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   Non-TechNWL: Newell Rubbermaid, Inc.


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From: Dr_of_Microcaps5/3/2014 1:56:15 AM
   of 128
 
Newell Rubbermaid Announces First Quarter Results


Newell Rubbermaid19 hours ago





Reaffirms Full Year Guidance

Increases Quarterly Dividend 13 percent to $0.17 per share

ATLANTA, May 2, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its first quarter 2014 financial results.

"We delivered solid first quarter results in the context of two previously communicated events. Our team did a good job overcoming the adverse impacts of the harness buckle recall on select car seats in our U.S. Baby business and the weather-related slow down on our U.S.-centric Home Solutions business," said Michael Polk, Chief Executive Officer. "Strong core sales growth in Writing offset declines in Home Solutions and Baby, yielding normalized earnings per share of $0.35, flat with last year's results.

"We are confident in our full year financial guidance and expect the company's core sales and earnings per share growth to accelerate through the balance of the year as we significantly increase advertising and promotion investment levels in support of our brands and innovation. Importantly, the Board of Directors has approved a 13 percent increase in our quarterly dividend to $0.17, an annualized rate of $0.68 per share. This is the fourth dividend increase in the last three years, which is a reflection of the Board's continued confidence in Newell's strong cash generation ability and in the promise of our Growth Game Plan."

First Quarter Executive Summary

Net sales were $1.23 billion, a 0.7 percent decline versus prior year results.
Core sales, which exclude the impact of changes in foreign currency, grew 0.7 percent.
Normalized gross margin was 38.8 percent, a 60 basis point improvement compared with the prior year period. Reported gross margin was 38.1 percent versus 38.2 percent in the prior year period.
Normalized operating margin was 11.0 percent versus 11.2 percent in the prior year period. Reported operating margin increased 60 basis points to 8.5 percent.
Normalized diluted earnings per share were $0.35 compared with $0.35 in the prior year. Reported diluted earnings per share were $0.19 compared with $0.19 in the prior year.
The company's first quarter reported results include an $11.0 million charge ($0.02 per diluted share) which reflects the cost of harness buckle recall issues on select car seats in our Baby segment. This charge has been excluded from normalized operating income and normalized EPS.
Operating cash flow was a use of $92.1 million compared with a use of $123.1 million in the prior year period.
The company paid dividends of $42.9 million and repurchased 1.5 million shares of common stock at a cost of $44.4 million. In addition, the company took delivery of 2.0 million shares in mid-March to complete the Accelerated Share Repurchase program initiated in the fourth quarter of 2013.
The company announced a 13 percent ($0.02 per share) increase in its quarterly dividend to $0.17 per share.
The company recorded a monetary asset devaluation charge of $38.7 million, or $0.09 per diluted share, associated with adopting the SICAD I rate for its Venezuelan operations.
The company reaffirmed its guidance for 2014 core sales growth of 3 to 4 percent, operating margin improvement of up to 40 basis points, normalized EPS of $1.94 to $2.00 and operating cash flow of $600 to $650 million.First Quarter 2014 Operating Results

Net sales in the first quarter were $1.23 billion, compared with $1.24 billion in the prior year. Core sales, which exclude 140 basis points of negative foreign currency impact, grew 0.7 percent.

Reported gross margin was 38.1 percent. Normalized gross margin was 38.8 percent, a 60 basis point improvement versus prior year results. Normalized gross margin excludes the impact of costs associated with the harness buckle recall. Pricing and productivity more than offset inflation and the negative impact of transactional foreign currency.

First quarter reported operating margin was 8.5 percent compared with 7.9 percent in the prior year. Reported operating income was $105.2 million versus $97.8 million.

Normalized operating margin was 11.0 percent, compared with 11.2 percent in the prior year period. Normalized operating income was $135.9 million compared with $138.8 million in the prior year period. First quarter 2014 normalized operating income excludes restructuring and restructuring-related costs of $19.7 million and $11.0 million of costs associated with the harness buckle recall issue while 2013 normalized operating income excludes $41.0 million of restructuring and restructuring-related costs.

The company reported a net benefit for income taxes of $1.3 million due to discrete period benefits relating to resolution of certain tax items and the tax rate applicable to the $38.7 million charge associated with its Venezuelan operations. The reported tax expense for the prior year period was $6.4 million. The normalized tax rate was 18.4 percent compared with 16.5 percent in the prior year.

Reported net income was $52.9 million, compared with $54.2 million in the prior year. Reported diluted earnings per share were $0.19 compared with the prior year's $0.19 per diluted share. Lower restructuring costs and the positive impact from a lower share count were offset by a $38.7 million monetary asset devaluation charge resulting from the adoption of the SICAD I Venezuelan Bolivar exchange rate and the $11.0 million charge reflecting the costs associated with the harness buckle recall issue.

Normalized net income was $98.1 million, compared with $102.1 million in the prior year. Normalized diluted earnings per share of $0.35 were flat compared with the prior year as 60 basis points of normalized gross margin increase and a lower share count were offset by the loss of sales momentum on Baby due to the harness buckle recall and the sluggish performance of the U.S.-centric Home Solutions segment as a result of a weather-related slowdown in U.S. retailer point-of-sale results.

For the first quarter 2014, normalized diluted earnings per share exclude $0.05 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.02 per diluted share associated with the harness buckle recall in Baby & Parenting and $0.09 per diluted share resulting from the use of the SICAD I exchange rate for the company's Venezuelan operations. For the first quarter 2013, normalized diluted earnings per share exclude $0.12 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.02 per diluted share resulting from the devaluation of the Venezuelan Bolivar, $0.02 per diluted share attributable to the resolution of tax contingencies, and a net loss (including impairments) from discontinued operations of $0.03 per diluted share. (A reconciliation to "normalized" results is included below.)

Operating cash flow was a use of $92.1 million compared with a use of $123.1 million last year, primarily due to the absence of a U.S. pension plan contribution.

Recall of Harness Buckles on Select Car Seats

In February 2014, Graco announced a voluntary recall in the U.S. of harness buckles used on approximately 4 million toddler car seats manufactured between 2006 and 2013. There have been no reported injuries associated with the recalled harness buckles. These toddler car seat buckles were susceptible to contamination from food, debris or spilled liquids, which can result in difficulty or inability to open the buckles. As a result of the recall, affected car seats which were at retail or in customer warehouses have been reworked in the field or returned to the company for rework. Graco continues to offer consumers replacement harness buckles at no cost.

Graco is in ongoing discussions with the National Highway Traffic Safety Administration (NHTSA) regarding a potential recall of harness buckles used on select infant car seats. The company remains hopeful that its dialogue with NHTSA and shared commitment to child passenger safety will result in a constructive resolution and the best outcome for consumers. The company expects the infant harness buckle discussions will be resolved in the second quarter.

The Company's first quarter reported results include an $11.0 million charge (or $0.02 per diluted share) which includes the cost of the first quarter recall of harness buckles on select toddler car seats as well as the company's current estimate of costs associated with the infant car seat harness buckle issue. This charge has been excluded from normalized operating income and normalized EPS. Normalized operating income and normalized EPS do not exclude the impact on net sales of returns from retailers or the lost sales associated with approximately five weeks of lost shipments on the affected toddler car seats.

A reconciliation of the first quarter 2014 and 2013 results is as follows:


Q1 2014*Q1 2013*



Diluted earnings per share (as reported)$0.19$0.19



Restructuring and restructuring-related costs0.050.12



Costs associated with harness buckle recall0.02--



Currency devaluation -- Venezuela0.090.02



Resolution of income tax contingencies--(0.02)



Discontinued operations--0.03



Normalized EPS$0.35$0.35



*Totals may not add due to rounding

First Quarter 2014 Operating Segment Results

Writing net sales for the first quarter were $361.3 million, a 6.1 percent improvement compared to prior year. Core sales increased 8.0 percent, driven by pricing and market share growth in the Americas, partially offset by product line exits in Europe. Operating income was $77.1 million, or 21.3 percent of sales, compared with $63.2 million, or 18.6 percent of sales, in the prior year. The increase in operating margin was largely driven by positive mix, productivity, and pricing in Latin America.

Home Solutions net sales were $321.2 million, a 5.2 percent decline compared to prior year. Core sales declined 4.5 percent, as weather-related point-of-sale softness and the negative effect on volume of less merchandising on certain Rubbermaid Consumer low margin product lines were partially offset by increased distribution on Calphalon(R). Normalized operating income was $26.3 million, or 8.2 percent of sales, compared with $34.1 million, or 10.1 percent of sales, in the prior year. The decrease in operating margin was driven by input cost inflation and the deleveraging effect on margins of lower sales volumes, partially offset by productivity and pricing.

Tools segment net sales were $187.8 million, a 0.4 percent decline compared to prior year. Core sales increased 2.4 percent driven by strong volume and share growth on Lenox in North America and Irwin in Europe. Adjusting for the prior year pull forward of volume into the first quarter of 2013 related to the second quarter 2013 SAP conversion in Brazil, Tools global core sales increased 5.2 percent. Operating income was $21.4 million, or 11.4 percent of sales, compared with $18.7 million, or 9.9 percent of sales, in the prior year. The increase in operating margin was driven by pricing and favorable mix partially offset by inflation.

Commercial Products net sales were $182.6 million, a 0.3 percent decrease compared to prior year. Core sales increased 0.2 percent as solid growth on Rubbermaid Commercial Products was largely offset by weakness in the U.S. Healthcare business against a very strong year ago comparison period. Operating income was $13.8 million, or 7.6 percent of sales, compared with $21.6 million, or 11.8 percent of sales, in the prior year period. The decrease in operating margin reflects inflation and increased investment in selling capabilities in North America and Latin America.

Baby & Parenting net sales were $179.3 million, a decline of 5.4 percent compared to prior year. Core sales declined 4.4 percent, primarily attributable to the U.S. recall of harness buckles on select toddler car seats and the exit of certain product lines in Europe. Normalized operating income was $16.4 million, or 9.1 percent of sales, compared with $23.9 million, or 12.6 percent of sales, in the prior year. The decrease in operating margin was largely due to inflation and the absence of fixed cost leverage associated with lower sales volume.

2014 Full Year Outlook

Newell Rubbermaid reaffirmed its full year 2014 guidance as follows:

Core sales growth of 3 to 4 percent;
Normalized operating margin improvement of up to 40 basis points;
Normalized EPS of $1.94 to $2.00; and
Operating cash flow between $600 and $650 million.The company now expects foreign exchange to have a negative impact on 2014 net sales of about 200 basis points and to have a negative impact on both normalized and reported EPS of $0.04 to $0.05 per diluted share for the balance of 2014. Subsequent to the first quarter, the company will begin using the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela's SICAD I exchange mechanism (approximately 10.5 to 11.0 Bolivars per U.S. dollar).

2014 normalized EPS guidance excludes between $100 and $120 million of Project Renewal restructuring and restructuring-related charges. (A reconciliation of expected reported results to "normalized" results is included below.)

The company is on track to realize cumulative annualized cost savings of $270 to $325 million by the second quarter of 2015 related to Project Renewal. The majority of these savings will be reinvested in the business to strengthen brand building and selling capabilities and accelerate growth.

Operating cash flow guidance assumes $100 to $120 million in restructuring and restructuring-related cash payments. Capital expenditures are projected at $150 to $175 million.

A reconciliation of the 2014 earnings outlook is as follows:


FY 2014


Diluted earnings per share$1.50 to $1.56


Restructuring and restructuring-related costs$0.29 to $0.37


Costs associated with harness buckle recall$0.02


Currency devaluation - Venezuela$0.09




Normalized EPS$1.94 to $2.00
Conference Call

The company's first quarter 2014 earnings conference call will be held today, May 2, 2014, at 8:00 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The webcast will be available for replay. A supporting slide presentation will be made available in the Investor Relations section on the company's Web site under Quarterly Earnings.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission and includes a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

The company uses certain financial measures that are included in this press release and the additional financial information both in explaining its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The company's management believes that these measures - including those that are "non-GAAP financial measures" - and the information they provide are useful to investors since these measures (a) permit investors to view the company's performance using the same tools that management uses to evaluate the company's past performance, reportable business segments and prospects for future performance and (b) determine certain elements of management's incentive compensation.

