UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 25, 2007
NEWELL RUBBERMAID INC.
(Exact Name of Registrant as Specified in Its Charter)
| Delaware (State or Other Jurisdiction of Incorporation) |
1-9608 (Commission File Number) |
36-3514169 (IRS Employer Identification No.) |
| 10 B Glenlake Parkway Suite 300 Atlanta, Georgia (Address of Principal Executive Offices) |
30328 (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (770) 407-3800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE OF CONTENTS
Item 2.02. Results of Operations and Financial Condition
Item 7.01. Regulation FD Disclosure
Item 9.01 Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
Item 2.02. Results of Operations and Financial Condition.
The information in this Item 2.02, and the Exhibit attached to this Report, are furnished pursuant
to Item 2.02 of Form 8-K. Consequently, such items are not deemed “filed” for the purposes of
Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that
section. Such items may only be incorporated by reference in another filing under the Exchange Act
or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.
On October 25, 2007, Newell Rubbermaid Inc. (the “Company”) reported its results for the fiscal
quarter ended September 30, 2007. The Company’s press release, dated October 25, 2007, and
Additional Financial Information, is attached as Exhibit 99.1.
The press release and Additional Financial Information contain non-GAAP financial measures. For
purposes of Securities and Exchange Commission Regulation G, a “non-GAAP financial measure” is a
numerical measure of a registrant’s historical or future financial performance, financial position
or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding
amounts, that are included in the most directly comparable measure calculated and presented in
accordance with GAAP in the statement of income, balance sheet or statement of cash flows of the
issuer; or includes amounts, or is subject to adjustments that have the effect of including
amounts, that are excluded from the most directly comparable measure so calculated and presented.
Operating and statistical measures and certain ratios and other statistical measures are not
non-GAAP financial measures. For purposes of the definition, GAAP refers to generally accepted
accounting principles in the United States. Pursuant to the requirements of Regulation G, the
Company has provided, as a part of the press release and Additional Financial Information, a
reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP
financial measure.
The Company has used certain financial measures that are included in the press release and
Additional Financial Information both in presenting 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 measures — including those that are “non-GAAP financial measures” — and the
information they provide are useful to investors since these measures:
| • | enable investors and analysts to compare the current non-GAAP measures with the corresponding non-GAAP measures used in the past, and | ||
| • | permit investors to view the Company’s performance using the same tools that Company management uses to evaluate the Company’s past performance, reportable business segments and prospects for future performance and to gauge the Company’s progress in achieving its stated goals. |
The Company’s management believes that operating income, income from continuing operations and
diluted earnings per share from continuing operations, excluding restructuring charges, are also
useful because they provide investors with a meaningful perspective on the current underlying
performance of the Company’s continuing operations. The Company’s management believes that free
cash flow, defined by the Company as cash generated from operations less capital expenditures, is
useful to investors because it is an indication of amounts of cash flow that may be available for
dividends and further investment in future growth initiatives. Another purpose for which the
Company uses diluted earnings per share from continuing operations, excluding restructuring
charges, is as a performance goal that helps determine the amount, if any, of cash bonuses for
corporate management employees under the Company’s management cash bonus plan. The Company’s
management believes that adjusted sales, as reflected in the Currency Analysis included in Exhibit
99.1, is useful to investors because it demonstrates the effect of foreign currency translation on
reported sales. The Company’s management believes that “Normalized” earnings per share, which
excludes restructuring charges and one-time tax benefits is useful to investors because it permits
investors to better understand year-over-year changes in underlying operating performance.
While the Company believes that these non-GAAP financial measures are useful in evaluating the
Company, 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.
Item 7.01 Regulation FD Disclosure.
The information set forth under Item 2.02 above and in Exhibit 99.1 to this Report is also intended
to be furnished under this Item 7.01 and is hereby incorporated by reference.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
| Exhibit | ||
| Number | Description |
|
99.1
|
Press Release, dated October 25, 2007, issued by Newell Rubbermaid Inc., and Additional Financial Information |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NEWELL RUBBERMAID INC. |
||||
| Date: October 25, 2007 | By: | /s/ Dale L. Matschullat | ||
| Dale L. Matschullat | ||||
| Senior Vice President, General Counsel and Corporate Secretary |
||||
EXHIBIT INDEX
| Exhibit No. | Description |
|
99.1
|
Press Release, dated October 25, 2007, issued by Newell Rubbermaid Inc., and Additional Financial Information |
Exhibit 99.1
|
News Release October 25, 2007 Page 1 of 6 |
|
NEWELL RUBBERMAID REPORTS THIRD QUARTER 2007 RESULTS
| • | Sales growth of 6.4% and gross margin expansion of 190 basis points |
| • | Raises full year EPS & cash flow guidance |
| • | Guides full year gross margin expansion to the high-end of the range |
| • | Successful implementation of SAP at North American Office Products |
ATLANTA, October 25, 2007 – Newell Rubbermaid Inc. (NYSE: NWL) today
reported third quarter 2007 results, reflecting sales growth, gross
margin expansion and improvement in operating income. In addition,
management raised its full year earnings per share and cash flow guidance
and guided full year gross margin expansion to the high-end of the range.
“We are pleased to report that we have delivered another quality quarter,
generating an attractive balance of internal sales growth, gross margin
expansion, EPS growth and cash generation,” said Mark Ketchum, president
and chief executive officer of Newell Rubbermaid. “Our 2007 results
demonstrate that the strategies are working and serve as a validation of
our business model. We remain on track to meet or exceed all performance
commitments established at the beginning of the year.”
Successful Implementation of SAP
During the quarter, the North American Office Products business
successfully implemented SAP. This SAP go-live marks the completion of
the first major milestone aimed at migrating non-standard legacy systems
and users to a common SAP platform. This multi-year program will enable
the Company to integrate and manage its worldwide business and reporting
process more efficiently.
