UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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 27, 2005
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 600 | ||
| Atlanta, Georgia | 30328 | |
| (Address of Principal Executive Offices) | (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))
Item 2.02. Results of Operations and Financial Condition.
The information in this Report, including the Exhibit attached hereto, is furnished pursuant to
Item 2.02 of Form 8-K. Consequently, it is 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. It
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 27, 2005, Newell Rubbermaid Inc. (the “Company”) reported its results for the fiscal
quarter ended September 30, 2005. The Company’s press release, dated October 27, 2005, 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 the financial measures that are included in the press release and Additional
Financial Information for several years, 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, net income from continuing operations and
gross margin, excluding restructuring, impairment and other charges (and as a percentage of sales),
and diluted earnings per share from continuing operations, excluding restructuring, impairment and
other 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 as cash generated from operations, net of capital
expenditures and dividends, is useful to investors because it is an indication of amounts of cash
flow that may be available for further investment in future growth initiatives. Another purpose
for which the Company uses or has used free cash flow and diluted earnings per share from
continuing operations, excluding restructuring, impairment and other charges, are as two of the
performance goals that help 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.
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 9.01 Financial Statements and Exhibits.
| (c) | Exhibits. |
| Exhibit | ||
| Number | Description | |
99.1
|
Press Release, dated October 27, 2005, 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 27, 2005 | By: | /s/ Dale L. Matschullat | ||
| Dale L. Matschullat | ||||
| Vice President — General Counsel & Corporate Secretary | ||||
EXHIBIT INDEX
| Exhibit No. | Description | |
99.1
|
Press Release, dated October 27, 2005, issued by Newell Rubbermaid Inc., and Additional Financial Information |
EXHIBIT 99.1
|
NEWS RELEASE |
| OCTOBER 27, 2005 | PAGE 1 OF 5 |
NEWELL RUBBERMAID REPORTS THIRD QUARTER 2005 RESULTS
Results Exceed Estimates
Gross Margin Improves 260 Basis Points
ATLANTA, October 27, 2005 - Newell Rubbermaid Inc. (NYSE: NWL)
today reported its third quarter 2005 results which were above
expectations and included strong gross margin improvement.
Third Quarter Results
Income from continuing operations for the third quarter ended September
30, 2005, was
$53.5 million, or $0.19 per share. Excluding impairment charges,
income from continuing operations was $112.1 million, or $0.41 per
share. These results include a tax benefit of
$15.3 million, or $0.06 per share, offset by restructuring and related
charges of approximately $25 million, or $0.06 per share.
Approximately $0.02 per share of restructuring and related charges
planned for the third quarter were not incurred. Loss from continuing
operations for the third quarter ended September 30, 2004, was $155.7
million, or $0.57 per share. Excluding restructuring and impairment
charges, income from continuing operations for the third quarter 2004
was $98.6 million, or $0.36 per share. A reconciliation of the results
“as reported” to results “excluding charges” is attached to this press
release.
Net sales in the third quarter 2005 were $1.60 billion, compared to
$1.62 billion in the third quarter 2004, a decrease of 1.4%. Net sales
reflected a positive pricing impact of 1.9% and a foreign currency
benefit of 0.9%. These were offset by a core sales decline of 1.7%,
primarily driven by continued weakness in the European Window Fashions
and Little Tikes businesses as well as the negative volume impact of
price increases in Rubbermaid Home Products, and an additional 2.5%
resulting from the planned exit of certain low-margin product lines.
The businesses the company includes in its “Invest” category generated
a 3.7% improvement in sales versus last year.
“Since stepping in to lead the organization, I’ve seen first hand the solid foundation that is in
place at Newell Rubbermaid. I am committed to continuing the strategic direction of the company
around investing in our strategic brands, achieving a best cost position and strengthening our
portfolio,” said Mark Ketchum, interim chief executive officer of Newell Rubbermaid. “We plan to
make investments in advertising and promotion and research and development around our
high-potential, high-margin brands.”
Ketchum added, “Developing best-in-class practices around product innovation, consumer
understanding and competitive benchmarking will be key drivers for our business as we work to
improve our financial performance for our shareholders. We will place greater emphasis on the
execution side of the business fundamentals, and on identifying cost inefficiencies within
selling, general and administrative expense.”
Gross margin for the third quarter 2005 improved to 31.3%, a 260 basis
point improvement from third quarter 2004 gross margin of 28.7%. The
company’s productivity savings and favorable pricing offset raw
material inflation.
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Nancy de Jonge Davis
Vice President, Investor Relations
& Corporate Communications
Vice President, Investor Relations
& Corporate Communications
Susan Masten
Director, Public Relations
Director, Public Relations
10B Glenlake Parkway
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
|
|
NEWS RELEASE |
| OCTOBER 27, 2005 | PAGE 2 OF 5 |
“We are facing increased costs around resin and other commodities, but believe the recent
spike in resin costs is temporary due to supply shortages caused primarily by the hurricanes in
the Gulf. We anticipate costs will remain at these higher levels into next year, but expect some
relief as capacity continues to come back on-line,” said Patrick Robinson, chief financial officer
of Newell Rubbermaid. “We will continue to take appropriate actions around pricing and
productivity to moderate a challenging commodities environment.”
During the third quarter 2005, the company recorded non-cash impairment
charges of $58.6 million. These charges were required to write down to
fair value certain assets related to the United Kingdom Window Fashions
business in the company’s Home Fashions segment and the European
Cookware business reported in the company’s Other segment. Consistent
with the company’s intent to divest non-strategic businesses and
concentrate on leveraging brand strength and product innovation in its
core portfolio of businesses, the company announced on October 11,
2005, its intent to sell the European Cookware business. This business
will be reported as discontinued operations beginning in the fourth
quarter 2005.
The company continues to classify a business, formerly reported in the
Cleaning & Organization segment, as discontinued operations. During
the third quarter 2005, the company recorded a gain of approximately
$20 million related to this business as several line reviews with key
retailers have increased the company’s valuation of this business.