The company's management believes that core sales, as reflected in the Currency Analysis, is useful to investors because it demonstrates the effect of foreign currency on reported sales. The effect of foreign currency on reported sales is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference in these two amounts being the change in core sales and the difference between the change in as reported sales and the change in core sales reported as the currency impact. The company believes that providing adjusted core sales excluding the impacts of product line exits and timing shifts related to implementations of SAP is useful in that it helps investors understand underlying business trends. The company's management believes that "normalized" gross margin, "normalized" SG&A expense, "normalized" operating income and "normalized" tax rates, which exclude restructuring and restructuring-related expenses and one-time events such as costs related to product recalls, the extinguishment of debt, certain tax benefits and charges, impairment charges, discontinued operations and certain other items, are useful because they provide investors with a meaningful perspective on the current underlying performance of the company's core ongoing operations. The company's management believes that "normalized" earnings per share, which also excludes restructuring and restructuring-related charges and one-time events such as losses related to product recalls, monetary asset devaluations resulting from the adoption of the SICAD I Venezuelan Bolivar exchange rate, the extinguishments of debt, tax benefits and charges, impairment charges, discontinued operations and certain other items, is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance. The company also uses both core sales and normalized earnings per share as two of the three performance criteria in its management cash bonus plan.

The company determines the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.

While the company believes that these non-GAAP financial measures are useful in evaluating the company's performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

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 sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, changes in exchange rates, product recalls and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "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, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; product liability, product recalls or regulatory actions (including the ultimate resolution of the potential recall of harness buckles on certain infant car seats); our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; a failure of one of our key information technology systems or related controls; the potential inability to attract, retain and motivate key employees; future events that could adversely affect the value of our assets and require impairment charges; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations; and those factors listed in the company's most recently filed Annual Report on Form 10-K 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.

Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)













Three Months Ended March 31,



YOY

20142013% Change




Net sales$ 1,232.2$ 1,240.8(0.7)%
Cost of products sold762.9767.2




GROSS MARGIN469.3473.6(0.9)%
% of sales38.1%38.2%




Selling, general & administrative expenses352.1341.43.1%
% of sales28.6%27.5%




Restructuring costs12.034.4




OPERATING INCOME105.297.87.6%
% of sales8.5%7.9%




Nonoperating expenses:


Interest expense, net14.414.6
Other expense, net40.013.0

54.427.697.1%




INCOME BEFORE INCOME TAXES50.870.2(27.6)%
% of sales4.1%5.7%




Income taxes(1.3)6.4NMF
Effective rateNMF9.1%




NET INCOME FROM CONTINUING OPERATIONS52.163.8(18.3)%
% of sales4.2%5.1%




Income (loss) from discontinued operations, net of tax0.8(9.6)




NET INCOME$ 52.9$ 54.2(2.4)%

4.3%4.4%




EARNINGS PER SHARE:


Basic


Income from continuing operations$ 0.19$ 0.22
Income (loss) from discontinued operations$ --$ (0.03)
Net income$ 0.19$ 0.19




Diluted


Income from continuing operations$ 0.18$ 0.22
Income (loss) from discontinued operations$ --$ (0.03)
Net income$ 0.19$ 0.19




AVERAGE SHARES OUTSTANDING:


Basic280.9290.0
Diluted283.8293.1




NMF - Not meaningful



Newell Rubbermaid Inc.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
CERTAIN LINE ITEMS
(in millions, except per share data)









Three Months Ended March 31, 2014

GAAP Measure
Restructuring andCharge resulting from
Non-GAAP Measure


Productrestructuring-relatedthe devaluation of theDiscontinued
Percentage

Reportedrecall costs (1)costs (2)Venezuelan Bolivar (3)operations (4)Normalized*of Sales








Cost of products sold$ 762.9$ (8.6)$ --$ --$ --$ 754.361.2%








Gross margin$ 469.3$ 8.6$ --$ --$ --$ 477.938.8%








Selling, general & administrative expenses$ 352.1$ (2.4)$ (7.7)$ --$ --$ 342.027.8%








Operating income$ 105.2$ 11.0$ 19.7$ --$ --$ 135.911.0%








Nonoperating expenses$ 54.4$ --$ --$ (38.7)$ --$ 15.7








Income before income taxes$ 50.8$ 11.0$ 19.7$ 38.7$ --$ 120.2








Income taxes (5)$ (1.3)$ 4.0$ 5.5$ 13.9$ --$ 22.1








Net income from continuing operations$ 52.1$ 7.0$ 14.2$ 24.8$ --$ 98.1








Net income$ 52.9$ 7.0$ 14.2$ 24.8$ (0.8)$ 98.1








Diluted earnings per share**$ 0.19$ 0.02$ 0.05$ 0.09$ (0.00)$ 0.35

















Three Months Ended March 31, 2013

GAAP MeasureRestructuring andCharge resulting from

Non-GAAP Measure


restructuring-relatedthe devaluation of theDiscontinuedNon-recurring
Percentage

Reportedcosts (2)Venezuelan Bolivar (3)operations (4)tax items (6)Normalized*of Sales
















Selling, general & administrative expenses$ 341.4$ (6.6)$ --$ --$ --$ 334.827.0%








Operating income$ 97.8$ 41.0$ --$ --$ --$ 138.811.2%








Nonoperating expenses$ 27.6$ --$ (11.1)$ --$ --$ 16.5








Income before income taxes$ 70.2$ 41.0$ 11.1$ --$ --$ 122.3








Income taxes (5)$ 6.4$ 4.9$ 4.1$ --$ 4.8$ 20.2








Net income from continuing operations$ 63.8$ 36.1$ 7.0$ --$ (4.8)$ 102.1








Net income$ 54.2$ 36.1$ 7.0$ 9.6$ (4.8)$ 102.1








Diluted earnings per share**$ 0.19$ 0.12$ 0.02$ 0.03$ (0.02)$ 0.35
















* Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.
**Totals may not add due to rounding.








(1) During the three months ended March 31, 2014, the Company recognized an $11.0 million charge associated with the Graco product recall.








(2) Restructuring and restructuring-related costs during the three months ended March 31, 2014 include $7.7 million of organizational change implementation and restructuring-related costs and $12.0 million of restructuring costs incurred in connection with Project Renewal. Restructuring and restructuring-related costs during the three months ended March 31, 2013 include $6.6 million of organizational change implementation and restructuring-related costs and $34.4 million of restructuring costs incurred in connection with Project Renewal.








(3) During the three months ended March 31, 2014 and 2013, the Company recognized foreign exchange losses of $38.7 million and $11.1 million, respectively, resulting from the devaluation of the Venezuelan Bolivar, which under hyperinflationary accounting is recorded in the Statement of Operations.








(4) During the three months ended March 31, 2014, the Company recognized net income of $0.8 million in discontinued operations. During the three months ended March 31, 2013, the Company recognized a net loss, including impairments, of $9.6 million in discontinued operations relating to the operations of the Hardware and Teach businesses.








(5) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.








(6) During the three months ended March 31, 2013, the Company recognized a non-recurring income tax benefit of $4.8 million resulting from the resolution of various income tax contingencies.

Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)




March 31,March 31,
Assets:20142013



Cash and cash equivalents$ 136.8$ 174.2
Accounts receivable, net973.11,021.3
Inventories, net801.3815.0
Deferred income taxes121.3155.4
Prepaid expenses and other198.8190.7



Total Current Assets2,231.32,356.6



Property, plant and equipment, net541.3549.5
Goodwill2,362.02,340.4
Other intangible assets, net606.5642.6
Other assets252.8308.1



Total Assets$ 5,993.9$ 6,197.2



Liabilities and Stockholders' Equity:




Accounts payable$ 542.8$ 570.1
Accrued compensation99.6103.0
Other accrued liabilities590.9588.5
Short-term debt318.7411.8
Current portion of long-term debt0.81.2



Total Current Liabilities1,552.81,674.6



Long-term debt1,666.71,699.6
Other noncurrent liabilities700.9834.4



Stockholders' Equity - Parent2,070.01,985.1
Stockholders' Equity - Noncontrolling Interests3.53.5



Total Stockholders' Equity2,073.51,988.6



Total Liabilities and Stockholders' Equity$ 5,993.9$ 6,197.2

Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in millions)




Three Months Ended March 31,

20142013
Operating Activities:

Net income$ 52.9$ 54.2
Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization38.139.8
Net (gain) loss from sale of discontinued operations, including impairments(2.2)12.4
Non-cash restructuring costs1.0--
Deferred income taxes14.638.9
Stock-based compensation expense7.09.4
Other, net45.08.9
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:

Accounts receivable130.580.3
Inventories(115.8)(123.4)
Accounts payable(16.1)45.1
Accrued liabilities and other(247.1)(288.7)
Net cash used in operating activities$ (92.1)$ (123.1)



Investing Activities:

Capital expenditures(31.9)(33.6)
Other(0.3)(0.3)
Net cash used in investing activities$ (32.2)$ (33.9)



Financing Activities:

Net short-term borrowings$ 144.9$ 200.7
Repurchase and retirement of shares of common stock(44.4)(33.8)
Cash dividends(42.9)(44.5)
Excess tax benefits related to stock-based compensation5.69.1
Other stock-based compensation activity, net10.716.6
Net cash provided by financing activities$ 73.9$ 148.1



Currency rate effect on cash and cash equivalents$ (39.1)$ (0.7)



Decrease in cash and cash equivalents$ (89.5)$ (9.6)
Cash and cash equivalents at beginning of period226.3183.8
Cash and cash equivalents at end of period$ 136.8$ 174.2

Newell Rubbermaid Inc.
Financial Worksheet- Segment Reporting
(In Millions)
















20142013





Reconciliation (1,2)

Reconciliation (1)
Year-over-year changes


ReportedExcludedNormalizedOperating
ReportedExcludedNormalizedOperatingNet SalesNormalized OI

Net SalesOIItemsOIMarginNet SalesOIItemsOIMargin$%$%
Q1:













Writing$ 361.3$ 77.1$ --$ 77.121.3%$ 340.6$ 63.2$ --$ 63.218.6%$ 20.76.1%$ 13.922.0%
Home Solutions321.226.3--26.38.2%338.934.1--34.110.1%(17.7)(5.2)%(7.8)(22.9)%
Tools187.821.4--21.411.4%188.618.7--18.79.9%(0.8)(0.4)%2.714.4%
Commercial Products182.613.8--13.87.6%183.121.6--21.611.8%(0.5)(0.3)%(7.8)(36.1)%
Baby & Parenting179.35.411.016.49.1%189.623.9--23.912.6%(10.3)(5.4)%(7.5)(31.4)%
Restructuring Costs--(12.0)12.0--
--(34.4)34.4--
--
--
Corporate--(26.8)7.7(19.1)
--(29.3)6.6(22.7)
--
3.615.9%
Total$ 1,232.2$ 105.2$ 30.7$ 135.911.0%$ 1,240.8$ 97.8$ 41.0$ 138.811.2%$ (8.6)(0.7)%$ (2.9)(2.1)%






























(1) Excluded items consist of organizational change implementation, restructuring-related, and restructuring costs. Organizational change implementation and restructuring-related costs of $7.7 million and restructuring costs of $12.0 million incurred during 2014 relate to Project Renewal. For 2013, organizational change implementation and restructuring-related costs of $6.6 million and restructuring costs of $34.4 million relate to Project Renewal.















(2) Baby & Parenting normalized operating income for the three months ended March 31, 2014 excludes charges of $11.0 million relating to the Graco product recall.











Newell Rubbermaid Inc.









Three Months Ended March 31, 2014









In Millions




















Currency Analysis































By Segment





















Net Sales,Core
Year-Over-Year

As ReportedSales (1)
Increase (Decrease)



Increase

IncreaseCurrencyExcludingIncludingCurrency

20142013(Decrease)20142013(Decrease)ImpactCurrencyCurrencyImpact











Writing$ 361.3$ 340.6$ 20.7$ 364.5$ 337.6$ 26.9$ (6.2)8.0%6.1%(1.9)%
Home Solutions321.2338.9(17.7)323.1338.2(15.1)(2.6)(4.5)%(5.2)%(0.7)%
Tools187.8188.6(0.8)190.2185.84.4(5.2)2.4%(0.4)%(2.8)%
Commercial Products182.6183.1(0.5)183.1182.80.3(0.8)0.2%(0.3)%(0.5)%
Baby & Parenting179.3189.6(10.3)179.9188.2(8.3)(2.0)(4.4)%(5.4)%(1.0)%











Total Company$ 1,232.2$ 1,240.8$ (8.6)$ 1,240.8$ 1,232.6$ 8.2$ (16.8)0.7%(0.7)%(1.4)%






















By Geography




















United States$ 831.2$ 818.9$ 12.3$ 831.2$ 818.9$ 12.3$ --1.5%1.5%0.0%
Canada53.061.8(8.8)56.560.7(4.2)(4.6)(6.9)%(14.2)%(7.3)%
Total North America884.2880.73.5887.7879.68.1(4.6)0.9%0.4%(0.5)%











Europe, Middle East and Africa164.2167.1(2.9)159.5168.0(8.5)5.6(5.1)%(1.7)%3.4%
Latin America92.093.2(1.2)97.888.98.9(10.1)10.0%(1.3)%(11.3)%
Asia Pacific91.899.8(8.0)95.896.1(0.3)(7.7)(0.3)%(8.0)%(7.7)%
Total International348.0360.1(12.1)353.1353.00.1(12.2)0.0%(3.4)%(3.4)%











Total Company$ 1,232.2$ 1,240.8$ (8.6)$ 1,240.8$ 1,232.6$ 8.2$ (16.8)0.7%(0.7)%(1.4)%






















Core Sales, Excluding Brazil SAP










20142013Brazil2013 Excl
Core Sales Excl




Core Sales (1)Core Sales (1)SAP Conversion (2)Brazil SAPIncreaseBrazil SAP



Tools$ 190.2$ 185.8$ (5.0)$ 180.8$ 9.45.2%



LATAM$ 97.8$ 88.9$ (5.0)$ 83.9$ 13.916.6%

























Core Sales, Excluding EMEA Product Line Exits










2014Product2014 Excl2013
Core Sales Excl




Core Sales (1)Line Exits (3)Product Line ExitsCore Sales (1)DecreaseProduct Line Exits



EMEA$ 159.5$ 6.3$ 165.8$ 168.0$ (2.2)(1.3)%














(1) "Core Sales" is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference between the change in "As Reported" sales and the change in "Core Sales" reported in the table as "Currency Impact".











