3)% 6.4 80.0%
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%
(1) Charges are primarily related to restructuring and impairment.
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
Q3:
Cleaning & Organization $401.1 $50.2 $- $50.2 12.5%
Office Products 517.5 75.7 - 75.7 14.6%
Tools & Hardware 324.4 46.2 - 46.2 14.2%
Home Fashions 118.2 17.6 - 17.6 14.9%
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%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
Q3:
Cleaning & Organization $375.8 $51.1 $- $51.1 13.6%
Office Products 427.8 59.9 - 59.9 14.0%
Tools & Hardware 318.9 46.3 - 46.3 14.5%
Home Fashions 115.1 16.8 - 16.8 14.6%
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%
Year-over-year changes
Net Sales Operating Income
$ % $ %
Q3:
Cleaning & Organization $25.3 6.7% $(0.9) (1.8)%
Office Products 89.7 21.0% 15.8 26.4%
Tools & Hardware 5.5 1.7% (0.1) (0.2)%
Home Fashions 3.1 2.7% 0.8 4.8%
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%
(1) Charges are primarily related to restructuring and impairment.
2006
Excluding Charges Reconciliation (1)
Ex Opera-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
YTD:
Cleaning & Organization $1,137.5 $114.4 $- $114.4 10.1%
Office Products 1,487.4 207.9 - 207.9 14.0%
Tools & Hardware 930.0 133.1 - 133.1 14.3%
Home Fashions 341.4 49.1 - 49.1 14.4%
Other 666.5 91.4 - 91.4 13.7%
Impairment Charge - - -
Restructuring Costs (50.3) 50.3 -
Corporate (55.9) - (55.9)
Total $4,562.8 $489.7 $50.3 $540.0 11.8%
2005
Excluding Charges Reconciliation (1)
Ex Opera-
Net Reported Excluded Charges ting
Sales OI Charges OI Margin
YTD:
Cleaning & Organization $1,041.2 $86.7 $- $86.7 8.3%
Office Products 1,256.1 192.3 - 192.3 15.3%
Tools & Hardware 910.8 122.3 - 122.3 13.4%
Home Fashions 327.8 27.1 - 27.1 8.3%
Other 598.3 68.4 - 68.4 11.4%
Impairment Charge (6.2) 6.2 -
Restructuring Costs (21.4) - (21.4)
Corporate (29.3) - (29.3)
Total $4,134.2 $439.9 $6.2 $446.1 10.8%
Year-over-year changes
Net Sales Operating Income
$ % $ %
YTD:
Cleaning & Organization $96.3 9.2% $27.7 31.9%
Office Products 231.3 18.4% 15.6 8.1%
Tools & Hardware 19.2 2.1% 10.8 8.8%
Home Fashions 13.6 4.1% 22.0 81.2%
Other 68.2 11.4% 23.0 33.6%
Impairment Charge -
Restructuring Costs 21.4
Corporate (26.6) 90.8%
Total $428.6 10.4% $93.9 21.0%
(1) Charges are primarily related to restructuring and impairment.
Newell Rubbermaid Inc.
Three Months Ended September 30, 2006
In Millions
Currency Analysis
By Segment 2006 2005
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning & Organization $401.1 $(3.5) $397.6 $375.8
Office Products 517.5 (6.6) 510.9 427.8
Tools & Hardware 324.4 (3.7) 320.7 318.9
Home Fashions 118.2 (0.9) 117.3 115.1
Other 224.9 (1.9) 223.0 199.0
Total Company $1,586.1 $(16.6) $1,569.5 $1,436.6
By Geography
United States $1,183.4 $- $1,183.4 $1,093.1
Canada 104.0 (7.8) 96.2 96.4
North America 1,287.4 (7.8) 1,279.6 1,189.5
Europe 188.0 (9.1) 178.9 146.9
Central & South America 64.1 0.1 64.2 60.6
All Other 46.6 0.2 46.8 39.6
Total Company $1,586.1 $(16.6) $1,569.5 $1,436.6
Newell Rubbermaid Inc.
Three Months Ended September 30, 2006
In Millions
Currency Analysis
By Segment Year-over-year
Increase (Decrease)
Excluding Including Currency
Currency Currency Impact
Cleaning & Organization 5.8% 6.7% 0.9%
Office Products 19.4% 21.0% 1.5%
Tools & Hardware 0.6% 1.7% 1.2%
Home Fashions 1.9% 2.7% 0.8%
Other 12.1% 13.0% 1.0%
Total Company 9.3% 10.4% 1.2%
By Geography
United States 8.3% 8.3% 0.0%
Canada (0.2)% 7.9% 8.1%
North America 7.6% 8.2% 0.7%
Europe 21.8% 28.0% 6.2%
Central & South America 5.9% 5.8% (0.2)%
All Other 18.2% 17.7% (0.5)%
Total Company 9.3% 10.4% 1.2%
Newell Rubbermaid Inc.
Nine Months Ended September 30, 2006
In Millions
Currency Analysis
By Segment 2006 2005
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning & Organization $1,137.5 $(8.8) $1,128.7 $1,041.2
Office Products 1,487.4 (0.2) 1,487.2 1,256.1
Tools & Hardware 930.0 (4.6) 925.4 910.8
Home Fashions 341.4 (3.1) 338.3 327.8
Other 666.5 - 666.5 598.3
Total Company $4,562.8 $(16.7) $4,546.1 $4,134.2
By Geography
United States $3,415.1 $- $3,415.1 $3,130.2
Canada 287.4 (23.5) 263.9 255.2
North America 3,702.5 (23.5) 3,679.0 3,385.4
Europe 557.6 7.6 565.2 474.1
Central & South America 170.7 (3.4) 167.3 161.1
All Other 132.0 2.6 134.6 113.6
Total Company $4,562.8 $(16.7) $4,546.1 $4,134.2
Newell Rubbermaid Inc.
Nine Months Ended September 30, 2006
In Millions
Currency Analysis
By Segment Year-over-year
Increase (Decrease)
Excluding Including Currency
Currency Currency Impact
Cleaning & Organization 8.4% 9.2% 0.8%
Office Products 18.4% 18.4% 0.0%
Tools & Hardware 1.6% 2.1% 0.5%
Home Fashions 3.2% 4.1% 0.9%
Other 11.4% 11.4% 0.0%
Total Company 10.0% 10.4% 0.4%
By Geography
United States 9.1% 9.1% 0.0%
Canada 3.4% 12.6% 9.2%
North America 8.7% 9.4% 0.7%
Europe 19.2% 17.6% (1.6)%
Central & South America 3.8% 6.0% 2.1%
All Other 18.5% 16.2% (2.3)%
Total Company 10.0% 10.4% 0.4%
SOURCE Newell Rubbermaid Inc.
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CONTACT:
Ron Hardnock, Vice President, Investor
Relations, or Esther Lippman, Senior Manager, Public Relations,
+1-770-407-3994, or fax, +1-770-407-3983, of Newell Rubbermaid
Inc.
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