Nyse World Leaders Index
Index Chart
From Jul 2019 to Jul 2024
![Click Here for more Nyse World Leaders Index Charts. Click Here for more Nyse World Leaders Index Charts.](/p.php?pid=staticchart&s=DJI%5EI%5CNWL&p=8&t=15)
Sales Growth Above Guidance, Normalized EPS at High End of Expectations
ATLANTA, July 31, 2008 /PRNewswire-FirstCall/ -- Newell Rubbermaid (NYSE: NWL) today announced its second quarter 2008 financial results.
Net sales grew 7.8 percent to $1.83 billion in the second quarter, compared to $1.69 billion in the prior year. The acquisitions of Technical Concepts and Aprica contributed 4.6 percent. Internal sales growth, which excludes the effect of significant acquisitions, was 3.2 percent. Double-digit increases in the Rubbermaid Commercial, Rubbermaid Food and European and Asia Pacific Office Products businesses, as well as high single digit growth in the Baby & Parenting Essentials business, led the sales improvement, offsetting declines in the North American Office Products, Tools & Hardware and Decor businesses. Foreign currency contributed 2.9 percent.
"We were pleased to deliver second quarter results in line with expectations despite significant cost inflation and a challenging U.S. economy," said Mark Ketchum, president and chief executive officer of Newell Rubbermaid. "Looking forward, we are taking decisive action to strengthen our portfolio and protect the company's margins and profitability. These previously announced initiatives include aggressive pricing increases and the restructuring of our product portfolio to reduce exposure to commodity-like product lines. In addition, we will continue our strategy of investing in innovation and brand building. We are confident that these actions will position Newell Rubbermaid as a stronger, less volatile and more profitable company and will enhance long-term shareholder value."
Gross margin during the second quarter was 34.1 percent, down 160 basis points from last year, as higher productivity, savings from Project Acceleration and favorable pricing were more than offset by significant increases in cost inflation.
Excluding Project Acceleration restructuring costs and related impairment charges of $69.4 million in 2008 and $15.5 million in 2007, operating income was $230.3 million, compared to $248.3 million in the prior year, reflecting the impact of higher cost inflation and the company's continued investment in strategic brand building activities and corporate initiatives.
Normalized earnings, which exclude Project Acceleration restructuring costs and related impairment charges, were $0.49 per diluted share, consistent with the company's guidance and down 12 percent to last year's normalized EPS of $0.55. (A reconciliation of the results "as reported" to results "excluding charges" is included below.)
Income from continuing operations, as reported, was $92.5 million, or $0.33 per diluted share, compared to $143.2 million, or $0.51 per diluted share, in the prior year.
Operating cash flow was $1.9 million, compared to $158.3 million for the prior year. The difference was largely attributable to timing of cash payments and lower net income. Capital expenditures were $38.2 million in the second quarter, compared to $36.4 million for the prior year.
A reconciliation of the second quarter 2008 and last year's results is as follows:
Q2 2008 Q2 2007
Diluted earnings per share from
continuing operations (as reported): $0.33 $0.51
Project Acceleration restructuring costs $0.16 $0.04
Diluted earnings per share from
continuing operations (excluding charges): $0.49 $0.55
One-time event - -
"Normalized" EPS: $0.49 $0.55
Six Months Results
Net sales for the six months ended June 30, 2008 grew 5.9 percent to $3.26 billion, compared to $3.08 billion in the prior year. The acquisitions of Technical Concepts and Aprica together contributed 2.5 percent of sales growth. Internal sales growth, which excludes the effect of significant acquisitions, was 3.4 percent for the six months. Double-digit increases in the Rubbermaid Commercial, Rubbermaid Food and European and Asia Pacific Office Products businesses and high single digit growth in the Home & Family segment led the sales improvement, offsetting declines in the North American Office Products and Decor businesses. Foreign currency contributed 3.1 percent.
Gross margin was 34.2 percent, a 90 basis point decline versus prior year results, primarily as a result of dramatically higher cost inflation.
Normalized earnings, which exclude Project Acceleration restructuring costs and related impairment charges and one-time tax benefits, were $0.76 per share, as compared with the prior year's result of $0.83 per share. (A reconciliation of the results "as reported" to results "excluding charges" is included below.)
