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   Non-TechNWL: Newell Rubbermaid, Inc.


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From: Dr_of_Microcaps2/2/2013 1:34:24 AM
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Newell Rubbermaid Reports Solid Fourth Quarter 2012 Results and Provides 2013 Guidance Normalized EPS of $0.43, up 7.5 Percent vs. Prior Year Reported EPS of $0.35, up 29.6 Percent vs. Prior Year Press Release: Newell Rubbermaid Inc. – 18 hours ago




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ATLANTA--(BUSINESS WIRE)--

Newell Rubbermaid ( NWL) today announced solid fourth quarter 2012 results.

“We are pleased with our quarterly and full year 2012 performance,” said President and Chief Executive Officer Michael Polk. “Our solid fourth quarter financial results represent the sixth consecutive quarter of consistent delivery in line with or better than expectations. Full year normalized EPS and operating cash flow both came in above the high end of our guidance range. We increased core sales by 2.2%, a sequential improvement versus last year, and a solid outcome in the face of tough economic conditions in Europe and challenges in our Décor business. Our Win Bigger brands have healthy share momentum and we are generating strong core sales growth in emerging markets, particularly in Latin America. We also returned significant levels of cash to shareholders through our dividend, which nearly doubled in 2012 to the current annualized rate of $0.60, and our ongoing share repurchase program.”

Polk added, “Looking ahead, we continue to be sharply focused on driving structural costs out and accelerating growth through the execution of our Growth Game Plan. The strategic changes we are making to invest behind our Win Bigger businesses will drive accelerated performance and enable us to build a bigger, faster-growing, more global and more profitable Newell Rubbermaid.”

Executive Summary

    Fourth quarter 2012 net sales were $1.52 billion, an increase of 1.6 percent versus prior year results. Core sales, which exclude the impact of changes in foreign currency translation, grew 2.2 percent.
Normalized diluted earnings per share were $0.43 compared with $0.40 in the prior year period; reported diluted earnings per share were $0.35 compared with $0.27 in the year-ago period.
    Operating cash flow in the quarter was $261.3 million. Full year 2012 operating cash flow was $618.5 million, an improvement of $57.2 million versus prior year. The company returned $67.8 million to shareholders in the fourth quarter through dividends of $43.5 million and the repurchase of 1.1 million shares at a cost of $24.3 million. The company strengthened its balance sheet and reduced ongoing interest expense through the early repayment of $500 million in 5.5% notes due April 2013. The debt was refinanced through the issuance of $350 million in 2.05% notes due 2017, cash on hand and short-term borrowings. The company provided 2013 guidance for core sales growth in a range from 2 to 4 percent, normalized operating margin improvement of up to 20 basis points, normalized earnings per share of $1.78 to $1.84 and operating cash flow of $575 to $625 million, which includes an incremental pension plan contribution of $50 million.
Fourth Quarter 2012 Operating Results

Net sales in the fourth quarter were $1.52 billion, an increase of 1.6 percent compared with the prior year. Core sales, which exclude 60 basis points of adverse foreign currency translation, grew 2.2 percent. Sales growth was largely attributable to the Tools, Baby & Parenting and Writing segments and to robust growth in Latin America.

As expected, gross margin of 36.5 percent represented a decline of 70 basis points versus prior year. Normalized gross margin decreased 50 basis points versus prior year to 36.7 percent as the company made incremental investments in customer programs associated with fourth quarter events and stronger 2013 new item sell-in.

Operating margin for the quarter was 10.1 percent, an increase of 170 basis points compared to the prior year. Normalized operating margin was 11.7 percent, a decrease of 10 basis points to the prior year. Lower structural SG&A costs reflecting the benefits of Project Renewal initiatives were offset by higher incentive compensation, customer programs and strategic SG&A spending on sales force expansion in Tools and Commercial Products in Latin America and Rubbermaid Healthcare in North America, and on increased advertising and promotion expenses in Writing.

Fourth quarter reported operating income was $153.8 million versus $125.5 million in the prior year period, and normalized operating income was $177.8 million compared with $176.8 million in the prior year period. Fourth quarter normalized operating income excludes $24.0 million of restructuring and restructuring-related costs incurred primarily in connection with Project Renewal and the European Transformation Plan. In 2011, normalized operating income excluded $49.4 million of restructuring and restructuring-related costs incurred in connection with the European Transformation Plan and Project Renewal and $1.9 million in incremental costs associated with the company’s CEO transition.

The reported tax rate for the quarter was 23.1 percent compared with 19.6 percent in the prior year. The normalized tax rate was 20.7 percent compared with 23.0 percent in the prior year. The year-over-year change in the normalized tax rate was primarily driven by the geographic mix of earnings and utilization of tax attributes.

Net income, as reported, was $101.9 million, or $0.35 per diluted share, for the fourth quarter. This compares with $80.4 million, or $0.27 per diluted share, in the prior year.

Normalized earnings of $0.43 per diluted share compares with prior year normalized results of $0.40 per diluted share. This 7.5 percent improvement was largely driven by lower interest expense and a lower normalized tax rate.

For the fourth quarter 2012, normalized diluted earnings per share exclude $0.06 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; $0.01 per diluted share related to the extinguishment of debt; and the exclusion of $0.01 per diluted share resulting from tax contingencies. For the fourth quarter 2011, normalized diluted earnings per share excluded $0.12 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan and Project Renewal. (A reconciliation of the “as reported” results to “normalized” results is included below.)

The company generated operating cash flow of $261.3 million during the fourth quarter of 2012 compared with $281.5 million in the comparable period last year. Capital expenditures were $47.0 million compared with $71.7 million in the prior year.


A reconciliation of the fourth quarter 2012 and 2011 results is as follows:
Q4 2012 Q4 2011*
Diluted earnings per share (as reported) $ 0.35 $ 0.27
Restructuring and restructuring-related costs $ 0.06 $ 0.12
Income tax – incremental contingencies $ 0.01 $ 0.00
Loss related to the extinguishment of debt $ 0.01 $ 0.00
Normalized EPS $ 0.43 $ 0.40
* totals may not add due to rounding
Fourth Quarter 2012 Operating Segment Results

The Home Solutions segment net sales for the fourth quarter were $453.1 million, a 0.8 percent increase compared with the prior year quarter. Core sales in the segment increased 0.5 percent. Growth from the Rubbermaid®, Calphalon®, and Goody® brands was partially offset by a decline in Décor largely related to a change in merchandising strategy at a significant retail customer. Operating income in the Home Solutions segment was $64.8 million, or 14.3 percent of sales, as compared with $57.2 million, or 12.7 percent of sales, in the prior year. Normalized operating income in the Home Solutions segment was $67.7 million, or 14.9 percent of sales, compared with $57.2 million, or 12.7 percent of sales, in the prior year. The improvements were driven by Project Renewal-related structural SG&A cost reductions and improved productivity, which more than offset input cost inflation.

The Writing segment net sales for the fourth quarter were $344.5 million, a 2.0 percent increase compared with the prior year quarter. Core sales in the segment increased 2.4 percent. The improvement was largely driven by strong growth in Latin America attributable to the launch of Paper Mate® InkJoy® in that region and share gains in North America on Paper Mate, Sharpie®, and Expo®. Operating income in Writing was $55.6 million, or 16.1 percent of sales, compared with $55.5 million, or 16.4 percent of sales, in the prior year. The 30 basis point decline was attributable to favorable mix, offset by input cost inflation and advertising and promotion support behind the launch of Sharpie Metallics, Sharpie’s music partnership with One Direction, and the 125th anniversary of Parker.