Quarterly Financial Highlights
Net sales for the third quarter ended September 30, 2007 rose 6.4 percent
to $1.69 billion, compared to $1.59 billion in the prior year. This
marks the eighth consecutive quarter of internal sales growth for the
company. Sales growth, excluding foreign currency, was 4.5 percent. The
sales growth was driven by broad based strength across all segments and
benefited by approximately 150 basis points from the timing of sales in
the Office Products segment relating to the third quarter pre-buy in
advance of the SAP implementation and the recovery of lost second quarter
sales associated with service level issues in Europe.
Gross margin for the third quarter 2007 improved to 35.6 percent, a 190
basis point improvement over the prior year, exceeding the high end of
the company’s revised guidance. The expansion was driven primarily by
favorable mix and productivity improvements, including the impact of
Project Acceleration.
Excluding Project Acceleration restructuring costs of $22.7 million in
2007 and $22.1 million in 2006, operating income improved $36.2 million
to $236.5 million, an 18 percent increase over the prior year.
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
David Doolittle
Director, Corporate Communications
Director, Corporate Communications
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
|
|
News Release October 25, 2007 Page 2 of 6 |
|
Income from continuing operations, as reported, was $169.9 million, or
$0.61 per diluted share, for the third quarter 2007, compared to $112.7
million, or $0.41 per diluted share, in the prior year.
Excluding Project Acceleration restructuring costs, income from
continuing operations was $185.0 million, or $0.66 per diluted share, for
the third quarter 2007, compared to the prior year’s result of $128.4
million, or $0.46 per diluted share. Income from continuing operations
in the third quarter 2007 included a one-time tax benefit of $39.4
million, or $0.14 per diluted share, versus $0.05 per diluted share in
the prior year. A reconciliation of the results “as reported” to results
“excluding charges” is attached to this press release.
Normalized earnings, which exclude Project Acceleration restructuring
costs and one-time tax items, were $0.52 per diluted share in the third
quarter 2007, a 27 percent increase over the prior year’s result of $0.41
per diluted share.
Net cash provided by operating activities was $283.4 million in the third
quarter 2007, compared to $312.2 million in the prior year. Capital
expenditures were $41.0 million, versus $36.9 million in the prior year.
The company returned $58.7 million to shareholders through cash dividends
in the quarter, bringing the year-to-date total up to $176.0 million.
A reconciliation of the third quarter 2007 and last year’s results is as
follows:
| Q3 2007 | Q3 2006 | |||||||
Diluted earnings per share from
continuing operations (as reported): |
$ | 0.61 | $ | 0.41 | ||||
Project Acceleration restructuring costs |
$ | 0.05 | $ | 0.05 | ||||
Diluted earnings per share from
continuing operations (excluding charges): |
$ | 0.66 | $ | 0.46 | ||||
Tax benefits |
($0.14 | ) | ($0.05 | ) | ||||
“Normalized” EPS: |
$ | 0.52 | $ | 0.41 | ||||
Year-to-Date Financial Highlights
Net sales for the nine months ended September 30, 2007 grew 4.4 percent
to $4.76 billion, compared to $4.56 billion in the prior year. Sales
growth, excluding foreign currency, was 2.8 percent. The sales growth
was driven by strength across all segments, led by market share gains in
the Home & Family and Rubbermaid Commercial businesses and global growth
in the Irwin and Lenox branded tools businesses.
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
David Doolittle
Director, Corporate Communications
Director, Corporate Communications
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
|
|
News Release October 25, 2007 Page 3 of 6 |
|
Gross margin was 35.3 percent, a 180 basis point improvement over the prior year. The expansion
reflects core sales growth, strong productivity, including savings from Project Acceleration, and
favorable mix.
Excluding Project Acceleration restructuring costs of $53.7 million in
2007 and $50.3 million in 2006, operating income improved $81.1 million
to $621.1 million, a 15 percent increase over the prior year.
Income from continuing operations, as reported, was $378.2 million, or $1.36 per diluted share,
compared to $378.4 million, or $1.37 per diluted share, in the prior year.
Excluding Project Acceleration restructuring costs, income from
continuing operations was $417.6 million, or $1.50 per diluted share,
compared to the prior year’s result of $414.7 million, or $1.50 per
diluted share. Income from continuing operations in 2007 included
one-time tax benefits of $41.3 million, or $0.15 per diluted share,
versus $0.41 per diluted share in the prior year. A reconciliation of
the results “as reported” to results “excluding charges” is attached to
this press release.
Normalized earnings, which exclude Project Acceleration restructuring
costs and one-time tax items, were $1.35 per diluted share, a 24 percent
increase over the prior year’s result of $1.09 per diluted share.
Net cash provided by operating activities was $456.2 million, compared to
$404.3 million for the prior year. Capital expenditures were $110.0
million, compared to $94.1 million for the prior year.
A reconciliation of the first nine months 2007 and last year’s
results is as follows:
| Q3 YTD 2007 | Q3 YTD 2006 | |||||||
Diluted earnings per share from
continuing operations (as reported): |
$ | 1.36 | $ | 1.37 | ||||
Project Acceleration restructuring costs |
$ | 0.14 | $ | 0.13 | ||||
Diluted earnings per share from
continuing operations (excluding charges): |
$ | 1.50 | $ | 1.50 | ||||
Tax benefits |
($0.15 | ) | ($0.41 | ) | ||||
“Normalized” EPS: |
$ | 1.35 | $ | 1.09 | ||||
2007 Full Year Guidance
The company continues to expect sales growth of approximately 4 percent
with growth in all four business segments, including approximately 150
basis points of favorable currency.