Exceeding company expectations, net cash from operating activities was
$359.4 million in the third quarter 2005, compared to $284.8 million in
the third quarter 2004. The approximate $75 million increase was
primarily driven by a voluntary $50 million cash contribution to the
company’s pension plan in 2004, which was not repeated in 2005, as well
as a reduction of inventory levels. Capital expenditures in the third
quarter 2005 were $23.9 million compared to $25.0 million in the third
quarter 2004. The company continued to pay a strong dividend in the
quarter of $57.9 million, or $0.21 per share.
Nine Month Results
Income from continuing operations for the first nine months of 2005 was $241.8 million, or $0.88
per share. Excluding impairment charges, income from continuing operations for the first nine
months of 2005 was $300.4 million, or $1.09 per share. These results include a tax benefit of
$73.9 million, or $0.27 per share offset by planned restructuring and related charges of
approximately $61 million, or $0.15 per share. Loss from continuing operations for the first nine
months of 2004 was $65.1 million, or $0.24 per share. Excluding restructuring and impairment
charges, income from continuing operations for the first nine months of 2004 was $252.2 million,
or $0.92 per share. A reconciliation of the results “as reported” to results “excluding charges”
is attached to this press release.
Net sales for the first nine months of 2005 were $4.62 billion, a
decrease of 3.0% from $4.76 billion for the first nine months of 2004.
Foreign currency translation favorably impacted sales by 1.3% for the
first nine months, while pricing increased 2.0%. These were offset by
a core sales decline of 2.9%, primarily driven by the negative volume
impact of price increases in Rubbermaid Home Products and the continued
weakness in the European Window Fashions and Little Tikes businesses,
and an additional 3.4% resulting from the planned exit of certain
low-margin product lines.
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Nancy de Jonge Davis
Vice President, Investor Relations
& Corporate Communications
Vice President, Investor Relations
& Corporate Communications
Susan Masten
Director, Public Relations
Director, Public Relations
10B Glenlake Parkway
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
|
|
NEWS RELEASE |
| OCTOBER 27, 2005 | PAGE 3 OF 5 |
Net cash from operating activities was $451.3 million for the first nine months of 2005, compared
to $421.8 million for the first nine months of 2004. Capital expenditures for the first nine
months of 2005 were $69.9 million compared to $95.2 million for the first nine months of 2004,
reflecting the company’s continued decapitalization and efforts to reduce manufacturing overhead.
Dividends were $173.7 million for the first nine months of 2005.
Related to the divestitures of non-core businesses, the company recorded a net loss of $67.5
million, reported as discontinued operations during the first nine months of 2005.
Pension Outlook
The company estimates that it will record a fourth quarter non-cash charge to shareholders’ equity
in the range of $40 to $60 million to record the under-funded status of the pension plan. This
charge will not impact earnings or cash flow in 2005.
Outlook
The company continues to expect diluted earnings per share from continuing operations for the full
year 2005 to be in the range of $1.43 to $1.48. This range excludes non-cash impairment charges
of approximately $34 million, or $0.12 per share, related to the United Kingdom Window Fashions
business in the company’s Home Fashions segment. This outlook also does not include total net
losses reported as discontinued operations, including the company’s European Cookware business,
expected to be approximately $95 to $105 million. The company now expects internal sales to
decline approximately 3% for the full year 2005, primarily reflecting the company’s strategic
decision to exit $200 million in annual revenue of low-margin product lines, the volume impact
related to its pricing strategy and continued weakness in its European Window Fashions business.
For the fourth quarter 2005, the company expects diluted earnings per share from continuing
operations to be in the range of $0.33 to $0.38. The company expects internal sales to decline 2%
to 4% in the fourth quarter.
A reconciliation of the 2005 earnings outlook is as follows:
| Full Year | Fourth Quarter | |||||||
| Diluted earnings per share from continuing operations (as reported): | $ | 1.31 - $1.36 | $ | 0.33 - $0.38 | ||||
| Impairment charges | $ | 0.12 | — | |||||
| Diluted earnings per share from continuing operations (excluding charges): | $ | 1.43 - $1.48 | $ | 0.33 - $0.38 | ||||
For the full year 2005, the company now expects net cash from
operating activities to be in the range of $610 to $660 million.
Expenditures for property, plant and equipment are now expected to be
in the range of $100 to $110 million and dividends are expected to be
approximately $230 million for the full year 2005.
The company has not changed its previous 2006 guidance.
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Nancy de Jonge Davis
Vice President, Investor Relations
& Corporate Communications
Vice President, Investor Relations
& Corporate Communications
Susan Masten
Director, Public Relations
Director, Public Relations
10B Glenlake Parkway
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
|
|
NEWS RELEASE |
| OCTOBER 27, 2005 | PAGE 4 OF 5 |
Conference Call
The company’s third quarter 2005 earnings conference call is scheduled
for today, October 27, 2005, at 9:30 a.m. ET. Those interested in
participating should call (800) 869-2139 or internationally at (719)
867-0347 and provide the conference code 925536. The company’s call
will also be web cast. To listen to the web cast, use the link provided
under the Investor Relations Home Page on Newell Rubbermaid’s website
at www.newellrubbermaid.com.
A replay will be available approximately two hours after the call
concludes through November 30, 2005, and may be accessed domestically
at (888) 203-1112 or internationally at
(719) 457-0820. Conference call conference code 925536 is required to access the replay.
(719) 457-0820. Conference call conference code 925536 is required to access the replay.
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,
impairment and other charges, potential losses on divestiture, costs and cost savings and the
value thereof, 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,” “enable,” “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 in
various parts of the world; competition with numerous other manufacturers and distributors of
consumer products; major retailers’ strong bargaining power; changes in the prices of raw
materials used by the company; 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 in the face of 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
complete strategic acquisitions (including DYMO); our ability to integrate previously acquired
businesses; the risks inherent in our foreign operations and those factors listed in the company’s
most recent Form 10-Q or 10-K, including Exhibit 99.1 thereto, filed with the Securities and
Exchange Commission.