The Tools segment net sales for the fourth quarter were $209.5 million, a 3.6 percent increase compared with the prior year quarter. Core sales in the segment increased 6.0 percent. The improved performance was driven by strong growth in emerging markets, particularly Latin America. Operating income in the Tools segment was $23.8 million, or 11.4 percent of sales, compared with $30.3 million, or 15.0 percent of sales, in the prior year. Improved productivity was more than offset by unfavorable mix, inflation and ongoing investment in sales force expansion in Latin America and an increase in customer programs.

The Commercial Products segment net sales for the fourth quarter were $188.6 million, a 0.9 percent increase compared with the prior year quarter. Core sales in the segment increased 1.3 percent. The improvement was primarily driven by strong performance in North America, particularly in Rubbermaid Healthcare. Operating income in the Commercial Products segment was $22.0 million, or 11.7 percent of sales, compared with $27.8 million, or 14.9 percent of sales, in the prior year. Favorable productivity was more than offset by ongoing investment in sales capabilities in emerging markets and increased merchandising investment in North America behind the Rubbermaid Commercial Products refuse and recycling businesses.

The Baby & Parenting segment net sales for the fourth quarter were $186.2 million, a 4.2 percent increase compared with the prior year quarter. Core sales in the segment increased 5.9 percent. The improvement was driven by Graco®’s strong share gains in North America and continued robust growth of Aprica® in Japan. Operating income in the Baby & Parenting segment was $12.8 million, or 6.9 percent of sales, compared with $13.5 million, or 7.6 percent of sales, in the prior year. The operating margin decline was driven by increased investments in advertising development and increased merchandising activity associated with sell in of 2013 innovation.

The Specialty segment net sales for the fourth quarter were $136.9 million, a 2.2 percent decrease compared with the prior year quarter. Core sales in the segment decreased 1.3 percent. Growth in the Dymo Office Labeling and Endicia businesses were offset by softness in Mimio® and Shur-line®. Operating income was $20.2 million, or 14.8 percent of sales, compared with $15.3 million, or 10.9 percent of sales, in the prior year. The operating margin improvement was attributable to Project Renewal-related cost reductions, which more than offset input cost inflation.

Twelve Month Results

Net sales for the twelve months ended December 31, 2012, increased 0.6 percent to $5.90 billion, compared with $5.86 billion in the prior year. Core sales increased 2.2 percent after excluding the 1.6 percent impact of unfavorable foreign currency translation. Core sales growth increased 40 basis points sequentially versus the 2011 core growth rate.

Both reported and normalized gross margin increased 20 basis points compared with prior year to 37.8 percent, as productivity gains and pricing more than offset the effect of input cost inflation.

Reported operating margin of 11.0 percent improved 660 basis points largely due to the impact of asset impairment charges in last year’s results. Normalized operating margin increased 10 basis points versus prior year to 12.6 percent.

Normalized earnings were $1.70 per diluted share compared with $1.59 per diluted share in the prior year. Net income, as reported, was $401.3 million, or $1.37 per diluted share. This compares with $125.2 million, or $0.42 per diluted share, in the prior year.

For the twelve months ended December 31, 2012, normalized diluted earnings per share exclude $0.24 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; income tax charges of $0.08 per diluted share attributable to certain tax contingencies, expiration of statutes of limitation and resolution of tax examinations; $0.02 per diluted share related to the extinguishment of debt; and a net gain of $0.01 per diluted share from discontinued operations primarily related to the receipt of the escrow from the disposal of the hand torch and solder business. For the twelve months ended December 31, 2011, normalized earnings per diluted share exclude $1.03 per diluted share for impairment charges primarily related to goodwill write-downs; $0.24 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan and Project Renewal; $0.02 per diluted share related to the incremental costs associated with the company’s CEO transition; $0.01 per diluted share related to the extinguishment of debt; and benefits of $0.17 per diluted share resulting from the reversal of certain tax contingencies due to the expiration of various statutes of limitation. In addition, last year the company recorded a net loss from discontinued operations of $9.4 million, or $0.03 per share, reflecting the income from discontinued operations and loss on disposal of the hand torch and solder business, which was excluded from normalized earnings. (A reconciliation of the “as reported” results to “normalized” results is included below.)

The company generated operating cash flow of $618.5 million during 2012 compared with $561.3 million in 2011. Capital expenditures were $177.2 million compared with $222.9 million in the prior year, principally related to lower expenditures on SAP implementations.


A reconciliation of the twelve months 2012 and 2011 results is as follows:
2012 2011*
Diluted earnings per share (as reported) $ 1.37 $ 0.42
Impairment charges $ 0.00 $ 1.03
Restructuring and restructuring-related costs $ 0.24 $ 0.24
Discontinued operations
$

(0.01
) $ 0.03

CEO transition costs
$ 0.00
$

0.02
Income tax– discrete contingencies,
expiration of statutes of limitation and
resolution of examinations $ 0.08
$

(0.17

)
Loss related to the extinguishment of debt $ 0.02 $ 0.01
Normalized EPS $ 1.70 $ 1.59

* totals may not add due to rounding
2013 Outlook

The company’s guidance and key assumptions for the full year 2013 are as follows:

    Core sales increase of 2 to 4 percent.
      Net sales are expected to grow 1 to 3 percent Currency rates are expected to decrease sales by about 100 basis points
    Normalized operating margin improvement of up to 20 basis points Normalized EPS growth of 5 to 8 percent, or $1.78 to $1.84
      The company’s 2013 normalized EPS expectation excludes between $90 and $110 million of restructuring and restructuring-related costs associated with Project Renewal. (A reconciliation to normalized results is included below.) The company is on track to realize cumulative annualized cost savings of approximately $270 to $325 million by the second quarter of 2015 related to Project Renewal, with cumulative annualized savings of $90 to $100 million expected by the first half of 2013. The company intends to reinvest the majority of Project Renewal savings in the business to strengthen brand building and selling capabilities and accelerate growth.
    Operating cash flow of between $575 and $625 million
      This operating cash flow guidance includes a U.S. pension plan contribution of approximately $100 million, approximately $50 million higher than the 2012 contribution, and restructuring and restructuring-related cash payments of approximately $70 to $90 million.
    The company plans to fund capital expenditures of $175 to $200 million during the year.
A reconciliation of the 2013 earnings outlook is as follows:

FY 2013
Diluted earnings per share $1.54 to $1.60
Restructuring and restructuring-related costs $0.21 to $0.27
Normalized EPS $1.78 to $1.84
Conference Call

The company’s fourth quarter 2012 earnings conference call is scheduled for today, February 1, 2013, at 8:30 am ET. To listen to the webcast, use the link provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The webcast will be recorded and made available for replay. A supporting slide presentation will be available under Quarterly Earnings in the Investor Relations section on the company’s Web site.

Non-GAAP Financial Measures

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

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 company 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 translation on reported sales. The effect of foreign currency translation on reported sales is determined by applying the current year and prior year monthly exchange rates to the local currency sales amounts in the current year period, with the difference in these two amounts being the currency impact from last year to this year and the residual representing changes attributable to core sales. The company’s management believes that normalized gross margin, normalized SG&A expense and normalized operating income 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 excludes restructuring and restructuring-related charges and one-time events such as losses related to 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 uses both core sales and normalized earnings per share as two of the three performance criteria in its management cash bonus plan.