The company now projects gross margin expansion of 175 to 200 basis
points. Project
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
David Doolittle
Director, Corporate Communications
Director, Corporate Communications
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
|
|
News Release October 25, 2007 Page 4 of 6 |
|
Acceleration savings and ongoing productivity initiatives, combined with
favorable mix, will drive the gross margin expansion.
Normalized earnings are expected to range from $1.79 to $1.81 per diluted
share.
Net cash provided by operating activities is now forecast between $650
and $700 million, including approximately $50 to $60 million in cash
restructuring payments. The company continues to project annualized
savings in excess of $150 million from Project Acceleration upon
completion in 2009, now including $60 million of savings in 2007. The
company now expects capital expenditures of $145 to $155 million,
including SAP, and dividends of approximately $235 million.
Fourth Quarter Guidance
The company believes sales will increase approximately 2 percent. Sales
in the quarter will be negatively impacted by approximately 100 basis
points as certain retailers purchased product in advance of the SAP
go-live at North American Office Products.
Savings from Project Acceleration activities along with other ongoing
productivity initiatives and favorable mix will drive expected gross
margin expansion of between 175 and 225 basis points.
Normalized earnings are expected to range from $0.44 to $0.46 per diluted
share.
Net cash provided by operating activities is forecast in the range of
$200 to $250 million. The company expects capital expenditures of $35 to
$45 million.
2008 Outlook
The company expects sales growth of 3 to 5 percent for the full year with
growth expected across all business segments. New products and increased
strategic SG&A spending are expected to more than offset the impact of a
continued sluggish economic environment in North America. Project
Acceleration, and other productivity initiatives, are expected to fuel
gross margin expansion in excess of 100 basis points. Approximately half
of this expansion will be invested in strategic brand building and
corporate initiatives. Sales growth and gross margin expansion will
drive normalized EPS to a range of $1.95 to $2.00.
“2008 continues to build upon the positive momentum experienced in 2007,”
said Mark Ketchum, president and chief executive officer of Newell
Rubbermaid. “We continue to make the necessary investments in consumer
understanding, innovation and demand creation activities aimed at
positioning Newell Rubbermaid for long-term success. We are proud of the
progress we’ve made thus far and excited about the improvements that are
yet to come.”
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
David Doolittle
Director, Corporate Communications
Director, Corporate Communications
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
|
|
News Release October 25, 2007 Page 5 of 6 |
|
A reconciliation of the 2007 and 2008 earnings outlook is as follows:
| Q4 2007 | FY 2007 | FY 2008 | ||||||||||
Diluted earnings per share from
continuing operations (as reported): |
$ | 0.35-$0.37 | $ | 1.69-$1.71 | $ | 1.53-$1.58 | ||||||
Project Acceleration restructuring costs |
$ | 0.06-$0.12 | $ | 0.22-$0.28 | $ | 0.38-$0.47 | ||||||
Diluted earnings per share from
continuing operations (excluding charges): |
$ | 0.44-$0.46 | $ | 1.94-$1.96 | $ | 1.95-$2.00 | ||||||
Tax benefits |
$ | 0.00 | ($0.15 | ) | $ | 0.00 | ||||||
“Normalized” EPS: |
$ | 0.44-$0.46 | $ | 1.79-$1.81 | $ | 1.95-$2.00 | ||||||
Conference Call
The company’s third quarter 2007 earnings conference call is scheduled
for today, October 25, 2007, 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
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, capital and other expenditures, cash flow,
dividends, restructuring costs, costs and cost savings, debt ratings, and
management’s plans, projections and objectives for future operations and
performance. These statements are accompanied by words such as “expect,”
“project,” “will,” “believes,” “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; 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; 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 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
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
David Doolittle
Director, Corporate Communications
Director, Corporate Communications
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
|
|
News Release October 25, 2007 Page 5 of 6 |
|
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 that touch the lives of people where
they work, live and play. The company’s strong portfolio of brands
includes Sharpie®, Paper Mate®, DYMO®,
EXPO®, Waterman®, Parker®,
Rolodex®, IRWIN®, LENOX®,
BernzOmatic®, Rubbermaid®, Levolor®,
Graco®, Calphalon® and Goody®. The
company, with sales of approximately $6 billion, is headquartered in
Atlanta, Ga., and employs approximately 22,500 employees worldwide.
This press release and additional information about the company are
available on the company’s Web site www.newellrubbermaid.com.