(2) In contemplation of the Brazil SAP conversion in April 2013, the Company communicated with key customers about their interest in accelerating orders to mitigate the risk of potential business disruption. The Company estimated the impact of the timing shift related to the Brazil SAP conversion by tracking orders from customers that accelerated their normal order patterns as a result of the Company's communications.











(3) As part of Project Renewal, the Company exited certain product lines in EMEA that negatively impacted first quarter 2014 sales by an estimated $6.3 million.



Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
David Doolittle
Vice President, Global Communications
(770) 418-7519

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From: Dr_of_Microcaps7/25/2014 12:22:29 AM
   of 128
 
Newell Rubbermaid to Acquire Contigo(R) and Avex(R) Beverage Container BrandsFirst Significant Acquisition Since 2008


Newell RubbermaidJuly 21, 2014 9:29 AM





ATLANTA, July 21, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) has signed a definitive agreement to acquire Ignite Holdings, LLC ("Ignite") from North Castle Partners, a leading private equity firm focused on consumer businesses that promote healthy, active and sustainable living.

Ignite is a leading designer and marketer of durable beverage containers sold under the Contigo and Avex brands. Ignite is expected to deliver $125 million of net sales in 2014 and has a strong growth track record in the on-the-go thermal and hydration beverage containers market, achieving a historical four year sales CAGR of 35 percent. The purchase price is $308 million, subject to customary working capital adjustments. The acquisition is expected to be accretive to Newell Rubbermaid's growth rate, normalized operating income margin and normalized EPS in the first year. Newell Rubbermaid plans to reinvest a portion of Ignite's profitability to more aggressively build the Contigo and Avex brands.

Newell Rubbermaid President and CEO Michael Polk said, "Ignite has a great track record of growth, establishing a leading share position in two of the fastest growing consumer durable categories in North America. Their commitment to leverage great design to deliver differentiated products is evident in their results. The acquisition of Ignite marks the next step in the Growth Game Plan as we transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company."

The acquired business will become part of the Home Solutions segment with Contigo and Avex joining the company's Rubbermaid(R), Calphalon(R), Goody(R) and Levolor(R) brands.

"Ignite's focus on design, product performance and constant innovation is a seamless fit with our Growth Game Plan strategy," said Mark Tarchetti, Chief Development Officer. "The Contigo brand has set the standard for the category and we are proud to make it part of our portfolio. This acquisition creates the opportunity to build a global beverage container business leveraging both the premium Contigo and mainstream Rubbermaid brands. We intend to invest behind the business to build on Ignite's current strong momentum, expanding product lines, channels of distribution and geographic footprint over time."

Sami El-Saden, CEO of Ignite, said "We are delighted to have found a long term strategic owner for the business who shares our pride in the achievements and strength of the company, but can bring a new level of investment and global perspective."

The acquisition is expected to be financed through a combination of organic cash flow and available borrowings and is expected to close by the end of the third quarter of 2014, subject to customary conditions and regulatory approvals. Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid on this transaction.

Additional information about the transaction is available under Events and Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

About Ignite

Ignite, a company with a passion for great products, is a global leader and recognized innovator in two of the fastest growing segments of the housewares industry: reusable, environmentally friendly thermal mugs and hydration bottles. Through its Contigo(R) and Avex(R) brands, Ignite has successfully created a diverse portfolio of innovative products that appeal to an extremely loyal and expanding consumer base. Ignite has a strong global presence and currently sells its products in over 50 countries across club, mass, sporting goods, specialty, direct-to-consumer, and exclusive strategic partnerships. Ignite is headquartered in Chicago, Il. For more information, visit www.gocontigo.com

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Forward-Looking Statements

This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Factors that may affect actual results include, but are not limited to: whether and when the required regulatory approvals will be obtained, whether and when the closing conditions will be satisfied and whether and when the transaction will close, whether and when the Company will be able to realize the expected financial results and accretive effect of the transaction, and how customers, competitors, suppliers and employees will react to the transaction. Please refer to the cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Quarterly Report on Form 10-Q as well as the risk factors set forth in Exhibit 99.1 thereto, for other factors that could affect our business.


Contact:
Nancy O'Donnell
Vice President, Investor Relations
+1 (770) 418-7723
David Doolittle
Vice President, Global Communications
+1 (770) 418-7519

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From: Dr_of_Microcaps7/31/2014 11:03:10 AM
   of 128
 
Newell Rubbermaid Announces Strong Second Quarter Results


Newell Rubbermaid4 hours ago





4.6% Core Sales Growth and Normalized EPS of $0.593.1% Net Sales Growth and Reported EPS of $0.54Reaffirms Full Year GuidanceSecond Quarter Executive Summary

3.1 percent net sales growth; 4.6 percent core sales growth, excluding foreign currency40.0 percent reported gross margin; 40.3 percent normalized gross margin14.0 percent reported operating margin; 15.8 percent normalized operating margin$0.54 reported EPS, up 45.9 percent versus prior year; $0.59 normalized EPS, up 18.0 percent versus prior yearSignificantly increased advertising investment to build brands and support new innovationRepurchased 3.9 million shares at a cost of $114.3 millionAgreed to acquire Ignite Holdings, LLC, a leading designer and marketer of on-the-go beverage containers under the Contigo(R) and Avex(R) brandsATLANTA, July 31, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its second quarter 2014 financial results.

"We have delivered very strong second quarter results across all key metrics," said Michael Polk, Newell Rubbermaid's President and Chief Executive Officer. "Outstanding top line performance in Writing, Tools and Commercial Products drove core sales growth of 4.6 percent. Normalized gross margin increased to 40.3 percent driven by pricing, productivity and positive mix. Normalized operating margin increased to 15.8 percent despite more than doubling our investment in advertising, and normalized EPS increased 18 percent to $0.59. These strong results give us increased confidence that our strategy of accelerating advertising and promotion in support of our brands is working. In fact, we now believe we are tracking toward the high end of our normalized EPS guidance range of $1.94 to $2.00 for the full year.

"Beyond an excellent set of results, we are very pleased with the recently announced agreement to acquire Ignite Holdings and its Contigo(R) and Avex(R) brands. Ignite has a proven design and innovation capability in the fast growing on-the-go beverage container market and has built a strong track record of growth. I am excited by the prospects of leveraging both our own investments in our new state-of-the-art design center and Ignite's capabilities to strengthen Newell Rubbermaid into a brand- and innovation-led company that is famous for design and product performance."

Second Quarter 2014 Operating Results

Net sales in the second quarter were $1.52 billion, compared with $1.47 billion in the prior year. Core sales, which exclude 150 basis points of negative foreign currency impact, grew 4.6 percent.

Reported gross margin was 40.0 percent. Normalized gross margin was 40.3 percent, an 80 basis point improvement versus prior year results. The benefits of pricing, productivity and positive mix more than offset inflation.

Second quarter reported operating margin was 14.0 percent compared with 12.6 percent in the prior year. Reported operating income was $213.4 million versus $185.4 million.

Normalized operating margin was 15.8 percent, compared with 14.9 percent in the prior year period. Normalized operating income was $239.8 million compared with $219.5 million in the prior year period. Second quarter 2014 normalized operating income excludes restructuring and restructuring-related costs of $22.0 million, $4.0 million of charges associated with the first turn of Venezuela inventory after the first quarter 2014 devaluation and $0.4 million of costs associated with the recall of harness buckles on select car seats. Second quarter 2013 normalized operating income excludes $34.1 million of restructuring and restructuring-related costs.

Both reported and normalized operating margins reflect gross margin expansion and significantly improved operating results in Writing, Tools and Commercial Products.

The reported tax rate was 25.8 percent versus 29.8 percent in the prior year period. The normalized tax rate was 27.2 percent compared with 26.6 percent in the prior year.

Reported net income was $150.6 million, compared with $109.8 million in the prior year. Reported diluted earnings per share were $0.54 compared with the prior year's $0.37 per diluted share. Increased sales, lower restructuring costs, a lower tax rate and the positive impact from a lower share count drove the improvement.

Normalized net income was $165.6 million, compared with $147.1 million in the prior year. Normalized diluted earnings per share of $0.59 compared with the prior year's $0.50. The year over year improvement was attributable to increased sales volume, gross margin expansion and the positive impact of a lower share count.

For the second quarter 2014, normalized diluted earnings per share excludes $0.06 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.01 per diluted share for the increased cost of products sold for the first turn of Venezuela inventory after the first quarter 2014 devaluation, $0.01 per diluted share of income tax benefits attributable to the resolution of tax contingencies and net income from discontinued operations of $0.01 per diluted share. For the second quarter 2013, normalized diluted earnings per share excludes $0.10 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, and a net loss (including impairments) from discontinued operations of $0.02 per diluted share. (A reconciliation of the "as reported" results to "normalized" results is included below.)

Operating cash flow was $96.2 million compared with $63.3 million in the prior year period.

A reconciliation of the second quarter 2014 and 2013 results is as follows:


Q2 2014*Q2 2013*



Diluted earnings per share (as reported)$0.54$0.37
Restructuring and restructuring-related costs0.060.10
Venezuela inventory turn0.01--
Resolution of income tax contingencies(0.01)--
Discontinued operations(0.01)0.02
Normalized EPS$0.59$0.50



*Totals may not add due to rounding
Second Quarter 2014 Operating Segment Results

Writing net sales for the second quarter were $502.6 million, a 5.2 percent increase compared to prior year. Core sales increased 8.9 percent, driven by pricing in Latin America and better than expected Back-to-School sell-in in anticipation of the company's planned heavy third quarter 2014 advertising, marketing, and merchandising programs. Normalized operating income was $133.6 million compared with $123.6 million in the prior year. Despite a significant increase in advertising investment, normalized operating margin increased 70 basis points to 26.6 percent driven by strong productivity and disciplined overhead management.

Home Solutions net sales were $388.9 million, a 2.6 percent decline compared to prior year. Core sales declined 1.8 percent, as share growth on Calphalon(R) and Rubbermaid(R) Food and Beverage was more than offset by declines on certain lower margin product lines. Operating income was $48.3 million, or 12.4 percent of sales, compared with $53.7 million, or 13.5 percent of sales, in the prior year. The decrease in operating margin was driven by input cost inflation and the deleveraging effect on margins from lower sales volumes, partially offset by productivity and overhead cost management.

Tools segment net sales were $222.3 million, a 12.3 percent improvement compared to prior year. Core sales increased 12.9 percent driven by strong volume growth on Irwin(R) in all geographic regions. Adjusting for the prior year pull forward of volume into the first quarter of 2013 related to the SAP conversion in Brazil, Tools global core sales increased 10.1 percent. Operating income was $29.9 million, or 13.5 percent of sales, compared with $18.3 million, or 9.2 percent of sales, in the prior year. The increase in operating margin was primarily driven by improved leverage of costs on higher sales volume, pricing and mix.

Commercial Products net sales were $223.5 million, a 9.8 percent increase compared to prior year. Core sales increased 9.9 percent attributable to pricing and very good volume growth on Rubbermaid Commercial Products(R) and the return to growth of Rubbermaid Healthcare(R) in North America. Operating income was $36.2 million, or 16.2 percent of sales, compared with $21.9 million, or 10.8 percent of sales, in the prior year period. The increase in operating margin reflects the benefits of pricing and strong productivity, partially offset by input cost inflation.