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.
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Nancy de Jonge Davis
Vice President, Investor Relations
& Corporate Communications
Vice President, Investor Relations
& Corporate Communications
Susan Masten
Director, Public Relations
Director, Public Relations
10B Glenlake Parkway
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
|
|
NEWS RELEASE |
| OCTOBER 27, 2005 | PAGE 5 OF 5 |
About the Company
Newell Rubbermaid Inc. is a global marketer of consumer and commercial
products with 2004 sales of $6.5 billion and a powerful brand family
including Sharpie®, Paper Mate®,
EXPO®, Waterman®, IRWIN®,
LENOX®, BernzOmatic®,
Rubbermaid®, Graco®, Calphalon®
and Goody®. The company is headquartered in Atlanta, Ga.,
and has approximately 30,000 employees worldwide.
This press release and additional information about the company are
available on the company’s web site at www.newellrubbermaid.com.
###
Newell Rubbermaid Inc.
Atlanta, GA
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Nancy de Jonge Davis
Vice President, Investor Relations
& Corporate Communications
Vice President, Investor Relations
& Corporate Communications
Susan Masten
Director, Public Relations
Director, Public Relations
10B Glenlake Parkway
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 770-407-3983
Suite 600
Atlanta, GA 30328
Phone: 770-407-3994
Fax: 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, | ||||||||||||||||||||||||||||
| 2005 | 2004 | |||||||||||||||||||||||||||
| As Reported | Charges (1) | Excl. Charges | As Reported | Charges (2) | Excl. Charges | % Change | ||||||||||||||||||||||
Net sales |
$ | 1,598.2 | $ | 1,598.2 | $ | 1,621.3 | $ | 1,621.3 | (1.4 | )% | ||||||||||||||||||
Cost of products sold |
1,098.0 | — | 1,098.0 | 1,156.6 | — | 1,156.6 | ||||||||||||||||||||||
GROSS MARGIN |
500.2 | — | 500.2 | 464.7 | — | 464.7 | 7.6 | % | ||||||||||||||||||||
% of sales |
31.3 | % | 31.3 | % | 28.7 | % | 28.7 | % | ||||||||||||||||||||
Selling, general & |
||||||||||||||||||||||||||||
administrative expense |
311.5 | — | 311.5 | 297.9 | — | 297.9 | 4.6 | % | ||||||||||||||||||||
% of sales |
19.5 | % | 19.5 | % | 18.4 | % | 18.4 | % | ||||||||||||||||||||
Impairment charge |
58.6 | (58.6 | ) | — | 270.0 | (270.0 | ) | — | ||||||||||||||||||||
Restructuring costs |
14.6 | — | 14.6 | 0.4 | (0.4 | ) | — | |||||||||||||||||||||
OPERATING INCOME (LOSS) |
115.5 | 58.6 | 174.1 | (103.6 | ) | 270.4 | 166.8 | 4.4 | % | |||||||||||||||||||
% of sales |
7.2 | % | 10.9 | % | (6.4 | )% | 10.3 | % | ||||||||||||||||||||
Nonoperating expenses: |
||||||||||||||||||||||||||||
Interest expense, net |
34.3 | — | 34.3 | 29.5 | — | 29.5 | ||||||||||||||||||||||
Other |
(0.6 | ) | — | (0.6 | ) | (0.3 | ) | — | (0.3 | ) | ||||||||||||||||||
| 33.7 | — | 33.7 | 29.2 | — | 29.2 | 15.4 | % | |||||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
81.8 | 58.6 | 140.4 | (132.8 | ) | 270.4 | 137.6 | 2.0 | % | |||||||||||||||||||
% of sales |
5.1 | % | 8.8 | % | (8.2 | )% | 8.5 | % | ||||||||||||||||||||
Income taxes |
28.3 | — | 28.3 | 22.9 | 16.1 | 39.0 | (27.4 | )% | ||||||||||||||||||||
Effective rate |
34.6 | % | 20.2 | % | (17.2 | )% | 28.3 | % | ||||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS |
53.5 | 58.6 | 112.1 | (155.7 | ) | 254.3 | 98.6 | 13.7 | % | |||||||||||||||||||
% of sales |
3.3 | % | 7.0 | % | (9.6 | )% | 6.1 | % | ||||||||||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||||||||||
Net income (loss) |
18.0 | (18.0 | ) | — | (70.7 | ) | 70.7 | — | ||||||||||||||||||||
NET INCOME (LOSS) |
$ | 71.5 | $ | 40.6 | $ | 112.1 | $ | (226.4 | ) | $ | 325.0 | $ | 98.6 | 13.7 | % | |||||||||||||
% of sales |
4.5 | % | 7.0 | % | (14.0 | )% | 6.1 | % | ||||||||||||||||||||
EARNINGS (LOSS) PER SHARE FROM |
||||||||||||||||||||||||||||
CONTINUING OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | 0.19 | $ | 0.21 | $ | 0.41 | $ | (0.57 | ) | $ | 0.93 | $ | 0.36 | |||||||||||||||
Diluted |
$ | 0.19 | $ | 0.21 | $ | 0.41 | $ | (0.57 | ) | $ | 0.93 | $ | 0.36 | |||||||||||||||
EARNINGS (LOSS) PER SHARE FROM |
||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | 0.07 | $ | (0.07 | ) | $ | — | $ | (0.26 | ) | $ | 0.26 | $ | — | ||||||||||||||
Diluted |
$ | 0.07 | $ | (0.07 | ) | $ | — | $ | (0.26 | ) | $ | 0.26 | $ | — | ||||||||||||||
EARNINGS (LOSS) PER SHARE: |
||||||||||||||||||||||||||||
