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Newell Brands Adjusts Guidance For Divestitures Of Waddington And Rawlings

Newell Brands (NWL) adjusted its 2018 full year guidance for normalized EPS to a range of $2.45 to $2.65 from its previous guidance range of $2.65 to $2.85. Adjusted net sales guidance is $8.7 billion to $9.0 billion, from prior guidance range of $14.4 billion to $14.8 billion. The company said the 2018 adjustments to full year guidance for the divestiture of Waddington and Rawlings are approximately $0.20 of normalized EPS and $250 million of operating cash flow, including incremental cash taxes on the transactions.

For the second-quarter, normalized net income for the total company was $401 million, or $0.82 per share, compared with $422 million, or $0.87 per share, in the prior year.

Second-quarter net sales were $2.2 billion, compared to $2.5 billion in the prior year, largely attributable to the new revenue recognition standard, lost sales from divestitures completed in 2017, and the transitory but significant volume declines in Baby related to the Toys 'R' Us liquidation of U.S. stores and in Writing related to significant inventory destocking in the office superstore and distributive trade channels. Total company core sales declined 6.2 percent, driven largely by a 14.5 percent decline in the Learning & Development Segment (Writing and Baby) and softness in the coolers, tents and fresh preserving businesses related to the late start to Spring in most of the U.S.

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