Newell Rubbermaid Reports Solid Fourth Quarter 2012 Results and Provides 2013 Guidance
Newell Rubbermaid (NYSE: 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
$71.7 million in the prior year.
A reconciliation of the fourth quarter 2012 and 2011 results is
as follows:
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Q4 2012
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Q4 2011*
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Diluted earnings per share (as reported)
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$
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0.35
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$
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0.27
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Restructuring and restructuring-related costs
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$
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0.06
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$
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0.12
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Income tax – incremental contingencies
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$
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0.01
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$
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0.00
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Loss related to the extinguishment of debt
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$
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0.01
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$
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0.00
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Normalized EPS
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$
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0.43
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$
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0.40
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* totals may not add due to rounding
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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 $222.9 million in the prior year, principally
related to lower expenditures on SAP implementations.
A reconciliation of the twelve months 2012 and 2011 results is
as follows:
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2012
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2011*
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Diluted earnings per share (as reported)
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$
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1.37
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$
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0.42
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Impairment charges
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$
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0.00
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$
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1.03
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Restructuring and restructuring-related costs
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$
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0.24
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$
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0.24
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Discontinued operations
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$
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(0.01
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)
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$
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0.03
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CEO transition costs
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$
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0.00
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$
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0.02
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Income tax– discrete contingencies,
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expiration of statutes of limitation and
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resolution of examinations
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$
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0.08
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$
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(0.17
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)
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Loss related to the extinguishment of debt
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$
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0.02
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$
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0.01
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Normalized EPS
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$
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1.70
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$
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1.59
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* totals may not add due to rounding
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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
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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:
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FY 2013
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Diluted earnings per share
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$1.54 to $1.60
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Restructuring and restructuring-related costs
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$0.21 to $0.27
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Normalized EPS
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$1.78 to $1.84
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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.
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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(in millions, except per share data)
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Three Months Ended December 31,
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YOY
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2012
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2011
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% Change
|
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Net sales
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$
|
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
|
%
|
|
|
|
|
|
|
|
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|
Selling, general &
|
|
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|
|
|
|
administrative expenses
|
|
|
382.6
|
|
|
|
393.3
|
|
|
(2.7
|
)%
|
% of sales
|
|
|
25.2
|
%
|
|
|
26.3
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%
|
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|
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|
Restructuring costs
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|
18.6
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|
|
|
37.8
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|
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|
OPERATING INCOME
|
|
|
153.8
|
|
|
|
125.5
|
|
|
22.5
|
%
|
% of sales
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|
|
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".
|