The company determined 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 2012 sales of approximately $5.9 billion and a strong portfolio of leading brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Rubbermaid Commercial Products® and Aprica®.

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, the European Transformation Plan, 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, 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; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to successfully implement information technology solutions throughout our organization; 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 Quarterly Report on Form 10-Q and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission.


Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Three Months Ended December 31,
YOY
2012 2011 % Change
Net sales $ 1,518.8 $ 1,495.2 1.6 %
Cost of products sold 963.8 938.6
GROSS MARGIN 555.0 556.6 (0.3 )%
% of sales 36.5 % 37.2 %
Selling, general &
administrative expenses 382.6 393.3 (2.7 )%
% of sales 25.2 % 26.3 %
Restructuring costs 18.6 37.8
OPERATING INCOME 153.8 125.5 22.5 %
% of sales 10.1 % 8.4 %
Nonoperating expenses:
Interest expense, net 17.4 21.2
Loss on extinguishment of debt 4.1 -
Other (income) expense, net (0.2 ) 2.7
21.3 23.9 (10.9 )%
INCOME BEFORE INCOME TAXES 132.5 101.6 30.4 %
% of sales 8.7 % 6.8 %
Income taxes 30.6 19.9 53.8 %
Effective rate 23.1 % 19.6 %
NET INCOME FROM CONTINUING OPERATIONS 101.9 81.7 24.7 %
% of sales 6.7 % 5.5 %
Loss from discontinued operations, net of tax - (1.3 )
NET INCOME $ 101.9 $ 80.4 26.7 %
6.7 % 5.4 %
EARNINGS PER SHARE:
Basic
Income from continuing operations $ 0.35 $ 0.28
Loss from discontinued operations - -
Net income $ 0.35 $ 0.28
Diluted
Income from continuing operations $ 0.35 $ 0.28
Loss from discontinued operations - -
Net income $ 0.35 $ 0.27
AVERAGE SHARES OUTSTANDING:
Basic 290.0 292.0
Diluted 293.1 294.4
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Twelve Months Ended December 31,
YOY
2012 2011 % Change
Net sales $ 5,902.7 $ 5,864.6 0.6 %
Cost of products sold 3,673.6 3,659.4
GROSS MARGIN 2,229.1 2,205.2 1.1 %
% of sales 37.8 % 37.6 %
Selling, general &
administrative expenses 1,521.1 1,515.3 0.4 %
% of sales 25.8 % 25.8 %
Impairment charges - 382.6
Restructuring costs 56.1 50.1
OPERATING INCOME 651.9 257.2 NMF
% of sales 11.0 % 4.4 %
Nonoperating expenses:
Interest expense, net 76.1 86.2
Loss on extinguishments of debt 10.9 4.8
Other (income) expense, net (1.0 ) 13.7
86.0 104.7 (17.9 )%
INCOME BEFORE INCOME TAXES 565.9 152.5 NMF
% of sales 9.6 % 2.6 %
Income taxes 166.3 17.9 NMF
Effective rate 29.4 % 11.7 %
NET INCOME FROM CONTINUING OPERATIONS 399.6 134.6 NMF
% of sales 6.8 % 2.3 %
Income (loss) from discontinued operations, net of tax 1.7 (9.4 )
NET INCOME $ 401.3 $ 125.2 NMF
6.8 % 2.1 %
EARNINGS PER SHARE:
Basic
Income from continuing operations $ 1.37 $ 0.46
Income (loss) from discontinued operations 0.01 (0.03 )
Net income $ 1.38 $ 0.43
Diluted
Income from continuing operations $ 1.36 $ 0.45
Income (loss) from discontinued operations 0.01 (0.03 )
Net income $ 1.37 $ 0.42
AVERAGE SHARES OUTSTANDING:
Basic 291.2 293.6
Diluted 293.6 296.2
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 December 31, 2012
GAAP Measure Restructuring Loss on Non-GAAP Measure
and restructuring- extinguishment Non-recurring Percentage
Reported related costs (1) of debt (2) tax items (3) Normalized* of Sales
Cost of products sold $ 963.8 $ (2.6 ) $ - $ - $ 961.2 63.3 %
Gross margin $ 555.0 $ 2.6 $ - $ - $ 557.6 36.7 %
Selling, general & administrative expenses $ 382.6 $ (2.8 ) $ - $ - $ 379.8 25.0 %
Operating income $ 153.8 $ 24.0 $ - $ - $ 177.8 11.7 %
Nonoperating expenses $ 21.3 $ - $ (4.1 ) $ - $ 17.2
Income before income taxes $ 132.5 $ 24.0 $ 4.1 $ - $ 160.6
Income taxes (4) $ 30.6 $ 5.0 $ 1.5 $ (3.9 ) $ 33.2
Net income $ 101.9 $ 19.0 $ 2.6 $ 3.9 $ 127.4
Diluted earnings per share** $ 0.35 $ 0.06 $ 0.01 $ 0.01 $ 0.43
Three Months Ended December 31, 2011
GAAP Measure Restructuring Non-GAAP Measure
and restructuring- Discontinued CEO transition Percentage
Reported related costs (1) operations (5) costs (6) Normalized* of Sales
Selling, general & administrative expenses $ 393.3 $ (11.6 ) $ - $ (1.9 ) $ 379.8 25.4 %
Operating income $ 125.5 $ 49.4 $ - $ 1.9 $ 176.8 11.8 %
Income before income taxes $ 101.6 $ 49.4 $ - $ 1.9 $ 152.9
Income taxes (4) $ 19.9 $ 14.2 $ - $ 1.0 $ 35.1
Net income from continuing operations $ 81.7 $ 35.2 $ - $ 0.9 $ 117.8
Net income $ 80.4 $ 35.2 $ 1.3 $ 0.9 $ 117.8
Diluted earnings per share** $ 0.27 $ 0.12 $ - $ - $ 0.40
* 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) Restructuring and restructuring-related charges during the three months ended December 31, 2012 include $5.4 million of restructuring-related costs and $18.6 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the three months ended December 31, 2011 include $11.6 million of restructuring-related costs and $37.8 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal.
(2) Loss on extinguishment of debt of $4.1 million during the three months ended December 31, 2012 was incurred in connection with the early retirement of the April 2013 Senior Notes.
(3) During the three months ended December 31, 2012, the Company incurred $3.9 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation.