Basic |
$ | 0.26 | $ | 0.15 | $ | 0.41 | $ | (0.83 | ) | $ | 1.18 | $ | 0.36 | |||||||||||||||
Diluted |
$ | 0.26 | $ | 0.15 | $ | 0.41 | $ | (0.83 | ) | $ | 1.18 | $ | 0.36 | |||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||
Basic |
274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | ||||||||||||||||||||||
Diluted |
275.0 | 275.0 | 275.0 | 274.4 | 274.4 | 274.4 | ||||||||||||||||||||||
| (1) | Charges excluded from “as reported” results for 2005 consist of a $58.6 million charge related to asset impairment and $18.0 million of net income related to discontinued operations. | |
| (2) | Charges excluded from “as reported” results for 2004 consist of a $270.0 million charge related to asset impairment, $0.4 million of restructuring costs related to exiting certain facilities, and a $70.7 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, | ||||||||||||||||||||||||||||
| 2005 | 2004 | |||||||||||||||||||||||||||
| As Reported | Charges (1) | Excl. Charges | As Reported | Charges (2) | Excl. Charges | % Change | ||||||||||||||||||||||
Net sales |
$ | 4,616.3 | $ | 4,616.3 | $ | 4,759.2 | $ | 4,759.2 | (3.0 | )% | ||||||||||||||||||
Cost of products sold |
3,232.9 | — | 3,232.9 | 3,415.2 | (14.9 | ) | 3,400.3 | |||||||||||||||||||||
GROSS MARGIN |
1,383.4 | — | 1,383.4 | 1,344.0 | 14.9 | 1,358.9 | 1.8 | % | ||||||||||||||||||||
% of sales |
30.0 | % | 30.0 | % | 28.2 | % | 28.6 | % | ||||||||||||||||||||
Selling, general & |
||||||||||||||||||||||||||||
administrative expense |
938.8 | — | 938.8 | 915.1 | (1.7 | ) | 913.4 | 2.8 | % | |||||||||||||||||||
% of sales |
20.3 | % | 20.3 | % | 19.2 | % | 19.2 | % | ||||||||||||||||||||
Impairment charge |
58.6 | (58.6 | ) | — | 295.1 | (295.1 | ) | — | ||||||||||||||||||||
Restructuring costs |
21.1 | — | 21.1 | 47.7 | (47.7 | ) | — | |||||||||||||||||||||
OPERATING INCOME |
364.9 | 58.6 | 423.5 | 86.1 | 359.4 | 445.5 | (4.9 | )% | ||||||||||||||||||||
% of sales |
7.9 | % | 9.2 | % | 1.8 | % | 9.4 | % | ||||||||||||||||||||
Nonoperating expenses: |
||||||||||||||||||||||||||||
Interest expense, net |
96.2 | — | 96.2 | 89.9 | — | 89.9 | ||||||||||||||||||||||
Other |
(1.0 | ) | — | (1.0 | ) | 3.7 | — | 3.7 | ||||||||||||||||||||
| 95.2 | — | 95.2 | 93.6 | — | 93.6 | 1.7 | % | |||||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
269.7 | 58.6 | 328.3 | (7.5 | ) | 359.4 | 351.9 | (6.7 | )% | |||||||||||||||||||
% of sales |
5.8 | % | 7.1 | % | -0.2 | % | 7.4 | % | ||||||||||||||||||||
Income taxes |
27.9 | — | 27.9 | 57.6 | 42.1 | 99.7 | (72.0 | )% | ||||||||||||||||||||
Effective rate |
10.3 | % | 8.5 | % | -768.0 | % | 28.3 | % | ||||||||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS |
241.8 | 58.6 | 300.4 | (65.1 | ) | 317.3 | 252.2 | 19.1 | % | |||||||||||||||||||
% of sales |
5.2 | % | 6.5 | % | -1.4 | % | 5.3 | % | ||||||||||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||||||||||
Net loss |
(67.5 | ) | 67.5 | — | (175.2 | ) | 175.2 | — | ||||||||||||||||||||
NET INCOME (LOSS) |
$ | 174.3 | $ | 126.1 | $ | 300.4 | $ | (240.3 | ) | $ | 492.5 | $ | 252.2 | 19.1 | % | |||||||||||||
% of sales |
3.8 | % | 6.5 | % | (5.0 | )% | 5.3 | % | ||||||||||||||||||||
EARNINGS (LOSS) PER SHARE FROM |
||||||||||||||||||||||||||||
CONTINUING OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | 0.88 | $ | 0.21 | $ | 1.09 | $ | (0.24 | ) | $ | 1.16 | $ | 0.92 | |||||||||||||||
Diluted |
$ | 0.88 | $ | 0.21 | $ | 1.09 | $ | (0.24 | ) | $ | 1.16 | $ | 0.92 | |||||||||||||||
LOSS PER SHARE FROM |
||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS: |
||||||||||||||||||||||||||||
Basic |
$ | (0.25 | ) | $ | 0.25 | $ | — | $ | (0.64 | ) | $ | 0.64 | $ | — | ||||||||||||||
Diluted |
$ | (0.25 | ) | $ | 0.25 | $ | — | $ | (0.64 | ) | $ | 0.64 | $ | — | ||||||||||||||
EARNINGS (LOSS) PER SHARE: |
||||||||||||||||||||||||||||
Basic |
$ | 0.64 | $ | 0.46 | $ | 1.09 | $ | (0.88 | ) | $ | 1.79 | $ | 0.92 | |||||||||||||||
Diluted |
$ | 0.63 | $ | 0.46 | $ | 1.09 | $ | (0.88 | ) | $ | 1.79 | $ | 0.92 | |||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||
Basic |
274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | ||||||||||||||||||||||
Diluted |
274.8 | 274.8 | 274.8 | 274.4 | 274.4 | 274.4 | ||||||||||||||||||||||
| 1) | Charges excluded from “as reported” results for 2005 consist of a $58.6 million charge
related to asset impairment and a $67.5 million net loss related to discontinued operations. |