Income from continuing operations, as reported, was $149.9 million, or $0.54 per share, compared to $208.3 million, or $0.75 per share, in the prior year.
Net cash used in operating activities was $121.3 million, compared to a source of $172.8 million in the prior year. Capital expenditures were $78.2 million, compared to $69.0 million for the prior year.
A reconciliation of the first six months 2008 and last year's results is as follows:
YTD Q2 2008 YTD Q2 2007
Diluted earnings per share from
continuing operations (as reported) $0.54 $0.75
Project Acceleration restructuring costs $0.22 $0.09
Diluted earnings per share from
continuing operations (excluding charges) $0.76 $0.84
Tax benefits - ($0.01)
"Normalized" EPS: $0.76 $0.83
2008 Full Year Guidance
The company reiterated its guidance for net sales growth of between six and eight percent for the full year, including the impact of the Technical Concepts and Aprica acquisitions. Internal sales growth, which excludes the effect of significant acquisitions, continues to be projected at between two and four percent for the full year, in large part driven by stronger foreign currency in combination with internal sales growth in the Rubbermaid Commercial and Rubbermaid Food businesses and the Home & Family segment. The impact of recently announced pricing initiatives will be largely offset by anticipated volume declines related to the exiting of certain product lines.
Due to dramatic increases in raw material and sourced finished goods inflation, which are expected to more than offset pricing, ongoing productivity improvements and Project Acceleration savings, the company now anticipates gross margin will contract 100 to 175 basis points versus last year. The company remains committed to increasing its investment in strategic brand building and corporate initiatives.
Consistent with the guidance provided in its July 15 press release, the company expects normalized earnings of between $1.40 and $1.60 per diluted share.
As a result primarily of lower net income and the timing of certain working capital items, operating cash flow is now expected to be between $350 million and $400 million for the full year, compared to previous guidance of between $600 million and $650 million. This guidance reflects the company's expectation of a significant improvement in cash flow in the back half of the year compared with the first six months of 2008 due to seasonality of the business and planned actions to reduce working capital. The cash flow guidance provided assumes approximately $80 million in restructuring cash payments. Capital expenditures projections are unchanged at $160 to $180 million.
2008 Third Quarter Guidance
For the third quarter, the company anticipates net sales growth of between six and seven percent and internal sales growth of two to four percent, driven primarily by the impact of favorable foreign currency and continued strength in Rubbermaid Commercial, Rubbermaid Food, our international businesses and the Home & Family segment.
The company expects to generate normalized earnings in a range from $0.31 to $0.35 per diluted share, as compared with $0.52 last year. The expected decline is a result of higher cost inflation in raw materials and sourced products, and continued investment in strategic initiatives.
A reconciliation of the third quarter and full year 2008 earnings outlook is as follows:
Q3 2008 FY 2008
Diluted earnings per share from
continuing operations (as reported): $0.11 - $0.15 $0.78 - $0.91
Project Acceleration restructuring costs $0.05 to $0.09 $0.46 to $0.59
Diluted earnings per share from
continuing operations (excluding charges): $0.18 - $0.22 $1.27 - $1.47
One-time event $0.13 $0.13
"Normalized" EPS: $0.31 - $0.35 $1.40 - $1.60
"One-time event" reflects the net of tax impact of the company's third quarter purchase of a call option with respect to its $250 million of 6.35% Reset notes due 2028 for approximately $52 million. The call option holder had the right to remarket these notes in July 2008 and again in July 2018. The company utilized its commercial paper program to fund the purchase of the call option and the redemption of the notes in order to pursue more favorable financing terms.
Conference Call
The company's second quarter 2008 earnings conference call is scheduled for today, July 31, 2008, at 9:00 a.m. 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 http://www.newellrubbermaid.com/. The webcast will be available for replay for two weeks. A brief supporting slide presentation will be available prior to the call under Quarterly Earnings in the Investor Relations section on the company's Web site.
Caution Concerning Forward-Looking Statements
The 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 Project Acceleration, sales, income/(loss), earnings per share, operating income or gross margin improvements or declines, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, inflation, 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 economies; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products; 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 implement successfully information technology solutions throughout our organization; our ability to improve productivity and streamline operations; our ability to refinance short term debt on terms acceptable to us; the risks inherent in our foreign operations and those factors listed in the company's most recent quarterly report on Form 10-Q, and Exhibit 99.1, 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.