(4) 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.
(5) During the three months ended December 31, 2011, the Company recognized a $1.3 million loss in discontinued operations primarily related to the sale of the hand torch and solder business in July 2011.
(6) The Company incurred incremental costs of $1.9 million during the quarter ended December 31, 2011 associated with its CEO transition.
Newell Rubbermaid Inc.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
CERTAIN LINE ITEMS
(in millions, except per share data)
Twelve Months Ended December 31, 2012
GAAP Measure Restructuring Loss on Non-GAAP Measure
and restructuring- extinguishments Non-recurring Discontinued Percentage
Reported related costs (1) of debt (2) tax items (3) operations (4) Normalized* of Sales
Cost of products sold $ 3,673.6 $ (2.6 ) $ - $ - $ - $ 3,671.0 62.2 %
Gross margin $ 2,229.1 $ 2.6 $ - $ - $ - $ 2,231.7 37.8 %
Selling, general & administrative expenses $ 1,521.1 $ (31.9 ) $ - $ - $ - $ 1,489.2 25.2 %
Operating income $ 651.9 $ 90.6 $ - $ - $ - $ 742.5 12.6 %
Nonoperating expenses $ 86.0 $ - $ (10.9 ) $ - $ - $ 75.1
Income before income taxes $ 565.9 $ 90.6 $ 10.9 $ - $ - $ 667.4
Income taxes (5) $ 166.3 $ 19.9 $ 4.0 $ (23.1 ) $ - $ 167.1
Net income from continuing operations $ 399.6 $ 70.7 $ 6.9 $ 23.1 $ - $ 500.3
Net income $ 401.3 $ 70.7 $ 6.9 $ 23.1 $ (1.7 ) $ 500.3
Diluted earnings per share** $ 1.37 $ 0.24 $ 0.02 $ 0.08 $ (0.01 ) $ 1.70
Twelve Months Ended December 31, 2011
GAAP Measure Restructuring Loss on Non-GAAP Measure
and restructuring- extinguishments Non-recurring Discontinued Impairment CEO transition Percentage
Reported related costs (1) of debt (2) tax items (3) operations (4) charges (6) costs (7) Normalized* of Sales
Selling, general & administrative expenses $ 1,515.3 $ (37.4 ) $ - $ - $ - $ - $ (6.3 ) $ 1,471.6 25.1 %
Operating income $ 257.2 $ 87.5 $ - $ - $ - $ 382.6 $ 6.3 $ 733.6 12.5 %
Nonoperating expenses $ 104.7 $ - $ (4.8 ) $ - $ - $ - $ - $ 99.9
Income before income taxes $ 152.5 $ 87.5 $ 4.8 $ - $ - $ 382.6 $ 6.3 $ 633.7
Income taxes (5) $ 17.9 $ 17.0 $ 1.7 $ 49.0 $ - $ 76.2 $ 1.0 $ 162.8
Net income from continuing operations $ 134.6 $ 70.5 $ 3.1 $ (49.0 ) $ - $ 306.4 $ 5.3 $ 470.9
Net income $ 125.2 $ 70.5 $ 3.1 $ (49.0 ) $ 9.4 $ 306.4 $ 5.3 $ 470.9
Diluted earnings per share** $ 0.42 $ 0.24 $ 0.01 $ (0.17 ) $ 0.03 $ 1.03 $ 0.02 $ 1.59
* 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) Restructuring and restructuring-related charges during the twelve months ended December 31, 2012 include $34.5 million of restructuring-related costs and $56.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the twelve months ended December 31, 2011 include $37.4 million of restructuring-related costs and $50.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal.
(2) Loss on extinguishments of debt of $10.9 million during the twelve months ended December 31, 2012 primarily represents the costs associated with the early retirement of the junior convertible subordinated debentures underlying the quarterly income preferred securities (QUIPS) and the April 2013 Senior Notes. Loss on extinguishments of debt of $4.8 million during the twelve months ended December 31, 2011 represents costs incurred to exchange substantially all of the remaining convertible notes issued during March 2009 for shares and cash.
(3) During the twelve months ended December 31, 2012, the Company incurred $23.1 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation. During the twelve months ended December 31 2011, the Company recognized $49.0 million of previously unrecognized income tax benefits primarily resulting from the expiration of various statutes of limitation.
(4) During the twelve months ended December 31, 2012 and the twelve months ended December 31, 2011, the Company recognized a $1.7 million gain and $9.4 million loss in discontinued operations, respectively, related to the sale of the hand torch and solder business in July 2011.
(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 twelve months ended December 31, 2011, the Company recorded asset impairment charges of $382.6 million primarily related to goodwill impairment for the Baby & Parenting and Hardware businesses.
(7) The Company incurred incremental costs of $6.3 million during the twelve months ended December 31, 2011 associated with its CEO transition.
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
December 31, December 31,
Assets: 2012 2011
Cash and cash equivalents $ 183.8 $ 170.2
Accounts receivable, net 1,112.4 1,002.0
Inventories, net 696.4 699.9
Deferred income taxes 135.8 130.7
Prepaid expenses and other 142.7 145.2
Total Current Assets 2,271.1 2,148.0
Property, plant and equipment, net 560.2 551.4
Goodwill 2,370.2 2,366.0
Other intangible assets, net 654.1 666.1
Deferred income taxes 85.2 120.2
Other assets 281.2 309.2
Total Assets $ 6,222.0 $ 6,160.9
Liabilities and Stockholders' Equity:
Accounts payable $ 527.4 $ 468.5
Accrued compensation 173.5 131.4
Other accrued liabilities 658.0 693.5
Short-term debt 210.7 103.6
Current portion of long-term debt 1.2 263.9
Total Current Liabilities 1,570.8 1,660.9
Long-term debt 1,706.5 1,809.3
Other noncurrent liabilities 944.5 838.1
Stockholders' Equity - Parent 1,996.7 1,849.1