|
| (2) | Charges excluded from “as reported” results for 2004 are restructuring, restructuring related and impairment charges and the net loss related to discontinued operations. These charges consist of $14.9 million in restructuring related costs associated with product line exits (shown in cost of products sold), $1.7 million of restructuring costs related to relocation of property and equipment (shown in selling, general and administrative expense), $295.1 million in asset impairment, $47.7 million of restructuring costs related to exiting certain facilities (shown in restructuring costs), and a $175.2 million net loss related to discontinued operations. |
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
| September 30, | September 30, | |||||||
| 2005 | 2004 | |||||||
Assets: |
||||||||
Cash and cash equivalents |
$ | 485.5 | $ | 354.5 | ||||
Accounts receivable, net |
1,082.1 | 1,136.9 | ||||||
Inventories, net |
1,010.6 | 1,032.2 | ||||||
Deferred income taxes |
69.7 | 115.3 | ||||||
Prepaid expenses and other |
107.2 | 161.4 | ||||||
Current assets of discontinued operations |
8.0 | 77.0 | ||||||
Total Current Assets |
2,763.1 | 2,877.3 | ||||||
Other assets |
232.7 | 271.7 | ||||||
Property, plant and equipment, net |
1,005.7 | 1,256.9 | ||||||
Goodwill |
1,769.0 | 1,794.4 | ||||||
Deferred income taxes |
2.1 | 10.1 | ||||||
Other intangible assets, net |
312.2 | 302.0 | ||||||
Non-current assets of discontinued operations |
42.2 | 93.6 | ||||||
Total Assets |
$ | 6,127.0 | $ | 6,606.0 | ||||
Liabilities and Stockholders’ Equity: |
||||||||
Notes payable |
$ | 6.2 | $ | 14.0 | ||||
Accounts payable |
576.4 | 613.1 | ||||||
Accrued compensation |
138.3 | 140.3 | ||||||
Other accrued liabilities |
699.7 | 804.0 | ||||||
Income taxes payable |
46.8 | 134.0 | ||||||
Current portion of long-term debt |
25.4 | 215.0 | ||||||
Current liabilities of discontinued operations |
0.1 | 33.5 | ||||||
Total Current Liabilities |
1,492.9 | 1,953.9 | ||||||
Long-term debt |
2,377.4 | 2,439.6 | ||||||
Other non-current liabilities |
537.6 | 584.9 | ||||||
Long-term liabilities of discontinued operations |
— | 0.9 | ||||||
Stockholders’ Equity |
1,719.1 | 1,626.7 | ||||||
Total Liabilities and Stockholders’ Equity |
$ | 6,127.0 | $ | 6,606.0 | ||||
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, | ||||||||
| 2005 | 2004 | |||||||
Operating Activities: |
||||||||
Net income (loss) |
$ | 174.3 | $ | (240.3 | ) | |||
Adjustments to reconcile net income (loss) to net cash |
||||||||
provided by operating activities: |
||||||||
Depreciation and amortization |
161.5 | 171.5 | ||||||
Impairment charges |
58.6 | 374.0 | ||||||
Non-cash restructuring costs |
5.3 | 25.3 | ||||||
Deferred income taxes |
18.5 | 85.1 | ||||||
Gain on sale of assets/debt extinguishment |
(7.1 | ) | (6.5 | ) | ||||
Loss on disposal of discontinued operations |
67.4 | 90.5 | ||||||
Other |
(10.2 | ) | (4.8 | ) | ||||
Changes in current accounts, excluding
the effects of acquisitions: |
||||||||
Accounts receivable |
122.8 | 211.0 | ||||||
Inventories |
(92.0 | ) | (196.3 | ) | ||||
Accounts payable |
(78.0 | ) | (55.9 | ) | ||||
Accrued liabilities and other |
20.7 | (34.5 | ) | |||||
Discontinued operations |
9.5 | 2.7 | ||||||
Net cash provided by operating activities |
$ | 451.3 | $ | 421.8 | ||||
Investing Activities: |
||||||||
Acquisitions, net of cash acquired |
$ | (35.3 | ) | $ | (3.0 | ) | ||
Expenditures for property, plant and equipment |
(69.9 | ) | (95.2 | ) | ||||
Disposals of non-current assets and sale of businesses |
29.4 | 289.2 | ||||||
Net cash (used in) provided by investing activities |
$ | (75.8 | ) | $ | 191.0 | |||
Financing Activities: |
||||||||
Proceeds from issuance of debt |
$ | 134.1 | $ | 21.3 | ||||
Payments on notes payable and long-term debt |
(345.0 | ) | (251.9 | ) | ||||
Cash dividends |
(173.7 | ) | (173.2 | ) | ||||
Proceeds from exercised stock options and other |
(2.8 | ) | 1.4 | |||||
Net cash used in financing activities |
$ | (387.4 | ) | $ | (402.4 | ) | ||
Exchange rate effect on cash and cash equivalents |
$ | (8.2 | ) | $ | (0.3 | ) | ||
(Decrease) Increase in cash and cash equivalents |
(20.1 | ) | 210.1 | |||||
Cash and cash equivalents at beginning of year |
505.6 | 144.4 | ||||||
Cash and cash equivalents at end of period |
$ | 485.5 | $ | 354.5 | ||||
Newell Rubbermaid Inc.