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.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with sales of over $6 billion and a strong portfolio of brands, including Rubbermaid(R), Sharpie(R), Graco(R), Calphalon(R), Irwin(R), Lenox(R), Levolor(R), Paper Mate(R), Dymo(R), Waterman(R), Parker(R), Goody(R), BernzOmatic(R) and Amerock(R). The company is headquartered in Atlanta, Ga., and has approximately 22,500 employees worldwide.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, http://www.newellrubbermaid.com/ .
NWL-EA
Newell Rubbermaid Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share data)
Reconciliation of Results "As Reported" to Results "Excluding Charges"
Three Months Ended June 30,
2008
As Reported Charges(1) Excl.
Charges
Net sales $1,825.1 $- $1,825.1
Cost of products sold 1,201.9 - 1,201.9
GROSS MARGIN 623.2 - 623.2
% of sales 34.1% 34.1%
Selling, general &
administrative expenses 392.9 - 392.9
% of sales 21.5% 21.5%
Restructuring costs 69.4 (69.4) -
OPERATING INCOME 160.9 69.4 230.3
% of sales 8.8% 12.6%
Nonoperating expenses:
Interest expense, net 38.7 - 38.7
Other expense, net 0.8 - 0.8
39.5 - 39.5
INCOME BEFORE INCOME TAXES 121.4 69.4 190.8
% of sales 6.7% 10.5%
Income taxes 28.9 25.5 54.4
Effective rate 23.8% 28.5%
INCOME FROM CONTINUING
OPERATIONS 92.5 43.9 136.4
% of sales 5.1% 7.5%
Discontinued operations, net of tax:
Net loss - - -
NET INCOME $92.5 $43.9 $136.4
% of sales 5.1% 7.5%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.33 $0.16 $0.49
Diluted $0.33 $0.16 $0.49
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $- $- $-
Diluted $- $- $-
EARNINGS PER SHARE:
Basic $0.33 $0.16 $0.49
Diluted $0.33 $0.16 $0.49
AVERAGE SHARES OUTSTANDING:
Basic 277.1 277.1
Diluted 278.2 286.5
Three Months Ended June 30,
2007
As Excl. YOY
Reported Charges(2) Charges % Change
Net sales $1,693.1 $- $1,693.1 7.8%
Cost of products sold 1,087.5 - 1,087.5
GROSS MARGIN 605.6 - 605.6 2.9%
% of sales 35.8% 35.8%
Selling, general &
administrative expenses 357.3 - 357.3 10.0%
% of sales 21.1% 21.1%
Restructuring costs 15.5 (15.5) -
OPERATING INCOME 232.8 15.5 248.3 (7.2)%
% of sales 13.7% 14.7%
Nonoperating expenses:
Interest expense, net 27.5 - 27.5
Other expense, net 1.5 - 1.5
29.0 - 29.0 36.2%
INCOME BEFORE INCOME TAXES 203.8 15.5 219.3 (13.0)%
% of sales 12.0% 13.0%
Income taxes 60.6 4.1 64.7 (15.9)%
Effective rate 29.7% 29.5%
INCOME FROM CONTINUING
OPERATIONS 143.2 11.4 154.6 (11.8)%
% of sales 8.5% 9.1%
Discontinued operations, net of
tax:
Net loss (1.0) 1.0 -
NET INCOME $142.2 $12.4 $154.6 (11.8)%
% of sales 8.4% 9.1%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.52 $0.04 $0.56
Diluted $0.51 $0.04 $0.55
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.00) $0.00 $-
Diluted $0.00 $(0.00) $-
EARNINGS PER SHARE:
Basic $0.52 $0.04 $0.56
Diluted $0.51 $0.04 $0.55
AVERAGE SHARES OUTSTANDING:
Basic 276.0 276.0
Diluted 286.1 286.1
(1) Charges excluded from "as reported" results for 2008 consist of $69.4
million of restructuring costs, including impairment charges, and the
associated tax effects.