Baby & Parenting net sales were $183.7 million, a decline of 6.4 percent compared to prior year. Core sales declined 6.7 percent, as product line exits in Europe and competitive pressures in Japan more than offset slight growth in North America. Normalized operating income was $12.6 million, or 6.9 percent of sales, compared with $23.8 million, or 12.1 percent of sales, in the prior year. The decrease in normalized operating margin was largely due to geographical mix and the adverse impact of foreign currency.

Six Month Results

Net sales for the six months ended June 30, 2014 increased 1.4 percent to $2.75 billion, compared with $2.72 billion in the prior year. Core sales increased 2.8 percent for the six months with foreign currency adversely impacting net sales by 140 basis points.

Gross margin was 39.1 percent. Normalized gross margin was 39.6 percent.

Normalized operating margin of 13.6% was an increase of 40 basis points compared with 13.2% in the prior year. Reported operating margin improved by 120 basis points primarily driven by lower restructuring and restructuring-related costs.

Normalized earnings were $0.94 per diluted share compared with $0.85 per diluted share in the prior year. For the six months ended June 30, 2014, normalized diluted earnings per share exclude $0.11 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.03 per diluted share for costs of the recall of harness buckles on select car seats, $0.09 per diluted share resulting from the use of the SICAD I exchange rate for the company's Venezuelan operations, $0.01 per diluted share for the increased cost of products sold for the first turn of Venezuela inventory after the first quarter 2014 devaluation, $0.01 per diluted share of income tax benefits attributable to the resolution of tax contingencies, and net income from discontinued operations of $0.01 per diluted share. For the six months ended June 30, 2013, normalized diluted earnings per share exclude $0.23 per diluted share for restructuring and restructuring-related costs associated with Project Renewal, $0.02 per diluted share resulting from the currency devaluation in Venezuela, $0.02 per diluted share of income tax benefits attributable to the resolution of tax contingencies, and a net loss (including impairments) from discontinued operations of $0.06 per diluted share. (A reconciliation of the "as reported" results to "normalized" results is included below.)

Net income, as reported, was $203.5 million, or $0.72 per diluted share. This compares with $164.0 million, or $0.56 per diluted share, in the prior year.

Operating cash flow was $4.1 million during the first six months of 2014 compared with a use of $59.8 million in the prior year.

A reconciliation of the six month 2014 and 2013 results is as follows:




YTD Q2 2014YTD Q2 2013



Diluted earnings per share (as reported)$0.72$0.56



Restructuring and restructuring-related costs0.110.23



Costs associated with harness buckle recall0.03--



Currency devaluation -- Venezuela0.090.02



Venezuela inventory turn0.01--



Resolution of income tax contingencies(0.01)(0.02)



(Income) loss from discontinued operations(0.01)0.06



Normalized EPS$0.94$0.85



2014 Full Year Outlook

Newell Rubbermaid reaffirmed its full year guidance metrics:

Core sales growth of 3 to 4 percent;Normalized operating margin improvement of up to 40 basis points;Normalized EPS of $1.94 to $2.00; andOperating cash flow between $600 and $650 million.The company now expects foreign exchange to have a negative impact of about 150 basis points on 2014 net sales and $0.12 to $0.14 per diluted share on normalized EPS. The impact on reported EPS is expected to be a negative $0.22 to $0.24 per diluted share due to the $0.10 charge included in reported EPS related to the adoption of the SICAD I rate for the company's Venezuelan operations. Subsequent to the first quarter, the company began using the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela's SICAD I exchange mechanism (approximately 10.0 to 11.0 Bolivars per U.S. dollar).

The 2014 normalized EPS guidance range excludes between $100 and $120 million of Project Renewal restructuring and restructuring-related charges. (A reconciliation of "expected reported" results to "normalized" results is included below.)

The company is on track to realize cumulative annualized cost savings of $270 to $325 million by the second quarter of 2015 related to Project Renewal. The majority of these savings is expected to be reinvested in the business to strengthen brand building and selling capabilities to accelerate growth.

Operating cash flow guidance assumes $100 to $120 million in restructuring and restructuring-related cash payments. Capital expenditures are projected at $150 to $175 million.

A reconciliation of the 2014 earnings outlook is as follows:



FY 2014


Diluted earnings per share$1.50 to $1.56


Restructuring and restructuring-related costs0.29 to 0.37


Costs associated with harness buckle recall0.03


Currency devaluation -- Venezuela0.09


Venezuela inventory turn0.01


Resolution of income tax contingencies(0.01)


Income from discontinued operations(0.01)


Normalized EPS$1.94 to $2.00
Conference Call

The company's second quarter 2014 earnings conference call will be held today, July 31, 2014, at 8:00 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The webcast will be available for replay. A supporting slide presentation will be made available in the Investor Relations section on the company's Web site under Quarterly Earnings.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission and includes a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

The company uses certain financial measures that are included in this press release and the additional financial information both in explaining its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The company's management believes that these measures - including those that are "non-GAAP financial measures" - and the information they provide are useful to investors since these measures (a) permit investors to view the company's performance using the same tools that management uses to evaluate the company's past performance, reportable business segments and prospects for future performance and (b) determine certain elements of management's incentive compensation.

The company's management believes that core sales, as reflected in the Currency Analysis, is useful to investors because it demonstrates the effect of foreign currency on reported sales. The effect of foreign currency on reported sales is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference in these two amounts being the change in core sales and the difference between the change in as reported sales and the change in core sales reported as the currency impact. The company believes that providing adjusted core sales excluding the impacts of product line exits and timing shifts related to implementations of SAP is useful in that it helps investors understand underlying business trends. The company's management believes that "normalized" gross margin, "normalized" SG&A expense, "normalized" operating income and "normalized" tax rates, which exclude restructuring and restructuring-related expenses and one-time events such as costs related to product recalls, the extinguishment of debt, certain tax benefits and charges, impairment charges, discontinued operations and certain other items, are useful because they provide investors with a meaningful perspective on the current underlying performance of the company's core ongoing operations. The company's management believes that "normalized" earnings per share, which also excludes restructuring and restructuring-related charges and one-time events such as losses related to product recalls, asset devaluations resulting from the adoption of the SICAD I Venezuelan Bolivar exchange rate, the extinguishments of debt, tax benefits and charges, impairment charges, discontinued operations and certain other items, is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance. The company also uses core sales, normalized gross margin and normalized earnings per share as the three performance criteria in its management cash bonus plan.

The company determines the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.

While the company believes that these non-GAAP financial measures are useful in evaluating the company's performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

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 sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, changes in exchange rates, product recalls and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "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, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; product liability, product recalls or regulatory actions (including any fines or penalties resulting from governmental investigations into the circumstances related thereto); our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; a failure of one of our key information technology systems or related controls; the potential inability to attract, retain and motivate key employees; future events that could adversely affect the value of our assets and require impairment charges; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations; with respect to the Ignite Holdings, LLC transaction, whether and when the required regulatory approvals will be obtained, whether and when the transaction closes, as well as our ability to realize the expected financial results of the transaction; and those factors listed in our most recently filed Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, and Exhibit 99.1 thereto. 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.

Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)







Three Months Ended June 30,



YOY

20142013% Change




Net sales$ 1,521.0$ 1,474.73.1%
Cost of products sold912.6892.0




GROSS MARGIN608.4582.74.4%
% of sales40.0%39.5%




Selling, general & administrative expenses383.5365.35.0%
% of sales25.2%24.8%




Restructuring costs11.532.0




OPERATING INCOME213.4185.415.1%
% of sales14.0%12.6%




Nonoperating expenses:


Interest expense, net15.015.0
Other (income) expense, net(2.6)4.2

12.419.2(35.4)%




INCOME BEFORE INCOME TAXES201.0166.220.9%
% of sales13.2%11.3%




Income taxes51.949.64.6%
Effective rate25.8%29.8%




NET INCOME FROM CONTINUING OPERATIONS149.1116.627.9%
% of sales9.8%7.9%




Income (loss) from discontinued operations, net of tax1.5(6.8)




NET INCOME$ 150.6$ 109.837.2%

9.9%7.4%




EARNINGS PER SHARE:


Basic


Income from continuing operations$ 0.54$ 0.40
Income (loss) from discontinued operations$ 0.01$ (0.02)
Net income$ 0.54$ 0.38




Diluted


Income from continuing operations$ 0.53$ 0.40
Income (loss) from discontinued operations$ 0.01$ (0.02)
Net income$ 0.54$ 0.37




AVERAGE SHARES OUTSTANDING:


Basic277.4290.9
Diluted279.7294.3




Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)







Six Months Ended June 30,



YOY

20142013% Change




Net sales$ 2,753.2$ 2,715.51.4%
Cost of products sold1,675.51,659.2




GROSS MARGIN1,077.71,056.32.0%
% of sales39.1%38.9%




Selling, general & administrative expenses735.6706.74.1%
% of sales26.7%26.0%




Restructuring costs23.566.4




OPERATING INCOME318.6283.212.5%
% of sales11.6%10.4%




Nonoperating expenses:


Interest expense, net29.429.6
Other expense, net37.417.2

66.846.842.7%




INCOME BEFORE INCOME TAXES251.8236.46.5%
% of sales9.1%8.7%




Income taxes50.656.0(9.6)%
Effective rate20.1%23.7%




NET INCOME FROM CONTINUING OPERATIONS201.2180.411.5%
% of sales7.3%6.6%




Income (loss) from discontinued operations, net of tax2.3(16.4)




NET INCOME$ 203.5$ 164.024.1%

7.4%6.0%




EARNINGS PER SHARE:


Basic


Income from continuing operations$ 0.72$ 0.62
Income (loss) from discontinued operations$ 0.01$ (0.06)
Net income$ 0.73$ 0.56




Diluted


Income from continuing operations$ 0.71$ 0.61
Income (loss) from discontinued operations$ 0.01$ (0.06)
Net income$ 0.72$ 0.56




AVERAGE SHARES OUTSTANDING:


Basic279.1290.4
Diluted281.7293.7









Newell Rubbermaid Inc.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
CERTAIN LINE ITEMS
(in millions, except per share data)










Three Months Ended June 30, 2014

GAAP Measure
Restructuring andInventory charge

Non-GAAP Measure


Productrestructuring-relatedfrom the devaluation of theDiscontinuedNon-recurring
Percentage

Reportedrecall costs (1)costs (2)Venezuelan Bolivar (3)operations (4)tax items (5)Normalized*of Sales









Cost of products sold$ 912.6$ --$ (0.2)$ (4.0)$ --$ --$ 908.459.7%









Gross margin$ 608.4$ --$ 0.2$ 4.0$ --$ --$ 612.640.3%









Selling, general & administrative expenses$ 383.5$ (0.4)$ (10.3)$ --$ --$ --$ 372.824.5%









Operating income$ 213.4$ 0.4$ 22.0$ 4.0$ --$ --$ 239.815.8%









Income before income taxes$ 201.0$ 0.4$ 22.0$ 4.0$ --$ --$ 227.4









Income taxes (6)$ 51.9$ 0.2$ 5.0$ 1.4$ --$ 3.3$ 61.8









Net income from continuing operations$ 149.1$ 0.2$ 17.0$ 2.6$ --$ (3.3)$ 165.6









Net income$ 150.6$ 0.2$ 17.0$ 2.6$ (1.5)$ (3.3)$ 165.6









Diluted earnings per share**$ 0.54$ 0.00$ 0.06$ 0.01$ (0.01)$ (0.01)$ 0.59



















Three Months Ended June 30, 2013



GAAP MeasureRestructuring and
Non-GAAP Measure




restructuring-relatedDiscontinued
Percentage



Reportedcosts (2)operations (4)Normalized*of Sales




















Selling, general & administrative expenses$ 365.3$ (2.1)$ --$ 363.224.6%











Operating income$ 185.4$ 34.1$ --$ 219.514.9%











Income before income taxes$ 166.2$ 34.1$ --$ 200.3












Income taxes (6)$ 49.6$ 3.6$ --$ 53.2












Net income from continuing operations$ 116.6$ 30.5$ --$ 147.1












Net income$ 109.8$ 30.5$ 6.8$ 147.1












Diluted earnings per share**$ 0.37$ 0.10$ 0.02$ 0.50





















* Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.
**Totals may not add due to rounding.









(1) During the three months ended June 30, 2014, the Company recognized a $0.4 million charge associated with the Graco product recall.









(2) Restructuring and restructuring-related costs during the three months ended June 30, 2014 include $10.5 million of organizational change implementation and restructuring-related costs and $11.5 million of restructuring costs incurred in connection with Project Renewal. Restructuring and restructuring-related costs during the three months ended June 30, 2013 include $2.1 million of organizational change implementation and restructuring-related costs and $32.0 million of restructuring costs incurred in connection with Project Renewal.