Calculation of Free Cash Flow (1)
Calculation of Free Cash Flow (1)
| For The Three Months Ended September 30, | ||||||||
| Free Cash Flow (in millions): | 2005 | 2004 | ||||||
Net cash provided by operating activities |
$ | 359.4 | $ | 284.8 | ||||
Expenditures for property, plant and equipment |
(23.9 | ) | (25.0 | ) | ||||
Cash dividends |
(57.9 | ) | (57.6 | ) | ||||
Free Cash Flow |
$ | 277.6 | $ | 202.2 | ||||
| For The Nine Months Ended September 30, | ||||||||
| Free Cash Flow (in millions): | 2005 | 2004 | ||||||
Net cash provided by operating activities |
$ | 451.3 | $ | 421.8 | ||||
Expenditures for property, plant and equipment |
(69.9 | ) | (95.2 | ) | ||||
Cash dividends |
(173.7 | ) | (173.2 | ) | ||||
Free Cash Flow |
$ | 207.7 | $ | 153.4 | ||||
| (1) | Free cash flow is defined as cash flow provided by operating activities less expenditures for property, plant and equipment and cash dividends. |
Newell Rubbermaid Inc.
Financial Worksheet
In Millions
Financial Worksheet
In Millions
| 2005 | 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 |
$ | 324.5 | $ | 12.5 | $ | — | $ | 12.5 | 3.9 | % | $ | 385.8 | $ | 16.2 | $ | 2.8 | $ | 19.0 | 4.9 | % | $ | (61.3 | ) | (15.9 | )% | $ | (6.5 | ) | (34.2 | )% | ||||||||||||||||||||||||||
Office Products |
332.8 | 33.5 | — | 33.5 | 10.1 | % | 332.8 | 31.8 | — | 31.8 | 9.6 | % | 0.0 | 0.0 | % | 1.7 | 5.3 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
276.4 | 26.7 | — | 26.7 | 9.7 | % | 274.3 | 43.0 | — | 43.0 | 15.7 | % | 2.1 | 0.8 | % | (16.3 | ) | (37.9 | )% | |||||||||||||||||||||||||||||||||||||
Home Fashions |
198.3 | (4.5 | ) | — | (4.5 | ) | (2.3 | %) | 226.8 | 3.9 | 0.6 | 4.5 | 2.0 | % | (28.5 | ) | (12.6 | )% | (9.0 | ) | (200.0 | )% | ||||||||||||||||||||||||||||||||||
Other |
245.0 | 13.3 | — | 13.3 | 5.4 | % | 251.0 | 15.9 | — | 15.9 | 6.3 | % | (6.0 | ) | (2.4 | )% | (2.6 | ) | (16.4 | )% | ||||||||||||||||||||||||||||||||||||
Impairment |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(6.2 | ) | — | (6.2 | ) | (21.6 | ) | 21.6 | — | (6.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(9.5 | ) | — | (9.5 | ) | (7.4 | ) | — | (7.4 | ) | (2.1 | ) | 28.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,377.0 | $ | 65.8 | $ | — | $ | 65.8 | 4.8 | % | $ | 1,470.7 | $ | 81.8 | $ | 25.0 | $ | 106.8 | 7.3 | % | $ | (93.7 | ) | (6.4 | )% | $ | (41.0 | ) | (38.4 | )% | ||||||||||||||||||||||||||
Core businesses |
1,377.0 | 65.8 | — | 65.8 | 4.8 | % | 1,470.7 | 81.8 | 25.0 | 106.8 | 7.3 | % | (93.7 | ) | (6.4 | )% | (41.0 | ) | (38.4 | )% | ||||||||||||||||||||||||||||||||||||
Acquisitions / Divestitures |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,377.0 | $ | 65.8 | $ | — | $ | 65.8 | 4.8 | % | $ | 1,470.7 | $ | 81.8 | $ | 25.0 | $ | 106.8 | 7.3 | % | $ | (93.7 | ) | (6.4 | )% | $ | (41.0 | ) | (38.4 | )% | ||||||||||||||||||||||||||
| 2005 | 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 |
$ | 376.5 | $ | 23.1 | $ | — | $ | 23.1 | 6.1 | % | $ | 400.1 | $ | 9.2 | $ | 5.4 | $ | 14.6 | 3.6 | % | $ | (23.6 | ) | (5.9 | )% | $ | 8.5 | 58.2 | % | |||||||||||||||||||||||||||
Office Products |
495.5 | 98.9 | — | 98.9 | 20.0 | % | 489.2 | 95.5 | 0.3 | 95.8 | 19.6 | % | 6.3 | 1.3 | % | 3.1 | 3.2 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
315.5 | 49.3 | — | 49.3 | 15.6 | % | 300.3 | 43.5 | 3.1 | 46.6 | 15.5 | % | 15.2 | 5.1 | % | 2.7 | 5.8 | % | ||||||||||||||||||||||||||||||||||||||
Home Fashions |
212.0 | 3.6 | — | 3.6 | 1.7 | % | 224.2 | 5.2 | 4.1 | 9.3 | 4.1 | % | (12.2 | ) | (5.4 | )% | (5.7 | ) | (61.3 | )% | ||||||||||||||||||||||||||||||||||||
Other |
241.6 | 18.7 | — | 18.7 | 7.7 | % | 253.4 | 15.0 | 0.2 | 15.2 | 6.0 | % | (11.8 | ) | (4.7 | )% | 3.5 | 23.0 | % | |||||||||||||||||||||||||||||||||||||
Impairment |
— | — | — | (25.1 | ) | 25.1 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(0.3 | ) | — | (0.3 | ) | (25.7 | ) | 25.7 | — | (0.3 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(9.7 | ) | — | (9.7 | ) | (9.7 | ) | — | (9.7 | ) | — | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,641.1 | $ | 183.6 | $ | — | $ | 183.6 | 11.2 | % | $ | 1,667.2 | $ | 107.9 | $ | 63.9 | $ | 171.8 | 10.3 | % | $ | (26.1 | ) | (1.6 | )% | $ | 11.8 | 6.9 | % | |||||||||||||||||||||||||||
Core businesses |