(2) Charges excluded from "as reported" results for 2007 consist of $15.5
million of restructuring costs, including impairment charges, and the
associated tax effects and a $1.0 million net loss related to
discontinued operations.
Newell Rubbermaid Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share data)
Reconciliation of Results "As Reported" to Results "Excluding Charges"
Six Months Ended June 30,
2008
As Reported Charges(1) Excl.
Charges
Net sales $3,258.8 $- $3,258.8
Cost of products sold 2,145.1 - 2,145.1
GROSS MARGIN 1,113.7 - 1,113.7
% of sales 34.2% 34.2%
Selling, general &
administrative expenses 753.9 - 753.9
% of sales 23.1% 23.1%
Restructuring costs 87.8 (87.8) -
OPERATING INCOME 272.0 87.8 359.8
% of sales 8.3% 11.0%
Nonoperating expenses:
Interest expense, net 64.5 - 64.5
Other expense, net 1.0 - 1.0
65.5 - 65.5
INCOME BEFORE INCOME TAXES 206.5 87.8 294.3
% of sales 6.3% 9.0%
Income taxes 56.6 27.3 83.9
Effective rate 27.4% 28.5%
INCOME FROM CONTINUING
OPERATIONS 149.9 60.5 210.4
% of sales 4.6% 6.5%
Discontinued operations, net of tax:
Net loss (0.5) 0.5 -
NET INCOME $149.4 $61.0 $210.4
% of sales 4.6% 6.5%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.54 $0.22 $0.76
Diluted $0.54 $0.22 $0.76
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.00) $0.00 $-
Diluted $(0.00) $0.00 $-
EARNINGS PER SHARE:
Basic $0.54 $0.22 $0.76
Diluted $0.54 $0.22 $0.76
AVERAGE SHARES OUTSTANDING:
Basic 277.0 277.0
Diluted 278.2 278.2
Six Months Ended June 30,
2007
As Excl. YOY
Reported Charges(2) Charges % Change
Net sales $3,077.5 $- $3,077.5 5.9%
Cost of products sold 1,997.2 - 1,997.2
GROSS MARGIN 1,080.3 - 1,080.3 3.1%
% of sales 35.1% 35.1%
Selling, general &
administrative expenses 695.7 - 695.7 8.4%
% of sales 22.6% 22.6%
Restructuring costs 31.0 (31.0) -
OPERATING INCOME 353.6 31.0 384.6 (6.4)%
% of sales 11.5% 12.5%
Nonoperating expenses:
Interest expense, net 54.9 - 54.9
Other expense, net 2.3 - 2.3
57.2 - 57.2 14.5%
INCOME BEFORE INCOME TAXES 296.4 31.0 327.4 (10.1)%
% of sales 9.6% 10.6%
Income taxes 88.1 6.7 94.8 (11.5)%
Effective rate 29.7% 29.0%
INCOME FROM CONTINUING
OPERATIONS 208.3 24.3 232.6 (9.5)%
% of sales 6.8% 7.6%
Discontinued operations, net of
tax:
Net loss (16.8) 16.8 -
NET INCOME $191.5 $41.1 $232.6 (9.5)%
% of sales 6.2% 7.6%
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS:
Basic $0.75 $0.09 $0.84
Diluted $0.75 $0.09 $0.84
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS:
Basic $(0.06) $0.06 $-
Diluted $(0.06) $0.06 $-
EARNINGS PER SHARE:
Basic $0.69 $0.15 $0.84
Diluted $0.69 $0.15 $0.84
AVERAGE SHARES OUTSTANDING:
Basic 275.9 275.9
Diluted 277.9 277.9
(1) Charges excluded from "as reported" results for 2008 consist of $87.8
million of restructuring costs, including impairment charges, and the
associated tax effects and a $0.5 million net loss related to
discontinued operations.
(2) Charges excluded from "as reported" results for 2007 consist of $31.0
million of restructuring costs, including impairment charges, and the
associated tax effects and a $16.8 million net loss related to
discontinued operations.