NWL-EA
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Ron Hardnock
Vice President, Investor Relations
Vice President, Investor Relations
David Doolittle
Director, Corporate Communications
Director, Corporate Communications
10B Glenlake Parkway
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Suite 300
Atlanta, GA 30328
Phone: +1 (770) 407-3994
Fax: +1 (770) 407-3983
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Reconciliation of Results “As Reported” to Results “Excluding Charges”
| Three Months Ended September 30, | ||||||||||||||||||||||||||||
| 2007 | 2006 | YOY | ||||||||||||||||||||||||||
| As Reported | Charges (1) | Excl. Charges | As Reported | Charges (2) | Excl. Charges | % Change | ||||||||||||||||||||||
Net sales |
$ | 1,687.3 | $ | — | $ | 1,687.3 | $ | 1,586.1 | $ | — | $ | 1,586.1 | 6.4 | % | ||||||||||||||
Cost of products sold |
1,086.3 | — | 1,086.3 | 1,050.9 | — | 1,050.9 | ||||||||||||||||||||||
GROSS MARGIN |
601.0 | — | 601.0 | 535.2 | — | 535.2 | 12.3 | % | ||||||||||||||||||||
% of sales |
35.6 | % | 35.6 | % | 33.7 | % | 33.7 | % | ||||||||||||||||||||
Selling, general &
administrative expenses |
364.5 | — | 364.5 | 334.9 | — | 334.9 | 8.8 | % | ||||||||||||||||||||
% of sales |
21.6 | % | 21.6 | % | 21.1 | % | 21.1 | % | ||||||||||||||||||||
Restructuring costs |
22.7 | (22.7 | ) | — | 22.1 | (22.1 | ) | — | ||||||||||||||||||||
OPERATING INCOME |
213.8 | 22.7 | 236.5 | 178.2 | 22.1 | 200.3 | 18.1 | % | ||||||||||||||||||||
% of sales |
12.7 | % | 14.0 | % | 11.2 | % | 12.6 | % | ||||||||||||||||||||
Nonoperating expenses: |
||||||||||||||||||||||||||||
Interest expense, net |
28.0 | — | 28.0 | 32.9 | — | 32.9 | ||||||||||||||||||||||
Other expense |
2.1 | — | 2.1 | 3.4 | — | 3.4 | ||||||||||||||||||||||
| 30.1 | — | 30.1 | 36.3 | — | 36.3 | (17.1 | )% | |||||||||||||||||||||
INCOME BEFORE INCOME TAXES |
183.7 | 22.7 | 206.4 | 141.9 | 22.1 | 164.0 | 25.9 | % | ||||||||||||||||||||
% of sales |
10.9 | % | 12.2 | % | 8.9 | % | 10.3 | % | ||||||||||||||||||||
Income taxes |
13.8 | 7.6 | 21.4 | 29.2 | 6.4 | 35.6 | (39.9 | )% | ||||||||||||||||||||
Effective rate |
7.5 | % | 10.4 | % | 20.6 | % | 21.7 | % | ||||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS |
169.9 | 15.1 | 185.0 | 112.7 | 15.7 | 128.4 | 44.1 | % | ||||||||||||||||||||
% of sales |
10.1 | % | 11.0 | % | 7.1 | % | 8.1 | % | ||||||||||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||||||||||
Net gain/(loss) |
0.3 | (0.3 | ) | — | (4.2 | ) | 4.2 | — | ||||||||||||||||||||
NET INCOME |
$ | 170.2 | $ | 14.8 | $ | 185.0 | $ | 108.5 | $ | 19.9 | $ | 128.4 | 44.1 | % | ||||||||||||||
% of sales |
10.1 | % | 11.0 | % | 6.8 | % | 8.1 | % | ||||||||||||||||||||
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | 0.62 | $ | 0.05 | $ | 0.67 | $ | 0.41 | $ | 0.06 | $ | 0.47 | ||||||||||||||||
Diluted |
$ | 0.61 | $ | 0.05 | $ | 0.66 | $ | 0.41 | $ | 0.06 | $ | 0.46 | ||||||||||||||||
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | 0.00 | $ | (0.00 | ) | $ | — | $ | (0.02 | ) | $ | 0.02 | $ | — | ||||||||||||||
Diluted |
$ | 0.00 | $ | (0.00 | ) | $ | — | $ | (0.02 | ) | $ | 0.02 | $ | — | ||||||||||||||
EARNINGS PER SHARE: |
||||||||||||||||||||||||||||
Basic |
$ | 0.62 | $ | 0.05 | $ | 0.67 | $ | 0.39 | $ | 0.07 | $ | 0.47 | ||||||||||||||||
Diluted |
$ | 0.61 | $ | 0.05 | $ | 0.66 | $ | 0.39 | $ | 0.07 | $ | 0.46 | ||||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||
Basic |
276.0 | 276.0 | 274.6 | 274.6 | ||||||||||||||||||||||||
Diluted |
286.1 | 286.1 | 275.6 | 283.9 | ||||||||||||||||||||||||
| (1) | Charges excluded from “as reported” results for 2007 consist of $22.7 million of Project Acceleration restructuring costs and a $0.3 million net gain related to discontinued operations. | |
| (2) | Charges excluded from “as reported” results for 2006 consist of $22.1 million of Project Acceleration restructuring costs and a $4.2 million net loss related to discontinued operations. |
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
Reconciliation of Results “As Reported” to Results “Excluding Charges”
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| 2007 | 2006 | YOY | ||||||||||||||||||||||||||
| As Reported | Charges (1) | Excl. Charges | As Reported | Charges (2) | Excl. Charges | % Change | ||||||||||||||||||||||
Net sales |
$ | 4,764.8 | $ | — | $ | 4,764.8 | $ | 4,562.8 | $ | — | $ | 4,562.8 | 4.4 | % | ||||||||||||||
Cost of products sold |
3,083.5 | — | 3,083.5 | 3,032.5 | — | 3,032.5 | ||||||||||||||||||||||
GROSS MARGIN |
1,681.3 | — | 1,681.3 | 1,530.3 | — | 1,530.3 | 9.9 | % | ||||||||||||||||||||
% of sales |
35.3 | % | 35.3 | % | 33.5 | % | 33.5 | % | ||||||||||||||||||||
Selling, general &
administrative expenses |
1,060.2 | — | 1,060.2 | 990.3 | — | 990.3 | 7.1 | % | ||||||||||||||||||||
% of sales |
22.3 | % | 22.3 | % | 21.7 | % | 21.7 | % | ||||||||||||||||||||
Restructuring costs |
53.7 | (53.7 | ) | — | 50.3 | (50.3 | ) | — | ||||||||||||||||||||
OPERATING INCOME |
567.4 | 53.7 | 621.1 | 489.7 | 50.3 | 540.0 | 15.0 | % | ||||||||||||||||||||
% of sales |
11.9 | % | 13.0 | % | 10.7 | % | 11.8 | % | ||||||||||||||||||||
Nonoperating expenses: |
||||||||||||||||||||||||||||
Interest expense, net |
82.9 | — | 82.9 | 102.2 | — | 102.2 | ||||||||||||||||||||||
Other expense |
4.4 | — | 4.4 | 7.7 | — | 7.7 | ||||||||||||||||||||||
| 87.3 | — | 87.3 | 109.9 | — | 109.9 | (20.6 | )% | |||||||||||||||||||||
INCOME BEFORE INCOME TAXES |
480.1 | 53.7 | 533.8 | 379.8 | 50.3 | 430.1 | 24.1 | % | ||||||||||||||||||||
