Consumer and commercial products maker Newell Rubbermaid Inc. (NWL) is slated to report its fourth-quarter results before the market opens Friday. Wall Street analysts forecast a significant year-over-year rise in the company's earnings per share for the quarter, while revenue is expected to be lower than last year.
Newell markets well-known brands such as Rubbermaid food storage, home organization, and refuse container products; Sharpie, PaperMate, Parker and Waterman writing instruments; Goody beauty and personal grooming products; Dymo home and business labeling solutions etc.
At the time of the third-quarter results announcement in last October, the company, which makes Rubbermaid containers, has projected fourth-quarter normalized earnings per share of $0.23 to $0.28. Including restructuring costs and impairment charges, earnings per share for the fourth quarter are expected to be in the range of $0.16 - $0.21.
Newell also sees a 2% to 4% decline in its net sales for the fourth quarter. Core sales are expected to be flat to slightly negative, and product line exits are projected to reduce sales by another 3% to 5%. Meanwhile, foreign currency translation is expected to have a positive sales impact of about 2%.
On average, 14 analysts polled by Thomson Reuters estimate a profit of $0.27 per share for the fourth quarter on sales of $1.41 billion. Analysts' forecast typically excludes one-time items.
In the year-ago fourth quarter, the company had earned $0.11 per share with sales totaling $1.45 billion.
Newell has also lifted its earnings forecast for fiscal 2009. The company's normalized earnings per share are now projected to be in the range of $1.27 to $1.32 for the full-year 2009. In July, the company had lifted its 2009 guidance for normalized earnings to $1.15 per share to $1.30 per share from its prior outlook range of $1.00 per share to $1.25 per share. Including restructuring costs and impairment charges, Newell's earnings per share for the year is anticipated to be between $0.93 and $0.98.
Newell continues to expect that net sales for fiscal 2009 will be at the unfavorable end of its guidance of a 10% to 15% decline. Core sales are expected to decline in the high single digit percent range. Meanwhile product line exits are expected to contribute 4% to 6% of the sales decline, foreign currency translation is expected to reduce sales by 2%. Further, acquisitions are expected to contribute about 1% of the sales growth.
For fiscal 2009, Wall Street analysts expect earnings of $1.32 per share on revenues of $5.56 billion.
In the preceding third quarter, Newell reported higher profit, helped by lower costs and expenses despite a drop in revenues. The Atlanta, Georgia-based company's third-quarter net income controlling interest increased to $85.5 million or $0.28 per share from $55 million or $0.20 per share last year. Net sales declined 17.7% to $1.449 billion from $1.760 billion in the comparable quarter of 2008.
Last month, Newell appointed Juan Figuereo as Executive Vice President and Chief Financial Officer. He replaced Patrick Robinson, who on October 7, 2009 had announced his plan to retire as Executive Vice President and Chief Financial Officer.
Figuereo most recently served as Executive Vice President and finance chief of Cott Corp. Inc. (COT), a supplier of retailer-branded soft drinks. Prior to joining Cott, Figuereo was Vice President of Mergers & Acquisitions at Wal-Mart International (WMT).
Earlier this week, Newell's rival Cooper Industries Plc (CBE) reported a 16% increase in its profit for the fourth quarter from last year, as lower costs and charges helped the company to offset a 17.5% decline in revenues. Cooper's net income increased to $128.8 million or $0.76 per share from $111.1 million or $0.65 per share a year ago. Quarterly revenues were $1.26 billion, down from $1.52 billion in the comparable quarter of fiscal 2008.
Newell's another peer, Fortune Brands Inc. (FO) is slated to release its fourth-quarter results today. Street analysts are of the view that the company will earn $0.52 per share in the quarter on sales of $1.67 billion.
Fortune expects its fourth-quarter results to reflect the impact of adverse operating leverage in the seasonally small quarter for golf and home products, as well as a double-digit year-over-year boost in brand investment behind key spirits brands.
Fortune has lifted the bottom end of its fiscal 2009 earnings forecast range, and now expects earnings from continuing operations before charges/gains in the range of $2.10 per share to $2.30 per share, compared to its previous guidance range of $2.00 per share to $2.30 per share. On a GAAP basis, the company is currently targeting earnings per share from continuing operations of $1.60 to $1.80. Analysts anticipate the company to earn $2.28 per share for the full-year 2009.
NWL closed Thursday's trading at $14.20, down $0.06, on a volume of 4.51 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.