Stockholders' Equity - Noncontrolling Interests 3.5 3.5
Total Stockholders' Equity 2,000.2 1,852.6
Total Liabilities and Stockholders' Equity $ 6,222.0 $ 6,160.9
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
Twelve Months Ended December 31,
2012 2011
Operating Activities:
Net income $ 401.3 $ 125.2
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 163.7 161.6
Impairment charges - 382.6
Loss on extinguishments of debt 10.9 4.8
(Gain) loss on disposal of discontinued operations (5.2 ) 13.9
Non-cash restructuring costs 0.3 7.0
Deferred income taxes 71.2 (4.8 )
Stock-based compensation expense 32.9 43.0
Other 12.0 11.7
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:
Accounts receivable (101.2 ) (17.6 )
Inventories 7.7 (21.5 )
Accounts payable 56.3 3.3
Accrued liabilities and other (31.4 ) (147.9 )
Net cash provided by operating activities $ 618.5 $ 561.3
Investing Activities:
Acquisitions and acquisition-related activity $ (26.5 ) $ (20.0 )
Capital expenditures (177.2 ) (222.9 )
Proceeds from sales of noncurrent assets 43.5 44.3
Other (2.8 ) (7.8 )
Net cash used in investing activities $ (163.0 ) $ (206.4 )
Financing Activities:
Net short-term borrowings $ 106.0 $ (34.4 )
Proceeds from issuance of debt, net of debt issuance costs 841.9 3.3
Payments on and for the settlement of notes payable and debt (1,203.4 ) (151.0 )
Cash consideration paid to exchange convertible notes - (3.1 )
Repurchase and retirement of shares of common stock (91.5 ) (46.1 )
Cash dividends (125.9 ) (84.9 )
Excess tax benefits related to stock-based compensation 12.7 -
Other, net 14.2 (8.4 )
Net cash used in financing activities $ (446.0 ) $ (324.6 )
Currency rate effect on cash and cash equivalents $ 4.1 $ 0.3
Increase in cash and cash equivalents $ 13.6 $ 30.6
Cash and cash equivalents at beginning of year 170.2 139.6
Cash and cash equivalents at end of year $ 183.8 $ 170.2
Newell Rubbermaid Inc.
Financial Worksheet- Segment Reporting
(In Millions)
2012 2011
Reconciliation (1) Reconciliation (1) 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:
Home Solutions $ 349.5 $ 35.5 $ - $ 35.5 10.2 % $ 383.9 $ 49.2 $ - $ 49.2 12.8 % $ (34.4 ) (9.0 )% $ (13.7 ) (27.8 )%
Writing 290.1 40.0 - 40.0 13.8 % 272.5 41.6 - 41.6 15.3 % 17.6 6.5 % (1.6 ) (3.8 )%
Tools 190.6 28.7 - 28.7 15.1 % 168.4 23.6 - 23.6 14.0 % 22.2 13.2 % 5.1 21.6 %
Commercial Products 175.4 18.6 - 18.6 10.6 % 166.5 20.8 - 20.8 12.5 % 8.9 5.3 % (2.2 ) (10.6 )%
Baby & Parenting 182.2 22.4 - 22.4 12.3 % 150.3 7.4 - 7.4 4.9 % 31.9 21.2 % 15.0 202.7 %
Specialty 144.6 23.4 - 23.4 16.2 % 132.6 15.7 - 15.7 11.8 % 12.0 9.0 % 7.7 49.0 %
Restructuring Costs - (12.7 ) 12.7 - - (5.8 ) 5.8 - - -
Corporate - (31.7 ) 10.0 (21.7 ) - (24.5 ) 5.3 (19.2 ) - (2.5 ) (13.0 )%
Total $ 1,332.4 $ 124.2 $ 22.7 $ 146.9 11.0 % $ 1,274.2 $ 128.0 $ 11.1 $ 139.1 10.9 % $ 58.2 4.6 % $ 7.8 5.6 %
2012 2011
Reconciliation (1) Reconciliation (1) 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 $ % $ %
Q2:
Home Solutions $ 414.0 $ 47.6 $ - $ 47.6 11.5 % $ 426.1 $ 51.6 $ - $ 51.6 12.1 % $ (12.1 ) (2.8 )% $ (4.0 ) (7.8 )%
Writing 394.4 98.0 - 98.0 24.8 % 407.7 91.9 - 91.9 22.5 % (13.3 ) (3.3 )% 6.1 6.6 %
Tools 202.4 30.5 - 30.5 15.1 % 200.2 30.6 - 30.6 15.3 % 2.2 1.1 % (0.1 ) (0.3 )%
Commercial Products 190.1 21.1 - 21.1 11.1 % 194.7 30.1 - 30.1 15.5 % (4.6 ) (2.4 )% (9.0 ) (29.9 )%
Baby & Parenting 182.4 19.2 - 19.2 10.5 % 175.2 13.0 - 13.0 7.4 % 7.2 4.1 % 6.2 47.7 %
Specialty 132.9 12.0 - 12.0 9.0 % 141.4 8.9 - 8.9 6.3 % (8.5 ) (6.0 )% 3.1 34.8 %
Restructuring Costs - (11.1 ) 11.1 - - (1.0 ) 1.0 - - -
Corporate - (31.8 ) 10.5 (21.3 ) - (29.2 ) 9.0 (20.2 ) - (1.1 ) (5.4 )%
Total $ 1,516.2 $ 185.5 $ 21.6 $ 207.1 13.7 % $ 1,545.3 $ 195.9 $ 10.0 $ 205.9 13.3 % $ (29.1 ) (1.9 )% $ 1.2 0.6 %
2012 2011
Reconciliation (1) 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 $ % $ %
Q3:
Home Solutions $ 427.4 $ 69.6 $ 2.0 $ 71.6 16.8 % $ 450.6 70.9 $ - $ 70.9 15.7 % $ (23.2 ) (5.1 )% $ 0.7 1.0 %
Writing 387.2 68.3 1.2 69.5 17.9 % 381.5 57.9 - 57.9 15.2 % 5.7 1.5 % 11.6 20.0 %
Tools 203.6 26.8 - 26.8 13.2 % 208.7 34.6 - 34.6 16.6 % (5.1 ) (2.4 )% (7.8 ) (22.5 )%
Commercial Products 205.6 31.2 - 31.2 15.2 % 193.3 29.6 - 29.6 15.3 % 12.3 6.4 % 1.6 5.4 %
Baby & Parenting 185.3 18.3 - 18.3 9.9 % 176.2 17.7 - 17.7 10.0 % 9.1 5.2 % 0.6 3.4 %
Specialty 126.2 12.6 - 12.6 10.0 % 139.6 20.3 - 20.3 14.5 % (13.4 ) (9.6 )% (7.7 ) (37.9 )%
Impairment Charges - - - - - (382.6 ) 382.6 - - -
Restructuring Costs - (13.7 ) 13.7 - - (5.5 ) 5.5 - - -
Corporate - (24.7 ) 5.4 (19.3 ) - (35.1 ) 15.9 (19.2 ) - (0.1 ) (0.5 )%
Total $ 1,535.3 $ 188.4 $ 22.3 $ 210.7 13.7 % $ 1,549.9 $ (192.2 ) $ 404.0 $ 211.8 13.7 % $ (14.6 ) (0.9 )% $ (1.1 ) (0.5 )%
2012 2011
Reconciliation (1) Reconciliation (1) 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 $ % $ %
Q4:
Home Solutions $ 453.1 $ 64.8 $ 2.9 $ 67.7 14.9 % $ 449.6 $ 57.2 $ - $ 57.2 12.7 % $ 3.5 0.8 % $ 10.5 18.4 %
Writing 344.5 55.6 - 55.6 16.1 % 337.6 55.5 - 55.5 16.4 % 6.9 2.0 % 0.1 0.2 %
Tools 209.5 23.8 - 23.8 11.4 % 202.3 30.3 - 30.3 15.0 % 7.2 3.6 % (6.5 ) (21.5 )%
Commercial Products 188.6 22.0 - 22.0 11.7 % 187.0 27.8 - 27.8 14.9 % 1.6 0.9 % (5.8 ) (20.9 )%
Baby & Parenting 186.2 12.8 - 12.8 6.9 % 178.7 13.5 - 13.5 7.6 % 7.5 4.2 % (0.7 ) (5.2 )%
Specialty 136.9 20.2 - 20.2 14.8 % 140.0 15.3 - 15.3 10.9 % (3.1 ) (2.2 )% 4.9 32.0 %