% of sales |
10.1 | % | 11.2 | % | 8.3 | % | 9.4 | % | ||||||||||||||||||||
Income taxes |
101.9 | 14.3 | 116.2 | 1.4 | 14.0 | 15.4 | 653.1 | % | ||||||||||||||||||||
Effective rate |
21.2 | % | 21.8 | % | 0.4 | % | 3.6 | % | ||||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS |
378.2 | 39.4 | 417.6 | 378.4 | 36.3 | 414.7 | 0.7 | % | ||||||||||||||||||||
% of sales |
7.9 | % | 8.8 | % | 8.3 | % | 9.1 | % | ||||||||||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||||||||||
Net loss |
(16.5 | ) | 16.5 | — | (95.6 | ) | 95.6 | — | ||||||||||||||||||||
NET INCOME |
$ | 361.7 | $ | 55.9 | $ | 417.6 | $ | 282.8 | $ | 131.9 | $ | 414.7 | 0.7 | % | ||||||||||||||
% of sales |
7.6 | % | 8.8 | % | 6.2 | % | 9.1 | % | ||||||||||||||||||||
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | 1.37 | $ | 0.14 | $ | 1.51 | $ | 1.38 | $ | 0.13 | $ | 1.51 | ||||||||||||||||
Diluted |
$ | 1.36 | $ | 0.14 | $ | 1.50 | $ | 1.37 | $ | 0.13 | $ | 1.50 | ||||||||||||||||
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | (0.06 | ) | $ | 0.06 | $ | — | $ | (0.35 | ) | $ | 0.35 | $ | — | ||||||||||||||
Diluted |
$ | (0.06 | ) | $ | 0.06 | $ | — | $ | (0.34 | ) | $ | 0.34 | $ | — | ||||||||||||||
EARNINGS PER SHARE: |
||||||||||||||||||||||||||||
Basic |
$ | 1.31 | $ | 0.20 | $ | 1.51 | $ | 1.03 | $ | 0.48 | $ | 1.51 | ||||||||||||||||
Diluted |
$ | 1.30 | $ | 0.20 | $ | 1.50 | $ | 1.03 | $ | 0.47 | $ | 1.50 | ||||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||
Basic |
276.0 | 276.0 | 274.6 | 274.6 | ||||||||||||||||||||||||
Diluted |
286.1 | 286.1 | 283.6 | 283.6 | ||||||||||||||||||||||||
| (1) | Charges excluded from “as reported” results for 2007 consist of $53.7 million of Project Acceleration restructuring costs and a $16.5 million net loss related to discontinued operations. | |
| (2) | Charges excluded from “as reported” results for 2006 consist of $50.3 million of Project Acceleration restructuring costs and a $95.6 million net loss related to discontinued operations. |
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
| September 30, | September 30, | |||||||
| 2007 | 2006 | |||||||
Assets: |
||||||||
Cash and cash equivalents |
$ | 169.5 | $ | 137.4 | ||||
Accounts receivable, net |
1,127.1 | 1,079.5 | ||||||
Inventories, net |
1,000.1 | 946.0 | ||||||
Deferred income taxes |
104.2 | 117.4 | ||||||
Prepaid expenses and other |
169.1 | 136.2 | ||||||
Current assets of discontinued operations |
— | 287.7 | ||||||
Total Current Assets |
2,570.0 | 2,704.2 | ||||||
Property, plant and equipment, net |
697.4 | 763.6 | ||||||
Goodwill |
2,585.8 | 2,412.1 | ||||||
Other intangible assets, net |
499.4 | 437.9 | ||||||
Other assets |
238.4 | 195.3 | ||||||
Total Assets |
$ | 6,591.0 | $ | 6,513.1 | ||||
Liabilities and Stockholders’ Equity: |
||||||||
Accounts payable |
$ | 619.2 | $ | 605.4 | ||||
Accrued compensation |
157.6 | 155.0 | ||||||
Other accrued liabilities |
724.7 | 661.0 | ||||||
Income taxes payable |
2.1 | 68.9 | ||||||
Notes payable |
20.5 | 21.5 | ||||||
Current portion of long-term debt |
775.2 | 405.9 | ||||||
Current liabilities of discontinued operations |
— | 129.8 | ||||||
Total Current Liabilities |
2,299.3 | 2,047.5 | ||||||
Long-term debt |
1,331.8 | 2,028.8 | ||||||
Other non-current liabilities |
796.3 | 614.7 | ||||||
Stockholders’ Equity |
2,163.6 | 1,822.1 | ||||||
Total Liabilities and Stockholders’ Equity |
$ | 6,591.0 | $ | 6,513.1 | ||||
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
| For The Nine Months Ended September 30, | ||||||||
| 2007 | 2006 | |||||||
Operating Activities: |
||||||||
Net income |
$ | 361.7 | $ | 282.8 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||
Depreciation and amortization |
134.4 | 147.1 | ||||||
Deferred income taxes |
64.4 | 18.1 | ||||||
Impairment charges |
— | 50.9 | ||||||
Non-cash restructuring costs |
10.1 | 32.5 | ||||||
Gain on sale of assets |
(0.8 | ) | (5.1 | ) | ||||
Stock-based compensation expense |
27.9 | 24.7 | ||||||
Loss on disposal of discontinued operations |
16.3 | 11.9 | ||||||
Non-cash income tax benefits |
(41.3 | ) | (115.8 | ) | ||||
Other |
(2.9 | ) | (10.0 | ) | ||||
Changes in current accounts, excluding
the effects of acquisitions: |
||||||||
Accounts receivable |
23.9 | 48.7 | ||||||
Inventories |
(119.1 | ) | (135.8 | ) | ||||
Accounts payable |
59.0 | 7.5 | ||||||
Accrued liabilities and other |
(77.4 | ) | 31.6 | |||||
Discontinued operations |
— | 15.2 | ||||||
Net cash provided by operating activities |
$ | 456.2 | $ | 404.3 | ||||
Investing Activities: |
||||||||
Acquisitions, net of cash acquired |
$ | (101.5 | ) | $ | (42.4 | ) | ||
Capital expenditures |
(110.0 | ) | (94.1 | ) | ||||
Disposals of non-current assets and sale of businesses |
(3.1 | ) | 48.3 | |||||
Net cash used in investing activities |
$ | (214.6 | ) | $ | (88.2 | ) | ||
Financing Activities: |
||||||||
Proceeds from issuance of debt |
$ | 354.9 | $ | 170.3 | ||||
Payments on notes payable and long-term debt |
(474.3 | ) | (300.6 | ) | ||||
Cash dividends |
(176.0 | ) | (174.6 | ) | ||||
Proceeds from exercised stock options and other |
18.0 | 8.9 | ||||||
Net cash used in financing activities |
$ | (277.4 | ) | $ | (296.0 | ) | ||
Currency rate effect on cash and cash equivalents |
$ | 4.3 | $ | 1.8 | ||||
(Decrease)/Increase in cash and cash equivalents |
$ | (31.5 | ) | $ | 21.9 | |||
Cash and cash equivalents at beginning of year |
201.0 | 115.5 | ||||||
Cash and cash equivalents at end of period |
$ | 169.5 | $ | 137.4 | ||||
Newell Rubbermaid Inc.
