Newell Rubbermaid (NYSE: NWL) announced it will reaffirm its fiscal year
2015 outlook, as provided in its second quarter 2015 earnings press
release dated July 31, 2015, during its presentation today at the
Barclays Global Consumer Staples Conference.
Newell Rubbermaid is reaffirming its full year 2015 guidance as follows:
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-- Core sales growth:
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4.0% to 5.0%
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-- Currency impact:
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(5.0)% to (6.0)%
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-- Acquisitions, net of divestitures:
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4.0% to 5.0%
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-- Net sales growth:
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3.0% to 4.0%
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-- Normalized EPS:
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$2.14 to $2.20
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A reconciliation of the 2015 earnings outlook is as follows:
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Year Ending
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December 31, 2015
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Diluted earnings per share
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$1.69 to $1.75
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Graco product recall
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$0.03
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Restructuring and other Product Renewal costs
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$0.35 to $0.45
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Acquisition and integration costs
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$0.01
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Devaluation of the Venezuelan Bolivar
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$0.01
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Discontinued operations
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$(0.01) to $0.01
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Normalized earnings per share
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$2.14 to $2.20
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President and Chief Executive Officer Michael Polk will present today at
4:30 p.m. ET. The presentation will be webcast live and may be accessed
through Events & Presentations in the Investor Relations section of the
Newell Rubbermaid website at www.newellrubbermaid.com.
The webcast will be archived and available for replay.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of
Regulation G promulgated by the Securities and Exchange Commission and
includes a reconciliation of these non-GAAP financial measures to the
most directly comparable financial measures calculated in accordance
with GAAP.
The company uses certain non-GAAP financial measures that are included
in this press release and the additional financial information both in
explaining its results to stockholders and the investment community and
in its internal evaluation and management of its businesses. The
company’s management believes that these non-GAAP financial measures and
the information they provide are useful to investors since these
measures (a) permit investors to view the company’s performance using
the same tools that management uses to evaluate the company’s past
performance, reportable business segments and prospects for future
performance and (b) determine certain elements of management’s incentive
compensation.
The company’s management believes that core sales provides a more
complete understanding of underlying sales trends by providing sales on
a consistent basis as it excludes the impacts of acquisitions, planned
or completed divestitures and changes in foreign currency from
year-over-year comparisons. The effect of foreign currency on reported
sales is determined by applying a fixed exchange rate, calculated as the
12-month average in the prior year, to the current and prior year local
currency sales amounts (excluding acquisitions and planned and completed
divestitures), with the difference in these two amounts being the
increase or decrease 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’s management believes that “normalized”
earnings per share, which excludes restructuring and other expenses and
one-time and other events such as costs related to product recalls, the
extinguishment of debt, certain tax benefits and charges, impairment
charges, pension settlement charges, discontinued operations, costs
related to the acquisition and integration of acquired businesses,
advisory costs for process transformation and optimization initiatives,
dedicated personnel costs related to transformation initiatives under
Project Renewal, asset devaluations resulting from the adoption and
continued use of the SICAD Venezuelan Bolivar exchange rate and certain
other items, is useful because it provides investors with a meaningful
perspective on the current underlying performance of the company’s core
ongoing operations. The company also uses core sales and normalized
earnings per share as two of the three performance criteria in its
management cash bonus plan, and the company uses core sales and
normalized earnings per share as two of the three performance criteria
in its performance-based equity compensation arrangements.
The company determines the tax effect of the items excluded from
normalized diluted earnings per share by applying the estimated
effective rate for the applicable jurisdiction in which the pre-tax
items were incurred, and for which realization of the resulting tax
benefit, if any, is expected. In certain situations in which an item
excluded from reported results impacts income tax expense, the company
uses a “with” and “without” approach to determine normalized income tax
expense.
While the company believes that these non-GAAP financial measures are
useful in evaluating the company’s performance, this information should
be considered as supplemental in nature and not as a substitute for or
superior to the related financial information prepared in accordance
with GAAP. Additionally, these non-GAAP financial measures may differ
from similar measures presented by other companies.
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature
constitute forward-looking statements. These forward-looking statements
relate to information or assumptions about the effects of sales,
income/(loss), earnings per share, operating income, operating margin or
gross margin improvements or declines, Project Renewal, capital and
other expenditures, cash flow, dividends, restructuring and other
project costs, costs and cost savings, inflation or deflation,
particularly with respect to commodities such as oil and resin, debt
ratings, changes in exchange rates, product recalls, expected benefits
and financial results from recently completed acquisitions and planned
and completed divestitures and management's plans, projections and
objectives for future operations and performance. These statements are
accompanied by words such as "anticipate," "expect," "project," "will,"
"believe," "estimate" and similar expressions. Actual results could
differ materially from those expressed or implied in the forward-looking
statements. Important factors that could cause actual results to differ
materially from those suggested by the forward-looking statements
include, but are not limited to, our dependence on the strength of
retail, commercial and industrial sectors of the economy in light of the
continuation or escalation of the global economic slowdown or regional
sovereign debt issues; currency fluctuations; competition with other
manufacturers and distributors of consumer products; major retailers'
strong bargaining power and consolidation of our retail customers;
changes in the prices of raw materials and sourced products and our
ability to obtain raw materials and sourced products in a timely manner
from suppliers; our ability to develop innovative new products and to
develop, maintain and strengthen our end-user brands, including the
ability to realize anticipated benefits of increased advertising and
promotion spend; product liability, product recalls or regulatory
actions; our ability to expeditiously close facilities and move
operations while managing foreign regulations and other impediments; a
failure of one of our key information technology systems or related
controls; the potential inability to attract, retain and motivate key
employees; future events that could adversely affect the value of our
assets and require impairment charges; our ability to improve
productivity and streamline operations; changes to our credit ratings;
significant increases in the funding obligations related to our pension
plans due to declining asset values, declining interest rates or
otherwise; the imposition of tax liabilities greater than our provisions
for such matters; the risks inherent in our foreign operations,
including exchange controls and pricing restrictions; our ability to
complete planned acquisitions and divestitures; our ability to realize
the expected benefits and financial results from our recently acquired
businesses and planned and completed divestitures; and those factors
listed in our 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.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of
consumer and commercial products with 2014 sales of $5.7 billion and a
strong portfolio of leading brands, including Sharpie®, Paper Mate®,
Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®,
Contigo®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica®,
Baby Jogger® 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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