Newell Rubbermaid Inc. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions)
June 30, June 30,
Assets: 2008 2007
Cash and cash equivalents $211.4 $162.8
Accounts receivable, net 1,312.7 1,215.3
Inventories, net 1,141.3 973.5
Deferred income taxes 109.6 96.5
Prepaid expenses and other 137.1 138.9
Total Current Assets 2,912.1 2,587.0
Property, plant and equipment, net 675.3 707.3
Goodwill 3,087.1 2,496.8
Other intangible assets, net 657.0 483.5
Other assets 232.1 229.0
Total Assets $7,563.6 $6,503.6
Liabilities and Stockholders' Equity:
Accounts payable $656.8 $638.5
Accrued compensation 108.4 122.3
Other accrued liabilities 822.2 663.8
Income taxes payable 12.0 0.7
Notes payable 28.0 21.4
Current portion of long-term debt 1,065.8 2.2
Total Current Liabilities 2,693.2 1,448.9
Long-term debt 1,959.8 2,232.2
Deferred income taxes 1.4 20.2
Other non-current liabilities 605.8 777.0
Stockholders' Equity 2,303.4 2,025.3
Total Liabilities and
Stockholders' Equity $7,563.6 $6,503.6
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
Six Months Ended June 30,
2008 2007
Operating Activities:
Net income $149.4 $191.5
Adjustments to reconcile net
income to net cash (used in)
provided by operating activities:
Depreciation and amortization 91.0 92.4
Deferred income taxes 29.1 41.7
Non-cash restructuring costs 46.4 6.4
Gain on sale of assets - (0.8)
Stock-based compensation
expense 16.9 18.5
Loss on disposal of
discontinued operations 0.5 16.6
Non-cash income tax benefits - (1.9)
Other 0.8 (2.4)
Changes in operating assets and
liabilities, excluding the effects
of acquisitions:
Accounts receivable (87.7) (79.9)
Inventories (132.8) (102.9)
Accounts payable (8.4) 82.3
Accrued liabilities and other (224.6) (88.7)
Discontinued operations (1.9) -
Net cash (used in) provided by
operating activities $(121.3) $172.8
Investing Activities:
Acquisitions, net of cash acquired $(644.1) $(49.5)
Capital expenditures (78.2) (69.0)
Disposals of non-current assets
and sales of businesses 0.5 (2.8)
Net cash used in investing
activities $(721.8) $(121.3)
Financing Activities:
Proceeds from issuance of debt,
net of debt issuance costs $919.7 $353.4
Payments on notes payable and debt (81.7) (345.0)
Cash dividends (117.4) (117.3)
Proceeds from exercised stock
options and other 0.2 16.6
Net cash provided by (used in)
financing activities $720.8 $(92.3)
Currency rate effect on cash and
cash equivalents $4.5 $2.6
Decrease in cash and cash
equivalents $(117.8) $(38.2)
Cash and cash equivalents at
beginning of period 329.2 201.0
Cash and cash equivalents at end
of period $211.4 $162.8
Newell Rubbermaid Inc. Calculation of Free Cash Flow (1)
Three Months Ended June 30,
Free Cash Flow (in millions): 2008 2007
Net cash provided by operating
activities $1.9 $158.3
Capital expenditures (38.2) (36.4)
Free Cash Flow $(36.3) $121.9
Six Months Ended June 30,
Free Cash Flow (in millions): 2008 2007
Net cash (used in) provided by
operating activities $(121.3) $172.8
Capital expenditures (78.2) (69.0)
Free Cash Flow $(199.5) $103.8
(1) Free Cash Flow is defined as cash flow provided by operating
activities less capital expenditures.
Newell Rubbermaid Inc.