Calculation of Free Cash Flow (1)
Calculation of Free Cash Flow (1)
| For The Three Months Ended September 30, | ||||||||
| 2007 | 2006 | |||||||
Free Cash Flow (in millions): |
||||||||
Net cash provided by
operating activities |
$ | 283.4 | $ | 312.2 | ||||
Capital expenditures |
(41.0 | ) | (36.9 | ) | ||||
Free Cash Flow |
$ | 242.4 | $ | 275.3 | ||||
| For The Nine Months Ended September 30, | ||||||||
| 2007 | 2006 | |||||||
Free Cash Flow (in millions): |
||||||||
Net cash provided by
operating activities |
$ | 456.2 | $ | 404.3 | ||||
Capital expenditures |
(110.0 | ) | (94.1 | ) | ||||
Free Cash Flow |
$ | 346.2 | $ | 310.2 | ||||
| (1) | Free Cash Flow is defined as cash flow provided by operating activities less capital expenditures. |
Newell Rubbermaid Inc.
Financial Worksheet
In Millions
Financial Worksheet
In Millions
| 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Q1: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor |
$ | 457.4 | $ | 57.2 | $ | — | $ | 57.2 | 12.5 | % | $ | 449.7 | $ | 38.4 | $ | — | $ | 38.4 | 8.5 | % | $ | 7.7 | 1.7 | % | $ | 18.8 | 49.0 | % | ||||||||||||||||||||||||||||
Office Products |
406.3 | 35.2 | — | 35.2 | 8.7 | % | 390.8 | 32.3 | — | 32.3 | 8.3 | % | 15.5 | 4.0 | % | 2.9 | 9.0 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
293.9 | 34.2 | — | 34.2 | 11.6 | % | 276.8 | 33.1 | — | 33.1 | 12.0 | % | 17.1 | 6.2 | % | 1.1 | 3.3 | % | ||||||||||||||||||||||||||||||||||||||
Home & Family |
226.8 | 30.4 | — | 30.4 | 13.4 | % | 225.3 | 32.7 | — | 32.7 | 14.5 | % | 1.5 | 0.7 | % | (2.3 | ) | (7.0 | )% | |||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(15.5 | ) | 15.5 | — | (9.1 | ) | 9.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(20.7 | ) | — | (20.7 | ) | (17.6 | ) | — | (17.6 | ) | (3.1 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,384.4 | $ | 120.8 | $ | 15.5 | $ | 136.3 | 9.8 | % | $ | 1,342.6 | $ | 109.8 | $ | 9.1 | $ | 118.9 | 8.9 | % | $ | 41.8 | 3.1 | % | $ | 17.4 | 14.6 | % | ||||||||||||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Q2: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor |
$ | 544.4 | $ | 81.2 | $ | — | $ | 81.2 | 14.9 | % | $ | 509.9 | $ | 57.3 | $ | — | $ | 57.3 | 11.2 | % | $ | 34.5 | 6.8 | % | $ | 23.9 | 41.7 | % | ||||||||||||||||||||||||||||
Office Products |
587.5 | 109.0 | — | 109.0 | 18.6 | % | 579.1 | 99.9 | — | 99.9 | 17.3 | % | 8.4 | 1.5 | % | 9.1 | 9.1 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
324.6 | 47.7 | — | 47.7 | 14.7 | % | 328.8 | 53.8 | — | 53.8 | 16.4 | % | (4.2 | ) | (1.3 | )% | (6.1 | ) | (11.3 | )% | ||||||||||||||||||||||||||||||||||||
Home & Family |
236.6 | 31.3 | — | 31.3 | 13.2 | % | 216.3 | 29.8 | — | 29.8 | 13.8 | % | 20.3 | 9.4 | % | 1.5 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(15.5 | ) | 15.5 | — | (19.1 | ) | 19.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(20.9 | ) | — | (20.9 | ) | (20.0 | ) | — | (20.0 | ) | (0.9 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,693.1 | $ | 232.8 | $ | 15.5 | $ | 248.3 | 14.7 | % | $ | 1,634.1 | $ | 201.7 | $ | 19.1 | $ | 220.8 | 13.5 | % | $ | 59.0 | 3.6 | % | $ | 27.5 | 12.5 | % | ||||||||||||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
Q3: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor |
$ | 547.2 | $ | 83.7 | $ | — | $ | 83.7 | 15.3 | % | $ | 519.3 | $ | 67.8 | $ | — | $ | 67.8 | 13.1 | % | $ | 28.0 | 5.4 | % | $ | 15.9 | 23.5 | % | ||||||||||||||||||||||||||||
Office Products |
544.9 | 84.2 | — | 84.2 | 15.5 | % | 517.5 | 75.7 | — | 75.7 | 14.6 | % | 27.4 | 5.3 | % | 8.5 | 11.2 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
335.9 | 51.3 | — | 51.3 | 15.3 | % | 324.4 | 46.2 | — | 46.2 | 14.2 | % | 11.5 | 3.5 | % | 5.1 | 11.0 | % | ||||||||||||||||||||||||||||||||||||||
Home & Family |
