Consumer and commercial products company Newell Rubbermaid, Inc. (NWL) reported Friday a profit for the fourth quarter compared to a loss last year, boosted by better margins as well as significantly lower charges from last year, despite a 2.1% sales decline.
Excluding items, normalized earnings per share for the quarter climbed, and came in line with analysts' expectations. The company also provided earnings forecast for the full-year 2010, below current consensus estimate.
In a statement, president and chief executive officer, Mark Ketchum said, "We are pleased to report solid fourth quarter results which demonstrate a number of positive trends as we finished out the year. In a challenging year, we grew market share in the majority of our businesses, significantly improved both gross and operating margins, lowered working capital to generate increased operating cash flow, and reduced structural costs while continuing to invest in support of our brands."
Fourth-Quarter Results
The Atlanta, Georgia-based company posted net loss of $60.6 million or $0.20 per share for the fourth quarter, compared to a net loss of $256.7 million or $0.92 per share in the prior-year quarter.
The results for the latest quarter primarily include $0.04 per share of project acceleration restructuring costs, while the year-ago quarter included $1.06 per share of non-cash impairment charges, $0.05 per share of project acceleration restructuring costs, and tax benefits of $0.09 per share.
Excluding items, normalized earnings for the quarter climbed to $75.7 million or $0.27 per share from $29.4 million or $0.11 per share reported in the year-ago quarter.
On average, ten analysts polled by Thomson Reuters expected the company to earn $0.27 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 2.1% to $1.42 billion from $1.45 billion in the same quarter last year, but topped ten Wall Street analysts' consensus estimate of $1.41 billion. The sales decline was attributable to core sales decline of 1% and a 4% negative impact due to planned product line exits, partially offset by 3% favorable foreign currency translation.
Segmental Details
Sales for home & family segment for the fourth quarter decreased 1.7% to $605.5 million from $616.1 million in the prior-year quarter. Office products sales for declined 3.8% to $411.2 million from $427.3 million in the same quarter last year. Tools, hardware & commercial products sales for the quarter totaled $403.7 million, down 1.1% from $408.1 million in the year-ago quarter.
Geographically, sales in the U.S. dropped 3.8% to $939.7 million from last year, Canada contributed $87.7 million to total sales, down 6.9% from a year ago. Sales from Europe, Middle East, and Africa was $230.3 million, up 1,5% from the year-ago quarter. In Latin America, sales grew 12.9% year-over-year to $73.5 million. Asia Pacific sales edged up 0.8% to $89.2 million from the prior-year quarter.
Other Metrics
Gross margin for the fourth quarter rose 20.9% to $525.8 million from $434.8 million in the prior-year quarter, and gross margin percentage climbed 700 basis points to 37.0% from last year's 30.0%, primarily reflecting positive impact from product line exits, pricing and lower input costs. Selling, general and administrative expenses were $383.5 million or 27.0% of sales, up from $354.5 million or 24.4% of sales, in the comparable quarter a year ago. Restructuring charges for the quarter were $13 million, compared to $19 million last year. The prior-year quarter included $299.4 million of impairment charges.
Operating income for the quarter was $129.3 million, compared to a loss of $238.1 million in the prior-year quarter, while excluding charges it was $142.3 million or 10.0% of sales, sharply up from $80.3 million or 5.5% of sales, in the year-ago quarter.
Capital expenditure for the quarter totaled $45.6 million, down from $35.7 million in the year-ago quarter. The company ended the fourth quarter with cash and cash equivalents of $278.3 million, compared to $275.4 million at end of the prior-year quarter.
Last month, Newell appointed Juan Figuereo as executive vice president and chief financial officer. Figuereo succeeded Patrick Robinson, who had announced his plan to retire from the position. 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 served as vice president of mergers & acquisitions at Wal-Mart International (WMT).
Full-Year Highlights
For fiscal 2009, the company reported net income of $285.5 million or $0.97 per share, compared to a net loss was $52.3 million or $0.18 per share reported in fiscal 2008.
Excluding items, normalized earnings for the year grew to $369.3 million or $1.31 per share from $338.7 million or $1.21 per share in the previous year. Analysts expected the company to report earnings or $1.32 per share for fiscal 2009.
Net sales for the full-year 2009 declined 13.8% to $5.58 billion from $6.47 billion in the full year 2008. The Street was looking for full-year 2009 revenues of 5.56 billion.
Looking Ahead.....
"The combination of top line sales stabilization and outstanding margin performance allowed us to ramp up strategic spending in the fourth quarter in order to drive growth in 2010. We look forward to capitalizing on the progress we've made in the implementation of our strategy as we enter 2010 with a stronger portfolio that is more responsive to consumer understanding, product innovation and brand marketing," Ketchum added.
For fiscal 2010, the company expects earnings in a range of $1.15 to $1.25 per share, and normalized earnings in the range of $1.35 to $1.45 per share, including an estimated $0.04 to $0.05 per share unfavorable currency impact. Analysts currently expect full-year 2010 earnings of $1.47 per share.
The company also projects core sales to increase in the low single digits in fiscal 2010, along with a 2% decline from planned product exits and a slightly positive impact from foreign currency. Gross margin is anticipated to improve 75 to 100 basis points, and capital expenditures are anticipated at about $160 million.
Stock Quote
NWL closed Thursday's regular trading session at $14.20, down $0.12 on a volume of 4.60 million shares, higher than the three-month average volume of 3.29 million shares. In the past 52-week period, the stock has been trading in a broad range of $4.51 to $16.10.
For comments and feedback contact: editorial@rttnews.com
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.