(3) During the three months ended June 30, 2014, the Company recognized $4.0 million of cost of products sold associated with the first turn of inventory after the devaluation of the Venezuelan Bolivar that occurred during the three months ended March 31, 2014.









(4) During the three months ended June 30, 2014, the Company recognized net income of $1.5 million in discontinued operations. During the three months ended June 30, 2013, the Company recognized a net loss, including impairments, of $6.8 million in discontinued operations relating to the operations of the Hardware and Teach businesses.









(5) During the three months ended June 30, 2014, the Company recognized a non-recurring income tax benefit of $3.3 million resulting from the resolution of various income tax contingencies.









(6) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.










Newell Rubbermaid Inc.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
CERTAIN LINE ITEMS
(in millions, except per share data)











Six Months Ended June 30, 2014

GAAP Measure
Restructuring andCharge resultingInventory charge

Non-GAAP Measure


Productrestructuring-relatedfrom the devaluation of thefrom the devaluation of theDiscontinuedNon-recurring
Percentage

Reportedrecall costs (1)costs (2)Venezuelan Bolivar (3)Venezuelan Bolivar (4)operations (5)tax items (6)Normalized*of Sales










Cost of products sold$ 1,675.5$ (8.6)$ (0.2)$ --$ (4.0)$ --$ --$ 1,662.760.4%










Gross margin$ 1,077.7$ 8.6$ 0.2$ --$ 4.0$ --$ --$ 1,090.539.6%










Selling, general & administrative expenses$ 735.6$ (2.8)$ (18.0)$ --$ --$ --$ --$ 714.826.0%










Operating income$ 318.6$ 11.4$ 41.7$ --$ 4.0$ --$ --$ 375.713.6%










Nonoperating expenses$ 66.8$ --$ --$ (38.7)$ --$ --$ --$ 28.1










Income before income taxes$ 251.8$ 11.4$ 41.7$ 38.7$ 4.0$ --$ --$ 347.6










Income taxes (7)$ 50.6$ 4.2$ 10.5$ 13.9$ 1.4$ --$ 3.3$ 83.9










Net income from continuing operations$ 201.2$ 7.2$ 31.2$ 24.8$ 2.6$ --$ (3.3)$ 263.7










Net income$ 203.5$ 7.2$ 31.2$ 24.8$ 2.6$ (2.3)$ (3.3)$ 263.7










Diluted earnings per share**$ 0.72$ 0.03$ 0.11$ 0.09$ 0.01$ (0.01)$ (0.01)$ 0.94





















Six Months Ended June 30, 2013


GAAP MeasureRestructuring andCharge resulting

Non-GAAP Measure



restructuring-relatedfrom the devaluation of theDiscontinuedNon-recurring
Percentage


Reportedcosts (2)Venezuelan Bolivar (3)operations (5)tax items (6)Normalized*of Sales





















Selling, general & administrative expenses$ 706.7$ (8.7)$ --$ --$ --$ 698.025.7%











Operating income$ 283.2$ 75.1$ --$ --$ --$ 358.313.2%











Nonoperating expenses$ 46.8$ --$ (11.1)$ --$ --$ 35.7












Income before income taxes$ 236.4$ 75.1$ 11.1$ --$ --$ 322.6












Income taxes (7)$ 56.0$ 8.5$ 4.1$ --$ 4.8$ 73.4












Net income from continuing operations$ 180.4$ 66.6$ 7.0$ --$ (4.8)$ 249.2












Net income$ 164.0$ 66.6$ 7.0$ 16.4$ (4.8)$ 249.2












Diluted earnings per share**$ 0.56$ 0.23$ 0.02$ 0.06$ (0.02)$ 0.85






















* Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.
**Totals may not add due to rounding.










(1) During the six months ended June 30, 2014, the Company recognized an $11.4 million charge associated with the Graco product recall.










(2) Restructuring and restructuring-related costs during the six months ended June 30, 2014 include $18.2 million of organizational change implementation and restructuring-related costs and $23.5 million of restructuring costs incurred in connection with Project Renewal. Restructuring and restructuring-related costs during the six months ended June 30, 2013 include $8.7 million of organizational change implementation and restructuring-related costs and $66.4 million of restructuring costs incurred in connection with Project Renewal.










(3) During the six months ended June 30, 2014 and 2013, the Company recognized foreign exchange losses of $38.7 million and $11.1 million, respectively, resulting from the devaluation of the Venezuelan Bolivar, which under hyperinflationary accounting is recorded in the Statement of Operations.










(4) During the six months ended June 30, 2014, the Company recognized $4.0 million of cost of products sold associated with the first turn of inventory after the devaluation of the Venezuelan Bolivar that occurred during the three months ended March 31, 2014.










(5) During the six months ended June 30, 2014, the Company recognized net income of $2.3 million in discontinued operations. During the six months ended June 30, 2013, the Company recognized a net loss, including impairments, of $16.4 million in discontinued operations relating to the operations of the Hardware and Teach businesses.










(6) During the six months ended June 30, 2014 and 2013, the Company recognized non-recurring income tax benefits of $3.3 million and $4.8 million, respectively, resulting from the resolution of various income tax contingencies.










(7) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.



Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)




June 30,June 30,
Assets:20142013



Cash and cash equivalents$ 142.7$ 154.1
Accounts receivable, net1,230.41,215.3
Inventories, net811.8884.7
Deferred income taxes135.5155.9
Prepaid expenses and other138.2190.2



Total Current Assets2,458.62,600.2



Property, plant and equipment, net543.0533.4
Goodwill2,358.32,346.4
Other intangible assets, net596.7638.0
Other assets261.5284.9



Total Assets$ 6,218.1$ 6,402.9



Liabilities and Stockholders' Equity:




Accounts payable$ 592.9$ 658.1
Accrued compensation121.8125.0
Other accrued liabilities631.0645.1
Short-term debt389.4412.4
Current portion of long-term debt251.30.8



Total Current Liabilities1,986.41,841.4



Long-term debt1,424.21,669.0
Other noncurrent liabilities703.9852.0



Stockholders' Equity - Parent2,100.12,037.0
Stockholders' Equity - Noncontrolling Interests3.53.5



Total Stockholders' Equity2,103.62,040.5



Total Liabilities and Stockholders' Equity$ 6,218.1$ 6,402.9



Newell Rubbermaid Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in millions)




Six Months Ended June 30,

20142013
Operating Activities:

Net income$ 203.5$ 164.0
Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization75.779.6
Net (gain) loss from sale of discontinued operations, including impairments(4.8)22.7
Non-cash restructuring costs3.72.2
Deferred income taxes6.047.0
Stock-based compensation expense14.519.7
Other, net50.818.4
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:

Accounts receivable(122.4)(125.1)
Inventories(123.2)(201.7)
Accounts payable33.2135.0
Accrued liabilities and other(132.9)(221.6)
Net cash provided by (used in) operating activities$ 4.1$ (59.8)



Investing Activities:

Proceeds from sale of discontinued operations and noncurrent assets$ 3.4$ --
Capital expenditures(67.0)(57.0)
Other(0.3)(0.3)
Net cash used in investing activities$ (63.9)$ (57.3)



Financing Activities:

Net short-term borrowings$ 215.4$ 202.1
Repurchase and retirement of shares of common stock(158.7)(72.4)
Cash dividends(89.8)(88.1)
Excess tax benefits related to stock-based compensation6.89.7
Other stock-based compensation activity, net29.639.2
Net cash provided by financing activities$ 3.3$ 90.5



Currency rate effect on cash and cash equivalents$ (27.1)$ (3.1)



Decrease in cash and cash equivalents$ (83.6)$ (29.7)
Cash and cash equivalents at beginning of period226.3183.8
Cash and cash equivalents at end of period$ 142.7$ 154.1















Newell Rubbermaid Inc.
Financial Worksheet- Segment Reporting
(In Millions)
















20142013





Reconciliation (1,2)

Reconciliation (1)
Year-over-year changes


ReportedExcludedNormalizedOperating
ReportedExcludedNormalizedOperatingNet SalesNormalized OI

Net SalesOIItemsOIMarginNet SalesOIItemsOIMargin$%$%
Q1:













Writing$ 361.3$ 77.1$ --$ 77.121.3%$ 340.6$ 63.2$ --$ 63.218.6%$ 20.76.1%$ 13.922.0%
Home Solutions321.226.3--26.38.2%338.934.1--34.110.1%(17.7)(5.2)%(7.8)(22.9)%
Tools187.821.4--21.411.4%188.618.7--18.79.9%(0.8)(0.4)%2.714.4%
Commercial Products182.613.8--13.87.6%183.121.6--21.611.8%(0.5)(0.3)%(7.8)(36.1)%
Baby & Parenting179.35.411.016.49.1%189.623.9--23.912.6%(10.3)(5.4)%(7.5)(31.4)%
Restructuring Costs--(12.0)12.0--
--(34.4)34.4--
--
--
Corporate--(26.8)7.7(19.1)
--(29.3)6.6(22.7)
--
3.615.9%
Total$ 1,232.2$ 105.2$ 30.7$ 135.911.0%$ 1,240.8$ 97.8$ 41.0$ 138.811.2%$ (8.6)(0.7)%$ (2.9)(2.1)%































20142013





Reconciliation (1,2,3)

Reconciliation (1)
Year-over-year changes


ReportedExcludedNormalizedOperating
ReportedExcludedNormalizedOperatingNet SalesNormalized OI

Net SalesOIItemsOIMarginNet SalesOIItemsOIMargin$%$%
Q2:













Writing$ 502.6$ 129.6$ 4.0$ 133.626.6%$ 477.8$ 123.6$ --$ 123.625.9%$ 24.85.2%$ 10.08.1%
Home Solutions388.948.3--48.312.4%399.153.7--53.713.5%(10.2)(2.6)%(5.4)(10.1)%
Tools222.329.9--29.913.5%198.018.3--18.39.2%24.312.3%11.663.4%
Commercial Products223.536.2--36.216.2%203.621.9--21.910.8%19.99.8%14.365.3%
Baby & Parenting183.712.20.412.66.9%196.223.8--23.812.1%(12.5)(6.4)%(11.2)(47.1)%
Restructuring Costs--(11.5)11.5--
--(32.0)32.0--
--
--
Corporate--(31.3)10.5(20.8)
--(23.9)2.1(21.8)
--
1.04.6%
Total$ 1,521.0$ 213.4$ 26.4$ 239.815.8%$ 1,474.7$ 185.4$ 34.1$ 219.514.9%$ 46.33.1%$ 20.39.2%
















20142013





Reconciliation (1,2,3)

Reconciliation (1)
Year-over-year changes


ReportedExcludedNormalizedOperating
ReportedExcludedNormalizedOperatingNet SalesNormalized OI

Net SalesOIItemsOIMarginNet SalesOIItemsOIMargin$%$%
YTD:













Writing$ 863.9$ 206.7$ 4.0$ 210.724.4%$ 818.4$ 186.8$ --$ 186.822.8%$ 45.55.6%$ 23.912.8%
Home Solutions710.174.6--74.610.5%738.087.8--87.811.9%(27.9)(3.8)%(13.2)(15.0)%
Tools410.151.3--51.312.5%386.637.0--37.09.6%23.56.1%14.338.6%
Commercial Products406.150.0--50.012.3%386.743.5--43.511.2%19.45.0%6.514.9%
Baby & Parenting363.017.611.429.08.0%385.847.7--47.712.4%(22.8)(5.9)%(18.7)(39.2)%
Restructuring Costs--(23.5)23.5--
--(66.4)66.4--
--
--
Corporate--(58.1)18.2(39.9)
--(53.2)8.7(44.5)
--
4.610.3%
Total$ 2,753.2$ 318.6$ 57.1$ 375.713.6%$ 2,715.5$ 283.2$ 75.1$ 358.313.2%$ 37.71.4%$ 17.44.9%















(1) Excluded items consist of organizational change implementation, restructuring-related, and restructuring costs. Organizational change implementation and restructuring-related costs of $18.2 million and restructuring costs of $23.5 million incurred during 2014 relate to Project Renewal. For 2013, organizational change implementation and restructuring-related costs of $8.7 million and restructuring costs of $66.4 million relate to Project Renewal.















(2) Baby & Parenting normalized operating income for 2014 excludes charges of $11.4 million relating to the Graco product recall.















(3) Writing normalized operating income for 2014 excludes charges of $4.0 million associated with the first turn of Venezuelan inventory after the devaluation of the Venezuelan Bolivar.











Newell Rubbermaid Inc.