Financial Worksheet
(In Millions)
2008
Excluding Charges Reconciliation (1)
Exclu- Ex Opera-
Reported ded Charges ting
Net Sales OI Charges OI Margin
Q1:
Cleaning, Organization & Decor $464.7 $48.1 $- $48.1 10.4%
Office Products 421.7 34.5 - 34.5 8.2%
Tools & Hardware 290.3 35.1 - 35.1 12.1%
Home & Family 257.0 30.6 - 30.6 11.9%
Restructuring Costs (18.4) 18.4 -
Corporate (18.8) - (18.8)
Total $1,433.7 $111.1 $18.4 $129.5 9.0%
2007
Excluding Charges Reconciliation (1)
Exclu- Ex Opera-
Reported ded Charges ting
Net Sales OI Charges OI Margin
Q1:
Cleaning, Organization & Decor $457.4 $57.2 $- $57.2 12.5%
Office Products 406.3 35.2 - 35.2 8.7%
Tools & Hardware 293.9 34.2 - 34.2 11.6%
Home & Family 226.8 30.4 - 30.4 13.4%
Restructuring Costs (15.5) 15.5 -
Corporate (20.7) - (20.7)
Total $1,384.4 $120.8 $15.5 $136.3 9.8%
Year-over-year changes
Net Sales Operating Income(2)
$ % $ %
Q1:
Cleaning, Organization & Decor $7.3 1.6% $(9.1) (15.9)%
Office Products 15.4 3.8% (0.7) (2.0)%
Tools & Hardware (3.6) (1.2)% 0.9 2.6%
Home & Family 30.2 13.3% 0.2 0.7%
Restructuring Costs - 0.0%
Corporate 1.9 9.2%
Total $49.3 3.6% $(6.8) (5.0)%
2008
Excluding Charges Reconciliation (1)
Exclu- Ex Opera-
Reported ded Charges ting
Net Sales OI Charges OI Margin
Q2:
Cleaning, Organization & Decor $609.9 $74.5 $- $74.5 12.2%
Office Products 612.9 102.6 - 102.6 16.7%
Tools & Hardware 322.3 46.7 - 46.7 14.5%
Home & Family 280.0 27.7 - 27.7 9.9%
Restructuring Costs (69.4) 69.4 -
Corporate (21.2) - (21.2)
Total $1,825.1 $160.9 $69.4 $230.3 12.6%
2007
Excluding Charges Reconciliation (1)
Exclu- Ex Opera-
Reported ded Charges ting
Net Sales OI Charges OI Margin
Q2:
Cleaning, Organization & Decor $544.4 $81.2 $- $81.2 14.9%
Office Products 587.5 109.0 - 109.0 18.6%
Tools & Hardware 324.6 47.7 - 47.7 14.7%
Home & Family 236.6 31.3 - 31.3 13.2%
Restructuring Costs (15.5) 15.5 -
Corporate (20.9) - (20.9)
Total $1,693.1 $232.8 $15.5 $248.3 14.7%
Year-over-year changes
Net Sales Operating Income(2)
$ % $ %
Q2:
Cleaning, Organization & Decor $65.5 12.0% $(6.7) (8.3)%
Office Products 25.4 4.3% (6.4) (5.9)%
Tools & Hardware (2.3) (0.7)% (1.0) (2.1)%
Home & Family 43.4 18.3% (3.6) (11.5)%
Restructuring Costs - 0.0%
Corporate (0.3) (1.4)%
Total $132.0 7.8% $(18.0) (7.2)%
2008
Excluding Charges Reconciliation (1)
Exclu- Ex Opera-
Reported ded Charges ting
Net Sales OI Charges OI Margin
YTD:
Cleaning, Organization & Decor $1,074.6 $122.6 $- $122.6 11.4%
Office Products 1,034.6 137.1 - 137.1 13.3%
Tools & Hardware 612.6 81.8 - 81.8 13.4%
Home & Family 537.0 58.3 - 58.3 10.9%
Restructuring Costs (87.8) 87.8 -
Corporate (40.0) - (40.0)
Total $3,258.8 $272.0 $87.8 $359.8 11.0%
2007
Excluding Charges Reconciliation (1)
Exclu- Ex Opera-
Reported ded Charges ting
Net Sales OI Charges OI Margin
YTD:
Cleaning, Organization & Decor $1,001.8 $138.4 $- $138.4 13.8%
Office Products 993.8 144.2 - 144.2 14.5%
Tools & Hardware 618.5 81.9 - 81.9 13.2%
Home & Family 463.4 61.7 - 61.7 13.3%
Restructuring Costs (31.0) 31.0 -
Corporate (41.6) - (41.6)
Total $3,077.5 $353.6 $31.0 $384.6 12.5%
Year-over-year changes
Operating Income
Net Sales (2)
$ % $ %
YTD:
Cleaning, Organization & Décor $72.8 7.3% $(15.8) (11.4)%
Office Products 40.8 4.1% (7.1) (4.9)%
Tools & Hardware (5.9) (1.0)% (0.1) (0.1)%
Home & Family 73.6 15.9% (3.4) (5.5)%
Restructuring Costs - 0.0%
Corporate 1.6 3.8%
Total $181.3 5.9% $(24.8) (6.4)%
(1) Charges are related to restructuring.