Restructuring Costs - (18.6 ) 18.6 - - (37.8 ) 37.8 - - -
Corporate - (26.8 ) 2.5 (24.3 ) - (36.3 ) 13.5 (22.8 ) - (1.5 ) (6.6 )%
Total $ 1,518.8 $ 153.8 $ 24.0 $ 177.8 11.7 % $ 1,495.2 $ 125.5 $ 51.3 $ 176.8 11.8 % $ 23.6 1.6 % $ 1.0 0.6 %
2012 2011
Reconciliation (1) 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 $ % $ %
YE:
Home Solutions $ 1,644.0 $ 217.5 $ 4.9 $ 222.4 13.5 % $ 1,710.2 $ 228.9 $ - $ 228.9 13.4 % $ (66.2 ) (3.9 )% $ (6.5 ) (2.8 )%
Writing 1,416.2 261.9 1.2 263.1 18.6 % 1,399.3 246.9 - 246.9 17.6 % 16.9 1.2 % 16.2 6.6 %
Tools 806.1 109.8 - 109.8 13.6 % 779.6 119.1 - 119.1 15.3 % 26.5 3.4 % (9.3 ) (7.8 )%
Commercial Products 759.7 92.9 - 92.9 12.2 % 741.5 108.3 - 108.3 14.6 % 18.2 2.5 % (15.4 ) (14.2 )%
Baby & Parenting 736.1 72.7 - 72.7 9.9 % 680.4 51.6 - 51.6 7.6 % 55.7 8.2 % 21.1 40.9 %
Specialty 540.6 68.2 - 68.2 12.6 % 553.6 60.2 - 60.2 10.9 % (13.0 ) (2.3 )% 8.0 13.3 %
Impairment Charges - - - - - (382.6 ) 382.6 - - -
Restructuring Costs - (56.1 ) 56.1 - - (50.1 ) 50.1 - - -
Corporate - (115.0 ) 28.4 (86.6 ) - (125.1 ) 43.7 (81.4 ) - (5.2 ) (6.4 )%
Total $ 5,902.7 $ 651.9 $ 90.6 $ 742.5 12.6 % $ 5,864.6 $ 257.2 $ 476.4 $ 733.6 12.5 % $ 38.1 0.6 % $ 8.9 1.2 %
(1) Excluded items consist of restructuring-related and restructuring costs. Restructuring-related and restructuring costs of $34.5 million and $56.1 million, respectively, incurred during the 2012 periods relate to the European Transformation Plan and Project Renewal. For 2011, restructuring-related and restructuring costs of $37.4 million and $50.1 million, respectively, relate to the European Transformation Plan and Project Renewal. Additionally, Normalized operating income for the twelve months ended December 31, 2011 excludes incremental SG&A costs of $6.3 million resulting from the CEO transition during 2011.
(2) Normalized operating income for the three months ended September 30, 2011 and twelve months ended December 31, 2011 exclude impairment charges of $382.6 million relating primarily to the impairment of goodwill for the Baby & Parenting and Hardware businesses.
Newell Rubbermaid Inc.
Three Months Ended December 31, 2012
In Millions
Currency Analysis
By Segment
2012 2011 Year-Over-Year Increase (Decrease)
Sales as Currency Core Sales as Excluding Including Currency
Reported Impact Sales (1) Reported Currency Currency Impact
Home Solutions $ 453.1 $ (1.4 ) $ 451.7 $ 449.6 0.5 % 0.8 % 0.3 %
Writing 344.5 1.1 345.6 337.6 2.4 % 2.0 % (0.4 )%
Tools 209.5 5.0 214.5 202.3 6.0 % 3.6 % (2.4 )%
Commercial Products 188.6 0.8 189.4 187.0 1.3 % 0.9 % (0.4 )%
Baby & Parenting 186.2 3.1 189.3 178.7 5.9 % 4.2 % (1.7 )%
Specialty 136.9 1.3 138.2 140.0 (1.3 )% (2.2 )% (0.9 )%
Total Company $ 1,518.8 $ 9.9 $ 1,528.7 $ 1,495.2 2.2 % 1.6 % (0.6 )%
By Geography
United States $ 1,022.8 $ - $ 1,022.8 $ 1,000.6 2.2 % 2.2 % 0.0 %
Canada 96.3 (2.6 ) 93.7 91.6 2.3 % 5.1 % 2.8 %
Total North America 1,119.1 (2.6 ) 1,116.5 1,092.2 2.2 % 2.5 % 0.3 %
Europe, Middle East and Africa 181.2 8.1 189.3 198.1 (4.4 )% (8.5 )% (4.1 )%
Latin America 93.6 3.5 97.1 80.2 21.1 % 16.7 % (4.4 )%
Asia Pacific 124.9 0.9 125.8 124.7 0.9 % 0.2 % (0.7 )%
Total International 399.7 12.5 412.2 403.0 2.3 % (0.8 )% (3.1 )%
Total Company $ 1,518.8 $ 9.9 $ 1,528.7 $ 1,495.2 2.2 % 1.6 % (0.6 )%
(1)- "Core Sales" is determined by applying the prior year monthly exchange rates to the current year local currency monthly sales amounts, with the difference in the current year reported sales and Core Sales representing changes attributable to foreign currency translation, reported in the table as "Currency Impact".
Newell Rubbermaid Inc.
Twelve Months Ended December 31, 2012
In Millions
Currency Analysis
By Segment
2012 2011 (1) Year-Over-Year (Decrease) Increase
Sales as Currency Core Sales as Excluding Including Currency
Reported Impact Sales (2) Reported Currency Currency Impact
Home Solutions $ 1,644.0 $ 5.0 $ 1,649.0 $ 1,710.2 (3.6 )% (3.9 )% (0.3 )%
Writing 1,416.2 27.3 1,443.5 1,399.3 3.2 % 1.2 % (2.0 )%
Tools 806.1 28.3 834.4 779.6 7.0 % 3.4 % (3.6 )%
Commercial Products 759.7 8.6 768.3 741.5 3.6 % 2.5 % (1.1 )%
Baby & Parenting 736.1 11.1 747.2 680.4 9.8 % 8.2 % (1.6 )%
Specialty 540.6 10.8 551.4 553.6 (0.4 )% (2.3 )% (1.9 )%
Total Company $ 5,902.7 $ 91.1 $ 5,993.8 $ 5,864.6 2.2 % 0.6 % (1.6 )%
By Geography
United States $ 4,004.5 $ - $ 4,004.5 $ 3,915.7 2.3 % 2.3 % 0.0 %
Canada 358.8 6.0 364.8 376.3 (3.1 )% (4.7 )% (1.6 )%
Total North America 4,363.3 6.0 4,369.3 4,292.0 1.8 % 1.7 % (0.1 )%
Europe, Middle East and Africa 718.4 58.8 777.2 815.3 (4.7 )% (11.9 )% (7.2 )%
Latin America 338.9 26.2 365.1 318.6 14.6 % 6.4 % (8.2 )%
Asia Pacific 482.1 0.1 482.2 438.7 9.9 % 9.9 % 0.0 %
Total International 1,539.4 85.1 1,624.5 1,572.6 3.3 % (2.1 )% (5.4 )%
Total Company $ 5,902.7 $ 91.1 $ 5,993.8 $ 5,864.6 2.2 % 0.6 % (1.6 )%
(1)- 2011 results have been adjusted to reclassify the results of operations of the hand torch and solder business to discontinued operations.
(2)- "Core Sales" is determined by applying the prior year monthly exchange rates to the current year local currency monthly sales amounts, with the difference in the current year reported sales and Core Sales representing changes attributable to foreign currency translation, reported in the table as "Currency Impact".