1,641.1 | 183.6 | — | 183.6 | 11.2 | % | 1,667.2 | 107.9 | 63.9 | 171.8 | 10.3 | % | (26.1 | ) | (1.6 | )% | 11.8 | 6.9 | % | |||||||||||||||||||||||||||||||||||||
Acquisitions / Divestitures |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,641.1 | $ | 183.6 | $ | — | $ | 183.6 | 11.2 | % | $ | 1,667.2 | $ | 107.9 | $ | 63.9 | $ | 171.8 | 10.3 | % | $ | (26.1 | ) | (1.6 | )% | $ | 11.8 | 6.9 | % | |||||||||||||||||||||||||||
| 2005 | 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 |
$ | 392.7 | $ | 53.7 | $ | — | $ | 53.7 | 13.7 | % | $ | 405.4 | $ | 29.8 | $ | — | $ | 29.8 | 7.4 | % | $ | (12.7 | ) | (3.1 | )% | $ | 23.9 | 80.2 | % | |||||||||||||||||||||||||||
Office Products |
427.8 | 59.9 | — | 59.9 | 14.0 | % | 424.3 | 61.5 | — | 61.5 | 14.5 | % | 3.5 | 0.8 | % | (1.6 | ) | (2.6 | )% | |||||||||||||||||||||||||||||||||||||
Tools & Hardware |
318.9 | 46.3 | — | 46.3 | 14.5 | % | 300.6 | 45.1 | — | 45.1 | 15.0 | % | 18.3 | 6.1 | % | 1.2 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||
Home Fashions |
203.8 | 13.8 | — | 13.8 | 6.8 | % | 228.1 | 15.9 | — | 15.9 | 7.0 | % | (24.3 | ) | (10.7 | )% | (2.1 | ) | (13.2 | )% | ||||||||||||||||||||||||||||||||||||
Other |
255.0 | 25.1 | — | 25.1 | 9.8 | % | 262.9 | 24.7 | — | 24.7 | 9.4 | % | (7.9 | ) | (3.0 | )% | 0.4 | 1.6 | % | |||||||||||||||||||||||||||||||||||||
Impairment |
(58.6 | ) | 58.6 | — | (270.0 | ) | 270.0 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(14.6 | ) | — | (14.6 | ) | (0.4 | ) | 0.4 | — | (14.6 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(10.1 | ) | — | (10.1 | ) | (10.2 | ) | — | (10.2 | ) | 0.1 | (1.0 | )% | |||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,598.2 | $ | 115.5 | $ | 58.6 | $ | 174.1 | 10.9 | % | $ | 1,621.3 | $ | (103.6 | ) | $ | 270.4 | $ | 166.8 | 10.3 | % | $ | (23.1 | ) | (1.4 | )% | $ | 7.3 | 4.4 | % | ||||||||||||||||||||||||||
Core businesses |
1,598.2 | 115.5 | 58.6 | 174.1 | 10.9 | % | 1,621.3 | (103.6 | ) | 270.4 | 166.8 | 10.3 | % | (23.1 | ) | (1.4 | )% | 7.3 | 4.4 | % | ||||||||||||||||||||||||||||||||||||
Acquisitions / Divestitures |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 1,598.2 | $ | 115.5 | $ | 58.6 | $ | 174.1 | 10.9 | % | $ | 1,621.3 | $ | (103.6 | ) | $ | 270.4 | $ | 166.8 | 10.3 | % | $ | (23.1 | ) | (1.4 | )% | $ | 7.3 | 4.4 | % | ||||||||||||||||||||||||||
| 2005 | 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 |
$ | 1,093.7 | $ | 89.3 | $ | — | $ | 89.3 | 8.2 | % | $ | 1,191.3 | $ | 55.2 | $ | 8.2 | $ | 63.4 | 5.3 | % | $ | (97.6 | ) | (8.2 | )% | $ | 25.9 | 40.9 | % | |||||||||||||||||||||||||||
Office Products |
1,256.1 | 192.3 | — | 192.3 | 15.3 | % | 1,246.3 | 188.8 | 0.4 | 189.2 | 15.2 | % | 9.8 | 0.8 | % | 3.1 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
910.8 | 122.3 | — | 122.3 | 13.4 | % | 875.2 | 131.6 | 3.1 | 134.7 | 15.4 | % | 35.6 | 4.1 | % | (12.4 | ) | (9.2 | )% | |||||||||||||||||||||||||||||||||||||
Home Fashions |
614.1 | 12.9 | — | 12.9 | 2.1 | % | 679.1 | 25.0 | 4.7 | 29.7 | 4.4 | % | (65.0 | ) | (9.6 | )% | (16.8 | ) | (56.6 | )% | ||||||||||||||||||||||||||||||||||||
Other |
741.6 | 57.1 | — | 57.1 | 7.7 | % | 767.3 | 55.6 | 0.2 | 55.8 | 7.3 | % | (25.7 | ) | (3.3 | )% | 1.3 | 2.3 | % | |||||||||||||||||||||||||||||||||||||
Impairment |
(58.6 | ) | 58.6 | — | (295.1 | ) | 295.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs |
(21.1 | ) | — | (21.1 | ) | (47.7 | ) | 47.7 | — | (21.1 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Corporate |
(29.3 | ) | — | (29.3 | ) | (27.3 | ) | — | (27.3 | ) | (2.0 | ) | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 4,616.3 | $ | 364.9 | $ | 58.6 | $ | 423.5 | 9.2 | % | $ | 4,759.2 | $ | 86.1 | $ | 359.4 | $ | 445.5 | 9.4 | % | $ | (142.9 | ) | (3.0 | )% | $ | (22.0 | ) | (4.9 | )% | ||||||||||||||||||||||||||
Core businesses |
4,616.3 | 364.9 | 58.6 | 423.5 | 9.2 | % | 4,759.2 | 86.1 | 359.4 | 445.5 | 9.4 | % | (142.9 | ) | (3.0 | )% | (22.0 | ) | (4.9 | )% | ||||||||||||||||||||||||||||||||||||
Acquisitions / Divestitures |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 4,616.3 | $ | 364.9 | $ | 58.6 | $ | 423.5 | 9.2 | % | $ | 4,759.2 | $ | 86.1 | $ | 359.4 | $ | 445.5 | 9.4 | % | $ | (142.9 | ) | (3.0 | )% | $ | (22.0 | ) | (4.9 | )% | ||||||||||||||||||||||||||
| (1) | Charges are primarily related to restructuring, impairment and product line exits. |
Newell Rubbermaid Inc.