Three Months Ended June 30, 2014








In Millions




















Currency Analysis































By Segment





















Net Sales, As ReportedCore Sales (1)
Year-Over-Year Increase (Decrease)



Increase

IncreaseCurrencyExcludingIncludingCurrency

20142013(Decrease)20142013(Decrease)ImpactCurrencyCurrencyImpact











Writing$ 502.6$ 477.8$ 24.8$ 522.1$ 479.5$ 42.6$ (17.8)8.9%5.2%(3.7)%
Home Solutions388.9399.1(10.2)391.6398.8(7.2)(3.0)(1.8)%(2.6)%(0.8)%
Tools222.3198.024.3223.5198.025.5(1.2)12.9%12.3%(0.6)%
Commercial Products223.5203.619.9224.1204.020.1(0.2)9.9%9.8%(0.1)%
Baby & Parenting183.7196.2(12.5)184.2197.5(13.3)0.8(6.7)%(6.4)%0.3%











Total Company$ 1,521.0$ 1,474.7$ 46.3$ 1,545.5$ 1,477.8$ 67.7$ (21.4)4.6%3.1%(1.5)%






















By Geography




















United States$ 1,054.5$ 1,016.1$ 38.4$ 1,054.5$ 1,016.1$ 38.4$ --3.8%3.8%0.0%
Canada76.983.4(6.5)81.983.0(1.1)(5.4)(1.3)%(7.8)%(6.5)%
Total North America1,131.41,099.531.91,136.41,099.137.3(5.4)3.4%2.9%(0.5)%











Europe, Middle East and Africa188.8181.47.4184.3185.7(1.4)8.8(0.8)%4.1%4.9%
Latin America102.884.218.6123.983.440.5(21.9)48.6%22.1%(26.5)%
Asia Pacific98.0109.6(11.6)100.9109.6(8.7)(2.9)(7.9)%(10.6)%(2.7)%
Total International389.6375.214.4409.1378.730.4(16.0)8.0%3.8%(4.2)%











Total Company$ 1,521.0$ 1,474.7$ 46.3$ 1,545.5$ 1,477.8$ 67.7$ (21.4)4.6%3.1%(1.5)%











Core Sales Excluding Brazil SAP










2014 Core2013 CoreBrazil SAP2013 Core Sales
Core Sales Increase




Sales (1)Sales (1)Conversion (2)Excl. Brazil SAP (2)IncreaseExcl. Brazil SAP (2)














Tools$ 223.5$ 198.0$ 5.0$ 203.0$ 20.510.1%

























(1) "Core Sales" is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference between the change in "As Reported" sales and the change in "Core Sales" reported in the table as "Currency Impact".











(2) In contemplation of the Brazil SAP conversion in April 2013, the Company communicated with key customers about their interest in accelerating orders to mitigate the risk of potential business disruption. The Company estimated the impact of the timing shift related to the Brazil SAP conversion by tracking orders from customers that accelerated their normal order patterns as a result of the Company's communications.











Newell Rubbermaid Inc.









Six Months Ended June 30, 2014









In Millions




















Currency Analysis































By Segment





















Net Sales, As ReportedCore Sales (1)
Year-Over-Year Increase (Decrease)



Increase

IncreaseCurrencyExcludingIncludingCurrency

20142013(Decrease)20142013(Decrease)ImpactCurrencyCurrencyImpact











Writing$ 863.9$ 818.4$ 45.5$ 886.6$ 817.1$ 69.5$ (24.0)8.5%5.6%(2.9)%
Home Solutions710.1738.0(27.9)714.7737.0(22.3)(5.6)(3.0)%(3.8)%(0.8)%
Tools410.1386.623.5413.7383.829.9(6.4)7.8%6.1%(1.7)%
Commercial Products406.1386.719.4407.2386.820.4(1.0)5.3%5.0%(0.3)%
Baby & Parenting363.0385.8(22.8)364.1385.7(21.6)(1.2)(5.6)%(5.9)%(0.3)%











Total Company$ 2,753.2$ 2,715.5$ 37.7$ 2,786.3$ 2,710.4$ 75.9$ (38.2)2.8%1.4%(1.4)%






















By Geography




















United States$ 1,885.7$ 1,835.0$ 50.7$ 1,885.7$ 1,835.0$ 50.7$ --2.8%2.8%0.0%
Canada129.9145.2(15.3)138.4143.7(5.3)(10.0)(3.7)%(10.5)%(6.8)%
Total North America2,015.61,980.235.42,024.11,978.745.4(10.0)2.3%1.8%(0.5)%











Europe, Middle East and Africa353.0348.54.5343.8353.7(9.9)14.4(2.8)%1.3%4.1%
Latin America194.8177.417.4221.7172.349.4(32.0)28.7%9.8%(18.9)%
Asia Pacific189.8209.4(19.6)196.7205.7(9.0)(10.6)(4.4)%(9.4)%(5.0)%
Total International737.6735.32.3762.2731.730.5(28.2)4.2%0.3%(3.9)%











Total Company$ 2,753.2$ 2,715.5$ 37.7$ 2,786.3$ 2,710.4$ 75.9$ (38.2)2.8%1.4%(1.4)%






















(1) "Core Sales" is determined by applying a fixed exchange rate, calculated as the 12-month average in 2013, to the current and prior year local currency sales amounts, with the difference between the change in "As Reported" sales and the change in "Core Sales" reported in the table as "Currency Impact".



Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
David Doolittle
Vice President, Global Communications
(770) 418-7519

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From: Dr_of_Microcaps10/19/2014 2:57:02 PM
   of 128
 
Newell Rubbermaid October 17, 2014 9:15 AM GlobeNewswire

ATLANTA, Oct. 17, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) announced today that it has signed a definitive agreement to acquire the assets of bubba brands, inc. ("bubba"), a wholly owned subsidiary of In Zone Holdings, Inc.

A leading designer and marketer of durable beverage containers, bubba is expected to deliver over $50 million of net sales in 2014. The acquisition will expand Newell Rubbermaid's presence in on-the-go thermal and hydration beverageware, leveraging the company's recent acquisition of the Contigo(R) and Avex(R) brands, and is expected to be accretive to Newell Rubbermaid's net sales growth rate, normalized operating income margin and normalized EPS within the first year.

Newell Rubbermaid President and CEO Michael Polk said, "The acquisition of bubba further strengthens our position as a leader in one of the fastest-growing consumer durables categories in North America. We are excited to add this innovative brand to the portfolio. In combination with the Contigo, Avex and Rubbermaid(R) brands, the agreement to acquire bubba represents a tremendous opportunity to strengthen our growth agenda as we drive our Growth Game Plan strategy into action."

The acquisition will be financed through organic cash flow and available borrowings and is expected to close this month, subject to customary closing conditions. Additional details will be provided during the company's third quarter 2014 earnings call on October 31.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Contigo(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Factors that may affect actual results include, but are not limited to: whether and when the closing conditions will be satisfied and whether and when the transaction will close, whether and when the Company will be able to realize the expected financial results and accretive effect of the transaction, and how customers, competitors, suppliers and employees will react to the transaction. Please refer to the cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Quarterly Report on Form 10-Q as well as the risk factors set forth in Exhibit 99.1 thereto, for other factors that could affect our business.



Consumer DiscretionaryMergers, Acquisitions & TakeoversNewell Rubbermaid
Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
Nicole Quinlan
Senior Manager, Corporate Communications
(770) 418-7251

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From: Dr_of_Microcaps12/1/2014 2:28:54 PM
   of 128
 
Newell Rubbermaid to Acquire Baby Jogger Holdings, Inc.

Newell Rubbermaid 5 hours ago GlobeNewswire


ATLANTA, Dec. 1, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) announced today it has signed a definitive agreement to acquire Baby Jogger Holdings, Inc. ("Baby Jogger") from The Riverside Company, a global private equity firm. Baby Jogger is a leading designer and marketer of branded infant and juvenile products focused on premium and activity strollers and related accessories. Founded in 1984 and located in Richmond, Virginia, the company has built a strong reputation thanks to its full line of award-winning functional products designed for active and on-the-go parents. The company's City Mini(R) stroller continues to set the standard in the premium space with its lightweight, sleek and award-winning design and patented one-handed fold.

Baby Jogger is expected to deliver approximately $90 million of net sales in 2014 and has a strong growth track record. The purchase price is approximately $210 million, subject to customary working capital and transaction adjustments. The acquisition is expected to be accretive to Newell Rubbermaid's growth rate and normalized EPS in the first year.

Newell Rubbermaid President and CEO Michael Polk said, "Baby Jogger has a great track record of growth and innovation, and their City Mini(R), City Select(R) and other sub-brands in the premium stroller category are perfect complements to our Graco stroller business. Baby Jogger sells its products in more than 70 countries around the world and will help us transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company."

The acquired business will become part of the Baby & Parenting segment with Baby Jogger joining the company's Graco(R) and Aprica(R) businesses.

"Baby Jogger is a leader in the premium stroller market, and is the product of choice for modern, urban, active parents who appreciate Baby Jogger's quality, design, and innovative features, such as their Quick-Fold technology," said Mark Tarchetti, Newell Rubbermaid's Chief Development Officer. "The Baby Jogger brand and product sub-brands are very well known around the world. We see this as a great opportunity to grow our business in the premium space, and expand our geographic footprint, both of which will further accelerate our growth under the Growth Game Plan."

Mark Zehfuss, CEO of Baby Jogger, said "We are delighted to have found a long term strategic owner for the business who shares our pride in the achievements and vision of the company, but can bring a new level of investment and broad juvenile products expertise."

The acquisition is expected to be financed through a combination of organic cash flow and available borrowings and is expected to close by the end of the fourth quarter of 2014, subject to customary conditions and regulatory approvals. Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid on this transaction.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Contigo(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Factors that may affect actual results include, but are not limited to: whether and when the closing conditions will be satisfied and whether and when the transaction will close, whether and when the Company will be able to realize the expected financial results and accretive effect of the transaction, and how customers, competitors, suppliers and employees will react to the transaction. Please refer to the cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Quarterly Report on Form 10-Q as well as the risk factors set forth in Exhibit 99.1 thereto, for other factors that could affect our business.



Consumer DiscretionaryInvestment & Company InformationNewell Rubbermaid
Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
Nicole Quinlan
Senior Manager, Corporate Communications

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From: Dr_of_Microcaps12/17/2014 12:12:42 PM
   of 128
 
Newell Rubbermaid Announces Closing of Baby Jogger Holdings, Inc. Acquisition

Newell Rubbermaid December 16, 2014 7:30 AM GlobeNewswire


ATLANTA, Dec. 16, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) announced today that it has completed the acquisition of Baby Jogger Holdings, Inc. ("Baby Jogger") from the Riverside Company, a global private equity firm. Baby Jogger is a leading designer and marketer of premium infant and juvenile products focused on activity strollers and related accessories. The company has a strong growth track record and is expected to deliver approximately $90 million of net sales in 2014. The purchase price of $210 million represents approximately 12 times estimated 2014 EBITDA before synergies and any potential tax benefits. The acquisition is expected to be accretive to Newell Rubbermaid's growth rate, EBITDA margin and normalized EPS in the first year.

"I am very pleased to add this strategic asset to our Baby & Parenting portfolio," said Newell Rubbermaid President and CEO Michael Polk. "In combination with Graco and Aprica, Baby Jogger and its City Mini(R) and City Select(R) sub-brands offer compelling growth opportunities which will further establish Newell Rubbermaid as a global leader in juvenile products as we drive the Growth Game Plan into action."

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.6 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Contigo(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

This news release contains forward-looking information based on management's current views and assumptions regarding the anticipated benefits of the transaction, including Baby Jogger's financial contribution to the Company's financial results, and the Company's expected investments in the Baby Jogger business. Actual events may differ materially. Factors that may affect actual results include, but are not limited to, the ability of the Company to integrate the Baby Jogger business with the Company's existing businesses and realize the expected financial results and accretive effect of the transaction, and reaction of the Company's customers, competitors, suppliers and employees to the transaction. Please refer to the cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Quarterly Report on Form 10-Q as well as the risk factors set forth in Exhibit 99.1 thereto, for other factors that could affect our business.



Consumer DiscretionaryInvestment & Company InformationNewell RubbermaidRiverside Company
Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
Nicole Quinlan
Senior Manager, Corporate Communications
(770) 418-7251

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From: Dr_of_Microcaps3/25/2015 12:58:20 AM
   of 128
 
Newell Rubbermaid Announces Agreement for Sale of Endicia Online Shipping Business to Stamps.com

Newell Rubbermaid8 hours ago GlobeNewswire

ATLANTA, March 24, 2015 (GLOBE NEWSWIRE) -- Newell Rubbermaid Inc. ( NWL) today announced it has entered into a definitive agreement to sell Endicia, a developer of global online shipping solutions, to Stamps.com, a leading provider of online postage solutions based in El Segundo, CA.