(2) Excluding restructuring charges.
Newell Rubbermaid Inc.
Three Months Ended June 30, 2008
In Millions
Currency Analysis
By Segment 2008 2007
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning, Organization & Decor $609.9 $(7.4) $602.5 $544.4
Office Products 612.9 (25.5) 587.4 587.5
Tools & Hardware 322.3 (10.6) 311.7 324.6
Home & Family 280.0 (4.8) 275.2 236.6
Total Company $1,825.1 $(48.3) $1,776.8 $1,693.1
By Geography
United States $1,247.6 $- $1,247.6 $1,236.3
Canada 116.6 (9.6) 107.0 112.7
North America 1,364.2 (9.6) 1,354.6 1,349.0
Europe 288.8 (29.6) 259.2 221.4
Central & South America 71.4 (4.7) 66.7 68.1
All Other 100.7 (4.4) 96.3 54.6
Total Company $1,825.1 $(48.3) $1,776.8 $1,693.1
By Segment Year-over-year
Increase (Decrease)
Excluding Including Currency
Currency Currency Impact
Cleaning, Organization & Decor 10.7% 12.0% 1.4%
Office Products (0.0)% 4.3% 4.3%
Tools & Hardware (4.0)% (0.7)% 3.3%
Home & Family 16.3% 18.3% 2.0%
Total Company 4.9% 7.8% 2.9%
By Geography
United States 0.9% 0.9% 0.0%
Canada (5.1)% 3.5% 8.5%
North America 0.4% 1.1% 0.7%
Europe 17.1% 30.4% 13.4%
Central & South America (2.1)% 4.8% 6.9%
All Other 76.4% 84.4% 8.1%
Total Company 4.9% 7.8% 2.9%
Newell Rubbermaid Inc.
Six Months Ended June 30, 2008
In Millions
Currency Analysis
By Segment 2008 2007
Sales as Currency Adjusted Sales as
Reported Impact Sales Reported
Cleaning, Organization & Decor $1,074.6 $(16.1) $1,058.5 $1,001.8
Office Products 1,034.6 (46.2) 988.4 993.8
Tools & Hardware 612.6 (22.3) 590.3 618.5
Home & Family 537.0 (9.7) 527.3 463.4
Total Company $3,258.8 $(94.3) $3,164.5 $3,077.5
By Geography
United States $2,246.0 $- $2,246.0 $2,256.2
Canada 205.7 (22.7) 183.0 191.8
North America 2,451.7 (22.7) 2,429.0 2,448.0
Europe 516.4 (52.2) 464.2 413.9
Central & South America 132.6 (9.5) 123.1 116.7
All Other 158.1 (9.9) 148.2 98.9
Total Company $3,258.8 $(94.3) $3,164.5 $3,077.5
By Segment Year-over-year Increase
Excluding Including Currency
Currency Currency Impact
Cleaning, Organization & Decor 5.7% 7.3% 1.6%
Office Products (0.5)% 4.1% 4.6%
Tools & Hardware (4.6)% (1.0)% 3.6%
Home & Family 13.8% 15.9% 2.1%
Total Company 2.8% 5.9% 3.1%
By Geography
United States (0.5)% (0.5)% 0.0%
Canada (4.6)% 7.2% 11.8%
North America (0.8)% 0.2% 0.9%
Europe 12.2% 24.8% 12.6%
Central & South America 5.5% 13.6% 8.1%
All Other 49.8% 59.9% 10.0%
Total Company 2.8% 5.9% 3.1%
DATASOURCE: Newell Rubbermaid Inc.
CONTACT: Nancy O'Donnell, Vice President, Investor Relations, +1-770-
407-3663, or David Doolittle, Vice President, Corporate Communications, +1-
770-407-3613, both of Newell Rubbermaid Inc.
Web site: http://www.newellco.com/
Company News On-Call: http://www.prnewswire.com/comp/138728.html