259.3 | 37.2 | — | 37.2 | 14.3 | % | 224.9 | 28.9 | — | 28.9 | 12.9 | % | 34.4 | 15.3 | % | 8.3 | 28.7 | % | ||||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(22.7 | ) | 22.7 | — | (22.1 | ) | 22.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(19.9 | ) | — | (19.9 | ) | (18.3 | ) | — | (18.3 | ) | (1.6 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,687.3 | $ | 213.8 | $ | 22.7 | $ | 236.5 | 14.0 | % | $ | 1,586.1 | $ | 178.2 | $ | 22.1 | $ | 200.3 | 12.6 | % | $ | 101.3 | 6.4 | % | $ | 36.2 | 18.1 | % | ||||||||||||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Excluding Charges Reconciliation (1) | Excluding Charges Reconciliation (1) | Year-over-year changes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Excluded | Ex Charges | Operating | Reported | Excluded | Ex Charges | Operating | Net Sales | Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | OI | Charges | OI | Margin | Net Sales | OI | Charges | OI | Margin | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||
YTD: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning, Organization & Décor |
$ | 1,549.0 | $ | 222.1 | $ | — | $ | 222.1 | 14.3 | % | $ | 1,478.9 | $ | 163.5 | $ | — | $ | 163.5 | 11.1 | % | $ | 70.2 | 4.7 | % | $ | 58.6 | 35.8 | % | ||||||||||||||||||||||||||||
Office Products |
1,538.7 | 228.4 | — | 228.4 | 14.8 | % | 1,487.4 | 207.9 | — | 207.9 | 14.0 | % | 51.3 | 3.4 | % | 20.5 | 9.9 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
954.4 | 133.2 | — | 133.2 | 14.0 | % | 930.0 | 133.1 | — | 133.1 | 14.3 | % | 24.4 | 2.6 | % | 0.1 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
Home & Family |
722.7 | 98.9 | — | 98.9 | 13.7 | % | 666.5 | 91.4 | — | 91.4 | 13.7 | % | 56.2 | 8.4 | % | 7.5 | 8.2 | % | ||||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(53.7 | ) | 53.7 | — | (50.3 | ) | 50.3 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(61.5 | ) | — | (61.5 | ) | (55.9 | ) | — | (55.9 | ) | (5.6 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 4,764.8 | $ | 567.4 | $ | 53.7 | $ | 621.1 | 13.0 | % | $ | 4,562.8 | $ | 489.7 | $ | 50.3 | $ | 540.0 | 11.8 | % | $ | 202.1 | 4.4 | % | $ | 81.1 | 15.0 | % | ||||||||||||||||||||||||||||
| (1) | Charges are related to restructuring. |
Newell Rubbermaid Inc.
Three Months Ended September 30, 2007
In Millions
Three Months Ended September 30, 2007
In Millions
Currency Analysis
| 2007 | 2006 | Year-over-year Increase (Decrease) | ||||||||||||||||||||||||||
| Sales as | Currency | Adjusted | Sales as | Excluding | Including | Currency | ||||||||||||||||||||||
| Reported | Impact | Sales | Reported | Currency | Currency | Impact | ||||||||||||||||||||||
By Segment |
||||||||||||||||||||||||||||
Cleaning, Organization & Décor |
$ | 547.2 | $ | (4.7 | ) | $ | 542.5 | $ | 519.3 | 4.5 | % | 5.4 | % | 0.9 | % | |||||||||||||
Office Products |
544.9 | (14.8 | ) | 530.1 | 517.5 | 2.4 | % | 5.3 | % | 2.9 | % | |||||||||||||||||
Tools & Hardware |
335.9 | (7.9 | ) | 328.0 | 324.4 | 1.1 | % | 3.5 | % | 2.4 | % | |||||||||||||||||
Home & Family |
259.3 | (3.0 | ) | 256.3 | 224.9 | 14.0 | % | 15.3 | % | 1.3 | % | |||||||||||||||||
Total Company |
$ | 1,687.3 | $ | (30.4 | ) | $ | 1,656.9 | $ | 1,586.1 | 4.5 | % | 6.4 | % | 1.9 | % | |||||||||||||
By Geography |
||||||||||||||||||||||||||||
United States |
$ | 1,224.3 | $ | — | $ | 1,224.3 | $ | 1,183.4 | 3.5 | % | 3.5 | % | 0.0 | % | ||||||||||||||
Canada |
116.4 | (6.9 | ) | 109.5 | 104.0 | 5.3 | % | 11.9 | % | 6.6 | % | |||||||||||||||||
North America |
1,340.7 | (6.9 | ) | 1,333.8 | 1,287.4 | 3.6 | % | 4.1 | % | 0.5 | % | |||||||||||||||||
Europe |
221.2 | (16.2 | ) | 205.0 | 188.0 | 9.0 | % | 17.7 | % | 8.6 | % | |||||||||||||||||
Central & South America |
66.7 | (3.1 | ) | 63.6 | 64.1 | (0.8 | )% | 4.1 | % | 4.8 | % | |||||||||||||||||
All Other |
58.7 | (4.2 | ) | 54.5 | 46.6 | 17.0 | % | 26.0 | % | 9.0 | % | |||||||||||||||||
Total Company |
$ | 1,687.3 | $ | (30.4 | ) | $ | 1,656.9 | $ | 1,586.1 | 4.5 | % | 6.4 | % | 1.9 | % | |||||||||||||
Newell Rubbermaid Inc.