2014 adjusted sales for Endicia were approximately $59 million and were included in income from discontinued operations. The purchase price is approximately $215 million, subject to customary working capital and transaction adjustments. The transaction is expected to close by the end of 2015, subject to certain customary conditions, including regulatory approvals. Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid on the transaction.

"The announced sale of our Endicia business furthers our strategy of strengthening and focusing our portfolio to create a faster growing, higher margin business," said Michael Polk, Newell Rubbermaid President and Chief Executive Officer. "While a very attractive asset, Endicia is not focused in the core of our portfolio, and under new ownership is in an exciting position to continue innovating and offering the best possible solutions and service for its customers and partners."

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2014 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Contigo(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R), Baby Jogger(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Factors that may affect actual results include, but are not limited to, whether and when the required regulatory approvals will be obtained, whether and when the closing conditions will be satisfied and whether and when the transaction will close. Please refer to the cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Annual Report on Form 10-K as well as the risk factors set forth in Item 1A thereto, for other factors that could affect our business.

View photo

.

Contact:
Nancy O'Donnell
Vice President, Investor Relations
(770) 418-7723
Nicole Quinlan
Senior Manager, Global Communications
(770) 418-7251

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From: Dr_of_Microcaps5/1/2015 7:24:54 AM
   of 128
 
6:50 am Newell Rubbermaid beats by $0.02, reports revs in-line; reaffirms FY15 EPS guidance, revs guidance ( NWL) : Reports Q1 (Mar) earnings of $0.36 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.34; revenues rose 4.1% year/year to $1.26 bln vs the $1.27 bln consensus.

Co reaffirms guidance for FY15, sees EPS of $2.10-2.18 vs. $2.15 Capital IQ Consensus Estimate; sees FY15 revs of +3.5-4.5% to ~$5.93-5.98 bln vs. $5.93 bln Capital IQ Consensus Estimate. Normalized gross margin was 38.8 percent, a 50 basis point improvement versus prior year, as benefits from productivity, commodity deflation and pricing more than offset the negative impacts of foreign currency and mix from acquisitions.

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From: Dr_of_Microcaps5/1/2015 8:39:42 AM
   of 128
 
Newell Rubbermaid Announces Strong First Quarter Results

Newell Rubbermaid 39 minutes ago GlobeNewswire

4.7% Core Sales Growth and Normalized EPS of $0.36
  • 4.1% Net Sales Growth and Reported EPS of $0.20
  • Affirms 2015 Full Year Guidance
  • Expands Project Renewal to Capture Incremental $150 Million Savings by 2017First Quarter Executive Summary

    4.7 percent core sales growth, excluding foreign currency and the net impact of acquisitions and planned divestitures; 4.1 percent net sales growth including a 490 basis point net contribution from acquisitions and planned divestitures
  • 38.8 percent normalized gross margin, a 50 basis point improvement compared to the prior year; 38.6 percent reported gross margin, a 100 basis point improvement compared to the prior year
  • 12.1 percent normalized operating margin, a 90 basis point improvement compared to the prior year; 7.8 percent reported operating margin, an 80 basis point decline compared to prior year attributable to increased restructuring costs
  • $0.36 normalized EPS compared to $0.34 in the prior year, a 5.9 percent increase despite an $0.08 negative impact from foreign exchange and a comparison with the prior year which included $0.04 in discrete tax rate benefits; $0.20 reported EPS compared to $0.19 in the prior year, a 5.3 percent increase
  • Repurchased 1.9 million shares at a cost of $73.6 million
  • Expanded Project Renewal by an incremental $150 million to capture an incremental $150 million in annualized overhead savings by the end of 2017; cumulative annualized savings over total Project Renewal now anticipated at $620 to $675 million
  • Announced intention to divest Rubbermaid medical cart business (solutions for optimization of nurse work flow in hospitals)
  • ATLANTA, May 1, 2015 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) announced its first quarter 2015 financial results today.

    "We've had a strong start to the year with first quarter core sales growth of 4.7 percent and normalized earnings per share growth of 5.9 percent," said Michael Polk, President and Chief Executive Officer. "Our Win Bigger businesses of Writing, Commercial Products and Tools grew over seven percent as a result of strong innovation, increased advertising investment and great sales execution. All five global business segments grew core sales, including North American core sales growth of five percent and net sales growth of over eleven percent, our best result in many years.

    "The Growth Game Plan is accelerating," continued Polk. "We are creating advantaged brand development and innovation capabilities backed with category leading marketing investment that is transforming Newell Rubbermaid into a growth leader in our industry. These investments have been enabled by our drive to make Newell leaner and more efficient and when coupled with actions to strengthen our portfolio are yielding both growth acceleration and margin expansion. There is more opportunity ahead. Today we announced a new commitment to deliver incremental annualized overhead savings of $150 million by the end of 2017. A significant portion of these incremental savings will be invested back into the business for further growth acceleration with the balance flowing through to earnings. That is the Growth Game Plan into action."

    First Quarter 2015 Operating Results

    Net sales in the first quarter were $1.26 billion compared with $1.21 billion in the prior year. Core sales grew 4.7 percent, excluding a 490 basis point net contribution from acquisitions and planned divestitures and a 550 basis point negative impact from foreign currency.

    Reported gross margin was 38.6 percent, a 100 basis point improvement versus prior year.

    Normalized gross margin was 38.8 percent, a 50 basis point improvement versus prior year, as benefits from productivity, commodity deflation and pricing more than offset the negative impacts of foreign currency and mix from acquisitions.

    First quarter reported operating margin was 7.8 percent and operating income was $98.2 million, compared with 8.6 percent and $104.7 million, respectively, in the prior year.

    Normalized operating margin of 12.1 percent was a 90 basis point improvement compared with the prior year, despite a 50 basis point increase in advertising and promotion. Normalized operating income was $152.6 million compared with $135.4 million in the prior year.

    The reported tax rate for the quarter was 27.9 percent compared with a 3.0 percent benefit in the prior year. The normalized tax rate was 27.2 percent compared with 18.3 percent in the prior year.

    Normalized net income was $97.0 million, compared with $97.8 million in the prior year. Normalized diluted earnings per share were $0.36, an increase of 5.9 percent versus $0.34 in the prior year. The improvement in normalized diluted earnings per share was attributable to increased core sales, gross margin expansion, contribution from acquisitions and the positive impact of fewer outstanding shares, which more than offset a significant increase in advertising and promotion support, negative foreign currency impacts, a higher tax rate and increased interest expense related to borrowing in support of last year's acquisitions.

    Reported diluted earnings per share were $0.20, compared with $0.19 per diluted share in the prior year. Reported net income was $54.1 million, compared with $52.9 million in the prior year. In addition to the factors cited in the explanation of normalized diluted earnings per share, reported diluted earnings per share were negatively impacted by higher incremental restructuring and other project costs of $22.5 million in 2015, and favorably impacted by the absence of a 2014 $38.7 million charge associated with the devaluation of the Venezuelan bolivar.

    Operating cash flow was a use of $154.3 million compared with a use of $92.1 million in the prior year period, as the company made a voluntary $70.0 million contribution to its U.S. pension plan during the first quarter of 2015.

    A reconciliation of the "as reported" results to "normalized" results is included in the appendix.

    First Quarter 2015 Operating Segment Results

    Writing net sales for the first quarter were $341.8 million, a 1.8 percent decline compared to prior year, driven by a negative foreign currency impact of 10.8 percent. Writing core sales increased 9.0 percent, reflecting very strong growth in North America and Latin America attributable to increased advertising and promotion support, excellent innovation and pricing. Normalized operating income was $83.0 million compared with $76.1 million in the prior year. Normalized operating margin was 24.3 percent compared with 21.9 percent in the prior year as a result of pricing, strong productivity and disciplined cost management which more than offset significant negative foreign currency impacts and increased advertising and promotion spending.

    Home Solutions net sales were $364.5 million, a 15.2 percent increase compared to the prior year. Core sales increased 0.9 percent, attributable to strong growth in Rubbermaid Food Storage and Decor, partially offset by continued contraction of the lower margin Rubbermaid Consumer Storage business and the absence of prior year new customer pipeline fill on Calphalon. Normalized operating income was $38.6 million versus $26.8 million in the prior year. Normalized operating margin expanded by 210 basis points to 10.6 percent of sales as a result of the positive mix effect of Rubbermaid Food Storage and input cost deflation on resin, partially offset by the impact of negative foreign currency.

    Tools net sales were $180.4 million, a 3.9 percent decline compared to the prior year driven by a negative foreign currency impact of 7.1 percent. Core sales grew 3.2 percent reflecting robust growth in North America, EMEA and Latin America attributable to strong innovation, distribution gains on the core portfolio and pricing. Normalized operating income was $22.2 million versus $21.4 million in the prior year. Normalized operating margin was 12.3 percent of sales compared with 11.4 percent of sales in the prior year. The improvement in operating margin was primarily driven by pricing and disciplined overhead management, partially offset by the impact of negative foreign currency.

    Commercial Products net sales were $185.2 million, a 1.4 percent increase compared to the prior year. Core sales, which exclude the Rubbermaid medical cart business, increased 9.0 percent attributable to strong innovation, increased marketing support and pricing in North America and Asia. Normalized operating income was $17.6 million compared to $13.8 million in the prior year. Normalized operating margin was 9.5 percent of sales, compared with 7.6 percent of sales in the prior year. The increase in operating margin reflects the benefits of productivity, pricing and input cost deflation on resin, partially offset by an increase in marketing spending and the impact of negative foreign currency.

    Baby & Parenting net sales were $192.1 million, a 7.1 percent increase compared to the prior year. Core sales grew 0.8 percent driven by high single digit growth in North America compared with the prior year period, which was impacted by the Graco recall, and the stabilization of the Japanese business, partially offset by softness in Europe. Normalized operating income was $12.3 million compared to $16.4 million in the prior year. Normalized operating margin was 6.4 percent of sales compared with 9.1 percent of sales in the prior year. The decrease in normalized operating margin was due to increased advertising and promotion spending in support of innovation and the impact of negative foreign currency.

    Strategic Changes

    The company announced its decision to pursue the sale of its Rubbermaid medical cart business. The planned divestiture of this business will further the company's progress toward creating a faster growing, higher margin and more focused portfolio, enabling accelerated performance.

    2015 Full Year Outlook

    Newell Rubbermaid reiterated its 2015 full year core sales growth and normalized EPS guidance metrics as follows:

    Core sales growth 3.5% to 4.5%


    Currency impact (4.5%) to (5.5%)


    Impact of acquisitions, net of planned divestitures 4.0% to 5.0%


    Net sales growth 3.0% to 4.0%


    Normalized EPS $2.10 to $2.18
    The company now expects foreign exchange to have a negative impact of about $0.35 to $0.37 per diluted share on normalized EPS in 2015, $0.04 worse than the previous outlook provided, driven by the stronger U.S. dollar to most currencies.

    The 2015 normalized EPS guidance range excludes between $100 and $140 million of Project Renewal restructuring and other project costs, discontinued operations and costs associated with the Graco recall. (A reconciliation of "expected reported" results to "normalized" results is included in the appendix.)

    Cumulative costs of Project Renewal are expected to be $690 to $725 million pretax, with cash costs of $645 to $675 million. Project Renewal is expected to generate annualized cost savings of approximately $620 to $675 million by the end of 2017. The majority of these savings will be reinvested in new capabilities and incremental brand building investment for accelerated growth in the company's home markets and the geographic deployment of its Win Bigger portfolio into the faster growing emerging markets. The company is currently on track to realize annualized cost savings from the first two phases of Project Renewal of approximately $270 to $325 million by the middle of 2015.

    Conference Call

    The company's first quarter 2015 earnings conference call will be held today, May 1, 2015, at 8:30 a.m. ET. A link to the webcast is provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. A webcast replay and a supporting slide presentation will be made available in the Investor Relations section on the company's Web site under Quarterly Earnings.

    Non-GAAP Financial Measures

    This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission and includes a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

    The company uses certain non-GAAP financial measures that are included in this press release and the additional financial information both in explaining its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The company's management believes that these non-GAAP financial measures and the information they provide are useful to investors since these measures (a) permit investors to view the company's performance using the same tools that management uses to evaluate the company's past performance, reportable business segments and prospects for future performance and (b) determine certain elements of management's incentive compensation.