Contact:
Newell Rubbermaid Inc.
Nancy O’Donnell, +1 (770) 418-7723 begin_of_the_skype_highlighting +1 (770) 418-7723 end_of_the_skype_highlighting
Vice President, Investor Relations
or
David Doolittle, +1 (770) 418-7519 begin_of_the_skype_highlighting +1 (770) 418-7519 end_of_the_skype_highlighting
Vice President, Corporate Communications


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    From: Dr_of_Microcaps2/20/2013 2:35:12 PM
       of 128
     
    George Soros' 4 New Dividend-Paying Picks With Upside Potential

    February 20, 2013 by: Dividendinvestr | includes: F, IVZ, NWL, PNC




    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)

    Business relationship disclosure: Dividendinvestr is a team of analysts. This article was written by Serkan Unal, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

    By Serkan Unal

    George Soros, one of the world's most famous investors and financiers, earned $1 billion from shorting the British pound in September 1992. He seems to have struck the same luck again last year and this so far, as his short trade on the Japanese currency has produced a gain of about $1 billion since November 2012. Soros has been making bets across asset classes and sectors based on macroeconomic events and economic theory. He currently runs a family office with some $24 billion in assets under management.

    Soros' family office recently filed its 13-F regulatory disclosure with the SEC for the fourth quarter of 2012. Based on the filing, Soros sold out of his stakes in 69 companies, while he entered 70 new positions, including several positions paying dividends. Here is a closer look at Soros' four new stocks paying dividend yields above 2.0% and boasting the potential for capital appreciation and dividend growth over the longer term. The stocks are listed based on their size in the overall portfolio.

    Ford Motor Company ( F), the second largest U.S. automaker by market share, has a dividend yield of 3.1% and a payout ratio of 29% of the current-year EPS estimate. Recently, the company doubled its quarterly dividend. Last quarter, Soros reported owning nearly $41 million worth of the stock. The company's EPS for the fourth quarter of 2012 and the whole year beat analysts' estimates; however, its 2013 outlook was below investors' expectations, given deeper anticipated losses in Europe and a break-even position in Latin America. Still, Ford's North American sales are driving growth. There is a strong pent-up demand in the U.S. as the aging vehicle fleet hit the record-high average age of 11.3 years in January 2013. This year, U.S. vehicle sales are running at an annualized rate of 15.3 million, above the five-year high of 14.5 million reported in 2012. Ford predicts that U.S. sales could grow as much as 8% in 2013. In addition, Ford's sales are booming in China and India. Based on the company's predication from 2011, Ford expects China and India sales to boost its global vehicle sales by 50% to 8 million by 2015. Despite the company's upbeat predictions, analysts at Barclays and Deutsche Bank recently downgraded the stock based on valuation, margin expansion, and anticipated "lowering expectations." Ford still looks as good value, trading at 9.4x forward earnings versus 17.1x for General Motors Co. ( GM) and 22.4x for Toyota Motor Co. ( TM).

    Invesco Ltd. ( IVZ), an asset manager, has a dividend yield of 2.5%, payout ratio of 34% of the current-year EPS estimate, and five-year annualized dividend growth of about 6.0%. Last quarter, Soros reported owning almost $40 million worth of the stock. Invesco Ltd. currently has some $712.6 billion in assets under management. The company's AUM has benefited from positive inflows into both passive and active investment vehicles. Even though the company missed analysts' expectations, mainly on bottom lines due to rising compensation costs, the company's growth outlook is sanguine. Analysts forecast the company's long-term EPS CAGR at a robust 14.6%. Its growth will be driven by rising investment flows amidst the company's broad diversification. The stock is up nearly 11% over the past 12 months and is trading close to its 52-week high. Last month, both JPMorgan and Morgan Stanley downgraded the stock based on its valuation, softer sales of its leading product, and margin expansion. The stock is currently trading at a forward P/E of 13.7x, below an industry multiple of 15.4x. Its price-to-book of 1.5 is also lower than the industry average ratio of 1.7. The stock's long-term EPS growth expectations suggest a potential for appreciation and dividend growth in the future.

    Newell Rubbermaid Inc. ( NWL), the maker of plastic items, including plastic bins and cookware, has a dividend yield of 2.5% and a payout ratio of 33% of the current-year EPS estimate. The company's quarterly dividend was slashed back in 2009, from 21 cents to 5 cents per share, but since it has risen threefold. Last quarter, Soros reported owning $33.4 million in NWL stock. Over the past four quarters, the company has been posting estimate-beating EPS results. Its cost cutting and emerging market growth have been propping up the bottom line. The company expects to see core sales growth of between 2% and 4% this year, with the EPS guidance in the range between $1.78 and $1.84. The midpoint of NWL's EPS guidance meets the analysts' EPS estimate of $1.82. The company has seen marginal, but still positive EPS revisions over the past 30 days. Its forward P/E of 13.2x is on par with its respective industry's forward earnings multiple. However, the stock is priced below industry based on a price-to-book of 3.4 (an industry price-to-book ratio is 4.3). In 2010, there were rumors that the company was a takeover target-involving Procter & Gamble ( PG) as a rumored acquirer. However, those rumors dissipated over time. Several prominent hedge funds, including Ken Griffin's Citadel Investments, Ariel Investments, and Phill Gross's Adage Capital, have positions in NWL.

    PNC Financial Services Group Inc. ( PNC), one of the largest U.S. diversified financial services organizations, has a dividend yield of 2.5% and a payout ratio of 25% of the current-year EPS estimate. The bank's quarterly dividend was slashed in 2009, from 66 cents to 10 cents per share, but since it has increased fourfold. The bank generates a large share of fee-based revenues, which may improve this year. Moreover, the bank also has a high exposure to commercial and industrial loans, including commercial real estate construction exposure, which is expected to rise smartly with the rebounding economy. In general, the strong Midwest economy, supported by farming and hydraulic fracking industries, has given support to the bank's growth. Growth is also driven by acquisitions, including that of RBC's U.S. retail banking business. Interestingly, PNC owns 36 million shares of the world's largest asset manager, BlackRock Inc. ( BLK), and derives 11% of its profit from its BLK investment. Given BLK's spectacular performance over the past several years, this PNC position has proven to be lucrative. However, it is relevant to note that some of the bank's weaknesses include a contracting net interest margin and capital ratios slightly below those of its peers. Also, the bank has an ROE of 7.2%, below its industry's average ROE of 8.3%. It is trading at 90% of book value.

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    From: Dr_of_Microcaps6/17/2013 12:39:54 PM
       of 128
     
    Newell Rubbermaid Appoints Jeremy Liebowitz to Lead Acceleration of E-Commerce GrowthProven leader will maximize online commercial presence

    Press Release: Newell Rubbermaid – 4 hours ago

    0





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    NWL27.16-0.01







    ATLANTA--(BUSINESS WIRE)--

    Newell Rubbermaid ( NWL) today announced the appointment of Jeremy Liebowitz to the newly created position of Vice President, Global E-Commerce, to lead the acceleration of the company’s online revenue growth worldwide.

    “E-commerce is our single biggest growth opportunity and an area where we expect to make substantial investments under Jeremy’s leadership,” said Mark Tarchetti, Newell Rubbermaid’s Chief Development Officer. “In this highly visible and collaborative role, Jeremy will focus on maximizing our online commercial presence with existing customers and developing a long term channel strategy to drive growth.”

    Liebowitz has a proven track record of building successful e-commerce platforms over an 18-year career, most recently as Vice President of Digital Commerce and Marketing for Jarden Corp., where he achieved significant online revenue growth multiples over five years. Previously, Liebowitz held key e-commerce roles at Limited Brands, Inc. and TracFone Wireless.

    To accelerate Newell Rubbermaid’s global e-commerce business, Liebowitz will develop a comprehensive global strategy and ensure the appropriate tools, workplans and organization development are in place to create a step change. The role will be externally focused, collaborating closely with customer development leaders to improve Newell Rubbermaid’s offering to customers.

    Liebowitz will report to Tarchetti, with a strong link to Chief Customer Officer Joe Cavaliere.

    About Newell Rubbermaid

    Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. 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.

    NWL-EX

    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 and impacts of the Company’s organizational transformation initiatives, including Project Renewal and the European Transformation Plan. 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, our ability to effectively achieve and redeploy cost savings from these transformation initiatives, as well as those factors listed in the company’s most recently filed Annual Report on Form 10-K, filed with the Securities and Exchange Commission.