Nine Months Ended September 30, 2007
In Millions
Nine Months Ended September 30, 2007
In Millions
Currency Analysis
| 2007 | 2006 | Year-over-year Increase | ||||||||||||||||||||||||||
| Sales as | Currency | Adjusted | Sales as | Excluding | Including | Currency | ||||||||||||||||||||||
| Reported | Impact | Sales | Reported | Currency | Currency | Impact | ||||||||||||||||||||||
By Segment |
||||||||||||||||||||||||||||
Cleaning, Organization & Décor |
$ | 1,549.0 | $ | (7.5 | ) | $ | 1,541.5 | $ | 1,478.9 | 4.2 | % | 4.7 | % | 0.5 | % | |||||||||||||
Office Products |
1,538.7 | (37.1 | ) | 1,501.6 | 1,487.4 | 1.0 | % | 3.4 | % | 2.5 | % | |||||||||||||||||
Tools & Hardware |
954.4 | (19.2 | ) | 935.2 | 930.0 | 0.6 | % | 2.6 | % | 2.1 | % | |||||||||||||||||
Home & Family |
722.7 | (9.1 | ) | 713.6 | 666.5 | 7.1 | % | 8.4 | % | 1.4 | % | |||||||||||||||||
Total Company |
$ | 4,764.8 | $ | (72.9 | ) | $ | 4,691.9 | $ | 4,562.8 | 2.8 | % | 4.4 | % | 1.6 | % | |||||||||||||
By Geography |
||||||||||||||||||||||||||||
United States |
$ | 3,480.5 | $ | — | $ | 3,480.5 | $ | 3,415.1 | 1.9 | % | 1.9 | % | 0.0 | % | ||||||||||||||
Canada |
308.2 | (8.0 | ) | 300.2 | 287.4 | 4.5 | % | 7.2 | % | 2.8 | % | |||||||||||||||||
North America |
3,788.7 | (8.0 | ) | 3,780.7 | 3,702.5 | 2.1 | % | 2.3 | % | 0.2 | % | |||||||||||||||||
Europe |
635.1 | (50.3 | ) | 584.8 | 557.6 | 4.9 | % | 13.9 | % | 9.0 | % | |||||||||||||||||
Central & South America |
183.4 | (5.4 | ) | 178.0 | 170.7 | 4.3 | % | 7.4 | % | 3.2 | % | |||||||||||||||||
All Other |
157.6 | (9.2 | ) | 148.4 | 132.0 | 12.4 | % | 19.4 | % | 7.0 | % | |||||||||||||||||
Total Company |
$ | 4,764.8 | $ | (72.9 | ) | $ | 4,691.9 | $ | 4,562.8 | 2.8 | % | 4.4 | % | 1.6 | % | |||||||||||||
| Q3 2007 Earnings Call Presentation October 25, 2007 |
| Forward-Looking Statements The statements in this presentation 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, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "expect," "project," "will," "believes," "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; 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; the risks inherent in our foreign operations and those factors listed in the company's second quarter 2007 Form 10-Q, including Exhibit 99.1 thereto, filed with the Securities and Exchange Commission. |
| Successful SAP Conversion - "Sharpie Runs SAP" Project Acceleration $60 million in savings for each of 2007 and 2008 Total program savings and expenses remain on track Launched new Global Business Unit Structure (GBU) One, common global organizational structure Leverage our brands, our technology, our supply chain, our consumer/competitor understanding and our people on a global basis Continued growth trifecta is reaffirmation that the business model is working 2006 trend of Sales Growth, GM expansion, and EPS growth will continue in 2007 and 2008 2007 Transformation Progress |
| "Sharpie Runs SAP" CEO Mark Ketchum commented: "We are pleased to report that the launch has gone extremely well. This go-live marks the first major milestone in our planned multi-year rollout of SAP." "The continuing SAP implementation will be a key enabler to drive best-in-class business processes across the organization." |
| Net sales growth of 6.4% Double digit increase in the Home & Family segment, mid single digit increases in the Cleaning, Organization & Decor and Office Products segments, and a low single digit increase in Tools & Hardware Expanded gross margins 190 basis points to 35.6% Driven by Project Acceleration, Productivity, and Mix Improved operating income by $36 million or 18%, excluding Project Acceleration charges Increased "Normalized" EPS by $0.11 or approx. 27% Delivered operating cash flow of $283 million, $8 million above the high end of the previous guidance of $225 to $275 million Q3 2007 Financial Summary |
| Q4 2007 Guidance |
| FY 2007 Guidance |
| FY 2008 Guidance |
| Appendix |
| EPS Walk: Previous Guidance and Prior Year to Q307 |
| EPS Walk: Previous Guidance and Prior Year to FY 2007 |
| Reconciliation: Q306 and Q307 "Normalized" EPS A reconciliation of the third quarter 2007 and last year's results is as follows: |
| Reconciliation: Q406 and Q407 "Normalized" EPS |
| Reconciliation: FY 2006 and 2007 "Normalized" EPS |
| Reconciliation: Analyst Day 2007 "Normalized" EPS |
| EPS Walk: Analyst Day to FY 2007 |
| Reconciliation: 2008 "Normalized" EPS |