    The company's management believes that core sales provides a more complete understanding of underlying sales trends by providing sales on a consistent basis as it excludes the impacts of acquisitions, planned or completed divestitures and changes in foreign currency from year-over-year comparisons. As reflected in the Currency Analysis, the effect of foreign currency on reported sales is determined by applying a fixed exchange rate, calculated as the 12-month average in the prior year, to the current and prior year local currency sales amounts, with the difference in these two amounts being the impact on core sales related to foreign currency, and the difference between the change in as reported sales and the change in core sales related to foreign currency reported as the currency impact. The company's management believes that "normalized" gross margin, "normalized" SG&A expense, "normalized" operating income, "normalized" earnings per share and "normalized" tax rates, which exclude restructuring and other expenses and one-time and other events such as costs related to product recalls, the extinguishment of debt, certain tax benefits and charges, impairment charges, pension settlement charges, discontinued operations, costs related to the acquisition and integration of acquired businesses, advisory costs for process transformation and optimization initiatives, dedicated personnel costs related to transformation initiatives under Project Renewal, asset devaluations resulting from the adoption and continued use of the SICAD I Venezuelan Bolivar exchange rate and certain other items, are useful because they provide investors with a meaningful perspective on the current underlying performance of the company's core ongoing operations. The company also uses core sales, normalized gross margin and normalized earnings per share as the three performance criteria in its management cash bonus plan.

    The company determines the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. In certain situations in which an item excluded from normalized results impacts income tax expense, the company uses a "with" and "without" approach to determine normalized income tax expense.

    While the company believes that these non-GAAP financial measures are useful in evaluating the company's performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

    About Newell Rubbermaid

    Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2014 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Contigo(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R), Baby Jogger(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.

    This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

    Caution Concerning Forward-Looking Statements

    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 sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, capital and other expenditures, cash flow, dividends, restructuring and other project costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, changes in exchange rates, product recalls, expected benefits and financial results from recently completed acquisitions and planned divestitures and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "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, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power and consolidation of our retail customers; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands, including the ability to realize anticipated benefits of increased advertising and promotion spend; product liability, product recalls or regulatory actions; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; a failure of one of our key information technology systems or related controls; the potential inability to attract, retain and motivate key employees; future events that could adversely affect the value of our assets and require impairment charges; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations, including exchange controls and pricing restrictions; our ability to complete planned acquisitions and divestitures; our ability to realize the expected benefits and financial results from our recently acquired businesses and planned divestitures; and those factors listed in our most recently filed Annual Report on Form 10-K 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.

    Newell Rubbermaid Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    (in millions, except per share data)



    Three Months Ended March 31,



    YOY

    2015 2014 % Change




    Net sales $ 1,264.0 $ 1,214.3 4.1%
    Cost of products sold 776.5 757.3




    GROSS MARGIN 487.5 457.0 6.7%
    % of sales 38.6% 37.6%




    Selling, general & administrative expenses 362.0 340.3 6.4%
    % of sales 28.6% 28.0%




    Restructuring costs 27.3 12.0




    OPERATING INCOME 98.2 104.7 (6.2)%
    % of sales 7.8% 8.6%




    Nonoperating expenses:


    Interest expense, net 19.2 14.4
    Other expense, net 0.1 40.0

    19.3 54.4 (64.5)%




    INCOME BEFORE INCOME TAXES 78.9 50.3 56.9%
    % of sales 6.2% 4.1%




    Income taxes 22.0 (1.5) NMF
    Effective rate 27.9% NMF




    NET INCOME FROM CONTINUING OPERATIONS 56.9 51.8 9.8%
    % of sales 4.5% 4.3%




    (Loss) income from discontinued operations, net of tax (2.8) 1.1




    NET INCOME $ 54.1 $ 52.9 2.3%

    4.3% 4.4%




    EARNINGS PER SHARE:


    Basic


    Income from continuing operations $ 0.21 $ 0.18
    (Loss) income from discontinued operations $ (0.01) $ --
    Net income $ 0.20 $ 0.19




    Diluted


    Income from continuing operations $ 0.21 $ 0.18
    (Loss) income from discontinued operations $ (0.01) $ --
    Net income $ 0.20 $ 0.19




    AVERAGE SHARES OUTSTANDING:


    Basic 270.5 280.9
    Diluted 272.7 283.8




    NMF - Not meaningful






    Newell Rubbermaid Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (in millions)


    March 31, March 31,
    Assets: 2015 2014



    Cash and cash equivalents $ 215.4 $ 136.8
    Accounts receivable, net 1,053.2 973.1
    Inventories, net 852.3 801.3
    Deferred income taxes 134.4 121.3
    Prepaid expenses and other 179.2 198.8



    Total Current Assets 2,434.5 2,231.3



    Property, plant and equipment, net 563.3 541.3
    Goodwill 2,474.6 2,362.0
    Other intangible assets, net 877.2 606.5
    Other assets 259.2 252.8



    Total Assets $ 6,608.8 $ 5,993.9



    Liabilities and Stockholders' Equity:




    Accounts payable $ 615.6 $ 542.8
    Accrued compensation 99.8 99.6
    Other accrued liabilities 599.9 590.9
    Short-term debt 733.9 318.7
    Current portion of long-term debt 6.5 0.8



    Total Current Liabilities 2,055.7 1,552.8



    Long-term debt 2,094.1 1,666.7
    Deferred income taxes 223.8 154.0
    Other noncurrent liabilities 536.2 546.9



    Stockholders' Equity - Parent 1,695.5 2,070.0
    Stockholders' Equity - Noncontrolling Interests 3.5 3.5



    Total Stockholders' Equity 1,699.0 2,073.5



    Total Liabilities and Stockholders' Equity $ 6,608.8 $ 5,993.9

    Newell Rubbermaid Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
    (in millions)


    Three Months Ended March 31,

    2015 2014
    Operating Activities:

    Net income $ 54.1 $ 52.9
    Adjustments to reconcile net income to net cash used in operating activities:

    Depreciation and amortization 42.2 38.1
    Net (gain) loss from sale of discontinued operations, including impairments -- (2.2)
    Non-cash restructuring costs -- 1.0
    Deferred income taxes 17.9 14.6
    Stock-based compensation expense 6.8 7.0
    Other, net 5.5 45.0
    Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:

    Accounts receivable 170.0 130.5
    Inventories (164.8) (115.8)
    Accounts payable (38.7) (16.1)
    Accrued liabilities and other (247.3) (247.1)
    Net cash used in operating activities $ (154.3) $ (92.1)



    Investing Activities:

    Proceeds from sale of discontinued operations and noncurrent assets $ 4.0 $ --
    Acquisitions and acquisition-related activity (2.0) --
    Capital expenditures (50.9) (31.9)
    Other (0.2) (0.3)
    Net cash used in investing activities $ (49.1) $ (32.2)



    Financing Activities:

    Net short-term borrowings $ 343.4 $ 144.9
    Repurchase and retirement of shares of common stock (73.6) (44.4)
    Cash dividends (53.2) (42.9)
    Excess tax benefits related to stock-based compensation 15.2 5.6
    Other stock-based compensation activity, net (13.6) 10.7
    Net cash provided by financing activities $ 218.2 $ 73.9



    Currency rate effect on cash and cash equivalents $ 1.2 $ (39.1)



    Increase (decrease) in cash and cash equivalents $ 16.0 $ (89.5)
    Cash and cash equivalents at beginning of period 199.4 226.3
    Cash and cash equivalents at end of period $ 215.4 $ 136.8

    Newell Rubbermaid Inc.
    Financial Worksheet - Segment Reporting
    (In Millions)


    2015 2014





    Reconciliation (1,2,3,4)

    Reconciliation (1,2)
    Year-over-year changes


    Reported Excluded Normalized Operating
    Reported Excluded Normalized Operating Net Sales Normalized OI

    Net Sales OI Items OI Margin Net Sales OI Items OI Margin $ % $ %
    Q1:













    Writing $ 341.8 $ 82.4 $ 0.6 $ 83.0 24.3% $ 348.2 $ 76.1 $ -- $ 76.1 21.9% $ (6.4) (1.8)% $ 6.9 9.1%
    Home Solutions 364.5 38.5 0.1 38.6 10.6% 316.4 26.8 -- 26.8 8.5% 48.1 15.2% 11.8 44.0%
    Tools 180.4 22.2 -- 22.2 12.3% 187.8 21.4 -- 21.4 11.4% (7.4) (3.9)% 0.8 3.7%
    Commercial Products 185.2 17.0 0.6 17.6 9.5% 182.6 13.8 -- 13.8 7.6% 2.6 1.4% 3.8 27.5%
    Baby & Parenting 192.1 0.5 11.8 12.3 6.4% 179.3 5.4 11.0 16.4 9.1% 12.8 7.1% (4.1) (25.0)%
    Restructuring Costs -- (27.3) 27.3 --
    -- (12.0) 12.0 --
    --
    --
    Corporate -- (35.1) 14.0 (21.1)
    -- (26.8) 7.7 (19.1)
    --
    (2.0) (10.5)%
    Total $ 1,264.0 $ 98.2 $ 54.4 $ 152.6 12.1% $ 1,214.3 $ 104.7 $ 30.7 $ 135.4 11.2% $ 49.7 4.1% $ 17.2 12.7%















    (1) Excluded items include project-related costs and restructuring costs associated with Project Renewal. Project-related costs of $14.9 million and restructuring costs of $27.3 million incurred during 2015 relate to Project Renewal. For 2014, project-related costs of $7.7 million and restructuring costs of $12.0 million relate to Project Renewal.

    (2) Baby & Parenting normalized operating income for 2015 and 2014 excludes charges of $10.2 and $11.0 million, respectively, relating to the Graco product recall.

    (3) Writing normalized operating income for 2015 excludes $0.3 million of cost of products sold resulting from increased costs of inventory due to changes in the exchange rate for the Venezuelan Bolivar.

    (4) Home Solutions normalized operating income for 2015 excludes $0.1 million of acquisition and integration costs associated with the acquisitions of Ignite Holdings, LLC and bubba brands, and Baby & Parenting normalized operating income for 2015 excludes $1.6 million of costs associated with the acquisition of Baby Jogger.

    Newell Rubbermaid Inc.
    RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
    CERTAIN LINE ITEMS
    (in millions, except per share data)


    Three Months Ended March 31, 2015

    GAAP Measure
    Project Renewal Costs (2)


    Non-GAAP Measure



    Reported


    Product
    recall costs (1)


    Advisory
    Costs


    Personnel
    Costs


    Other
    Costs


    Restructuring
    Costs

    Inventory charge from
    the devaluation of the
    Venezuelan Bolivar (3)


    Acquisition
    and integration
    cost (4)


    Discontinued
    operations (5)


    Normalized*


    Percentage
    of Sales












    Cost of products sold $ 776.5 $ -- $ -- $ (0.2) $ (1.0) $ -- $ (0.3) $ (1.5) $ -- $ 773.5 61.2%












    Gross margin $ 487.5 $ -- $ -- $ 0.2 $ 1.0 $ -- $ 0.3 $ 1.5 $ -- $ 490.5 38.8%












    Selling, general & administrative expenses $ 362.0 $ (10.2) $ (10.6) $ (2.3) $ (0.8) $ -- $ -- $ (0.2) $ -- $ 337.9 26.7%












    Operating income $ 98.2 $ 10.2 $ 10.6 $ 2.5 $ 1.8 $ 27.3 $ 0.3 $ 1.7 $ -- $ 152.6 12.1%












    Income before income taxes $ 78.9 $ 10.2 $ 10.6 $ 2.5 $ 1.8 $ 27.3 $ 0.3 $ 1.7 $ -- $ 133.3












    Income taxes (6) $ 22.0 $ 3.3 $ 3.4 $ 0.8 $ 0.6 $ 5.5 $ 0.1 $ 0.6 $ -- $ 36.3












    Net income from continuing operations $ 56.9 $ 6.9 $ 7.2 $ 1.7 $ 1.2 $ 21.8 $ 0.2 $ 1.1 $ -- $ 97.0












    Net income $ 54.1 $ 6.9 $ 7.2 $ 1.7 $ 1.2 $ 21.8 $ 0.2 $ 1.1 $ 2.8 $ 97.0












    Diluted earnings per share** $ 0.20 $ 0.03 $ 0.03 $ 0.01 $ 0.00 $ 0.08 $ 0.00 $ 0.00 $ 0.01 $ 0.36

























    Three Months Ended March 31, 2014




    GAAP Measure



    Non-GAAP Measure






    Reported


    Product
    recall costs (1)


    Restructuring and
    restructuring-related
    costs (2)

    Charge resulting from
    the devaluation of the
    Venezuelan Bolivar (7)


    Discontinued
    operations (5)


    Normalized*


    Percentage
    of Sales
















    Cost of products sold $ 757.3 $ (8.6) $ -- $ -- $ -- $ 748.7 61.7%















    Gross margin $ 457.0 $ 8.6 $ -- $ -- $ -- $ 465.6 38.3%