    Contact:
    Newell Rubbermaid
    Nancy O’Donnell, +1 770-418-7723
    Vice President, Investor Relations
    or
    David Doolittle, +1 770-418-7519
    Vice President, Corporate Communications

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    From: Dr_of_Microcaps7/16/2013 6:09:02 PM
       of 128
     
    Newell Rubbermaid Announces Sale of Teach Platform To Skyview Capital LLC Press Release: Newell Rubbermaid – Mon, Jul 15, 2013 1:25 PM EDT 0





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    NWL26.84-0.15







    ATLANTA--(BUSINESS WIRE)--

    Newell Rubbermaid Inc. ( NWL) today announced the sale of its Teach platform, including the Mimio® and Headsprout® interactive teaching technology brands, to Skyview Capital, LLC ( www.skyviewcapital.com), a Beverly Hills, Calif., private equity firm. Terms were not disclosed. The transaction has closed with the signing of the agreement.

    “Our Growth Game Plan is designed to accelerate performance by setting clear priorities for our business. This transaction further simplifies our portfolio as we continue to invest behind our highest-potential global growth opportunities,” said Michael Polk, Newell Rubbermaid’s President and Chief Executive Officer.

    About Newell Rubbermaid

    Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. 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.





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





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    From: Dr_of_Microcaps10/3/2013 10:28:18 AM
       of 128
     
    Newell Rubbermaid Appoints Lead Creative and Media Agencies to Drive More Impactful Global MarketingConsolidates agencies to step-change effectiveness and efficiency
    Press Release: Newell Rubbermaid – 2 hours 1 minute ago

    RELATED QUOTES
    SymbolPriceChange
    NWL27.51-0.15




    ATLANTA, Oct. 3, 2013 /PRNewswire/ -- Newell Rubbermaid ( NWL) today announced a significant step in making bigger, more strategic, global investments behind its brands with the consolidation of scores of local agencies worldwide into one lead creative partner and one lead media-buying partner. The two agencies will help oversee Newell Rubbermaid's globaladvertising and promotion investment.

    Bartle Bogle Hegarty (BBH) has been selected as lead creative agency, which will have full responsibility to deliver strategy, creative execution and implementation (excluding media) in all brand-related communication channels. Part of the Publicis Groupe, BBH was named 2013 "Mid-Sized Agency of the Year" by the O'Toole Awards and is one of the most awarded advertising agencies in the world. BBH works with leading brands including Johnnie Walker, British Airways, KFC, Audi, Barclays Bank, Westin Hotels & Resorts, and Axe. The global assignment will be led by BBH New York, supported by the entire BBH global agency network including offices in London, Sao Paulo and Shanghai.

    PHD has been selected as lead media agency, which will help with overall strategic communicationplanning and be responsible for all media placements across all channels. Originally founded as the world's first planning-led media agency, PHD, part of the Omnicom Media Group, was named Adweek's "Global Media Agency of the Year" in 2012 and is a proven innovator in communications planning and buying. PHD's clients include Mondelez, Porsche, Bentley, ANZ, GlaxoSmithKline, Hyatt and Canon.

    "For the first time, we are aligning all our brands and categories behind one set of agency partners to drive big ideas that create a strong point of difference for consumers," said Richard Davies, Chief Marketing and Insights Officer of Newell Rubbermaid. "BBH and PHD are the best in the business at what they do. With their partnership, we now have the power to achieve much greater scale, reach and impact as we invest behind growing our brands worldwide."

    "Our ambition is to push the limits of what's possible for our brands," said Mark Tarchetti, Newell Rubbermaid's Chief Development Officer. "The Growth Game Plan strategy promises to accelerate growth through sharper portfolio choices and new capabilities. Our progress is becoming an increasing reality in important steps like a new state of the art design center that will open next year, investments in e-commerce and innovation, and the appointment of global creative and media agencies. These moves allow us to step-change quality while taking all the efficiencies that come with scale. Our momentum is increasingly visible in the marketplace as we make new A&P investments that are unprecedented in Newell Rubbermaid's history, and build an even stronger 2014 plan."

    The new agency relationships are effective Oct. 1, with transition work beginning immediately to ensure integrated teams are fully operational by the beginning of the year.

    About Newell Rubbermaid
    Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. 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.

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    From: Dr_of_Microcaps10/10/2013 9:36:09 AM
       of 128
     
    Newell Rubbermaid To Webcast Third Quarter 2013 Earnings Results Press Release: Newell Rubbermaid – 1 hour 44 minutes ago

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    RELATED QUOTES
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    NWL26.69




    ATLANTA--(BUSINESS WIRE)--

    Newell Rubbermaid ( NWL) today announced its third quarter 2013 earnings results will be released Friday, October 25, prior to market open, followed by a live webcast at 10:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.

    About Newell Rubbermaid

    Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. 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.



    Contact:
    Newell Rubbermaid
    Nancy O’Donnell, 770-418-7723
    Vice President, Investor Relations
    or
    David Doolittle, 770-418-7519
    Vice President, Global Communications

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    From: Dr_of_Microcaps1/21/2014 9:00:24 PM
       of 128
     
    Newell Rubbermaid to Webcast Fourth Quarter 2013 Earnings Results


    Newell Rubbermaid12 hours ago





    ATLANTA, Jan. 21, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its fourth quarter 2013 earnings results will be released Friday, January 31, prior to market open and will be followed by a live webcast at 9:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.

    About Newell Rubbermaid

    Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $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), 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.


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

    Share RecommendKeepReplyMark as Last Read


    From: Dr_of_Microcaps2/13/2014 9:33:16 PM
       of 128
     
    Newell Rubbermaid Announces Expansion and Extension of Stock Repurchase Program


    Newell Rubbermaid13 hours ago





    ATLANTA, Feb. 13, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) announced today that its Board of Directors has approved an extension and expansion to the Company's on-going share repurchase program. Under the updated plan, effective immediately, Newell Rubbermaid is authorized to repurchase up to $300 million of its outstanding shares through the end of 2016. Included in the $300 million is approximately $43 million remaining to be repurchased under its previous $300 million share repurchase program, which was authorized in August 2011 and scheduled to expire in August 2014.

    "Today's action reflects the Board's continued confidence in the company's Growth Game Plan and long term growth outlook," said Michael Polk, president and chief executive officer. "Our strong balance sheet and cash flow provide us with the flexibility to opportunistically repurchase shares while continuing to invest in our brands and other growth opportunities to drive value for our shareholders."

    Under the program, the company's common shares may be purchased through a combination of a 10b5-1 automatic trading plan and discretionary purchases on the open market or in privately negotiated transactions. The amount and timing of any purchases will depend on a number of factors, including trading price, trading volume and general market conditions.

    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, 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 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; our ability to consummate the transactions contemplated by the Accelerated Share Repurchase Plan; and those factors listed in the company's most recently filed Quarterly Report on Form 10-Q and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.


    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_Microcaps4/19/2014 9:59:14 AM
       of 128
     
    Newell Rubbermaid to Webcast First Quarter 2014 Earnings Results


    Newell RubbermaidApril 16, 2014 8:00 AM





    ATLANTA, April 16, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its first quarter 2014 earnings results will be released Friday, May 2, prior to market open and will be followed by a live webcast at 8:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.

    About Newell Rubbermaid

    Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of approximately $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.


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

    Share RecommendKeepReplyMark as Last Read


    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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