Three Months Ended September 30, 2005
In Millions
Three Months Ended September 30, 2005
In Millions
Currency Analysis
| 2005 | 2004 | Year-over-year Increase (Decrease) | ||||||||||||||||||||||||||
| Sales as | Currency | Adjusted | Sales as | Excluding | Including | Currency | ||||||||||||||||||||||
| By Segment | Reported | Impact | Sales | Reported | Currency | Currency | Impact | |||||||||||||||||||||
Cleaning & Organization |
$ | 392.7 | $ | (3.5 | ) | $ | 389.2 | $ | 405.4 | (4.0 | )% | (3.1 | )% | 0.9 | % | |||||||||||||
Office Products |
427.8 | (4.0 | ) | 423.8 | 424.3 | (0.1 | )% | 0.8 | % | 0.9 | % | |||||||||||||||||
Tools & Hardware |
318.9 | (4.1 | ) | 314.8 | 300.6 | 4.7 | % | 6.1 | % | 1.4 | % | |||||||||||||||||
Home Fashions |
203.8 | (1.3 | ) | 202.5 | 228.1 | (11.2 | )% | (10.7 | )% | 0.6 | % | |||||||||||||||||
Other |
255.0 | (1.0 | ) | 254.0 | 262.9 | (3.4 | )% | (3.0 | )% | 0.4 | % | |||||||||||||||||
Total Company |
$ | 1,598.2 | $ | (13.9 | ) | $ | 1,584.3 | $ | 1,621.3 | (2.3 | )% | (1.4 | )% | 0.9 | % | |||||||||||||
| By Geography |
||||||||||||||||||||||||||||
United States |
$ | 1,129.0 | $ | — | $ | 1,129.0 | $ | 1,155.9 | (2.3 | )% | (2.3 | )% | 0.0 | % | ||||||||||||||
Canada |
100.3 | (8.4 | ) | 91.9 | 86.9 | 5.8 | % | 15.4 | % | 9.7 | % | |||||||||||||||||
North America |
1,229.3 | (8.4 | ) | 1,220.9 | 1,242.8 | (1.8 | )% | (1.1 | )% | 0.7 | % | |||||||||||||||||
Europe |
267.2 | 0.3 | 267.5 | 294.5 | (9.2 | )% | (9.3 | )% | (0.1 | )% | ||||||||||||||||||
Central & South America |
61.7 | (4.4 | ) | 57.3 | 48.2 | 18.9 | % | 28.0 | % | 9.1 | % | |||||||||||||||||
All Other |
40.0 | (1.4 | ) | 38.6 | 35.8 | 7.8 | % | 11.7 | % | 3.9 | % | |||||||||||||||||
Total Company |
$ | 1,598.2 | $ | (13.9 | ) | $ | 1,584.3 | $ | 1,621.3 | (2.3 | )% | (1.4 | )% | 0.9 | % | |||||||||||||
Newell Rubbermaid Inc.
Nine Months Ended September 30, 2005
In Millions
Nine Months Ended September 30, 2005
In Millions
Currency Analysis
| 2005 | 2004 | Year-over-year Increase (Decrease) | ||||||||||||||||||||||||||
| Sales as | Currency | Adjusted | Sales as | Excluding | Including | Currency | ||||||||||||||||||||||
| By Segment | Reported | Impact | Sales | Reported | Currency | Currency | Impact | |||||||||||||||||||||
Cleaning & Organization |
$ | 1,093.7 | $ | (12.5 | ) | $ | 1,081.2 | $ | 1,191.3 | (9.2 | )% | (8.2 | )% | 1.0 | % | |||||||||||||
Office Products |
1,256.1 | (17.8 | ) | 1,238.3 | 1,246.3 | (0.6 | )% | 0.8 | % | 1.4 | % | |||||||||||||||||
Tools & Hardware |
910.8 | (13.6 | ) | 897.2 | 875.2 | 2.5 | % | 4.1 | % | 1.6 | % | |||||||||||||||||
Home Fashions |
614.1 | (13.6 | ) | 600.5 | 679.1 | (11.6 | )% | (9.6 | )% | 2.0 | % | |||||||||||||||||
Other |
741.6 | (5.0 | ) | 736.6 | 767.3 | (4.0 | )% | (3.3 | )% | 0.7 | % | |||||||||||||||||
Total Company |
$ | 4,616.3 | $ | (62.5 | ) | $ | 4,553.8 | $ | 4,759.2 | (4.3 | )% | (3.0 | )% | 1.3 | % | |||||||||||||
| By Geography |
||||||||||||||||||||||||||||
United States |
$ | 3,208.3 | $ | — | $ | 3,208.3 | $ | 3,313.7 | (3.2 | )% | (3.2 | )% | 0.0 | % | ||||||||||||||
Canada |
266.2 | (21.2 | ) | 245.0 | 248.7 | (1.5 | )% | 7.0 | % | 8.5 | % | |||||||||||||||||
North America |
3,474.5 | (21.2 | ) | 3,453.3 | 3,562.4 | (3.1 | )% | (2.5 | )% | 0.6 | % | |||||||||||||||||
Europe |
864.1 | (29.2 | ) | 834.9 | 937.2 | (10.9 | )% | (7.8 | )% | 3.1 | % | |||||||||||||||||
Central & South America |
162.9 | (8.2 | ) | 154.7 | 148.7 | 4.0 | % | 9.5 | % | 5.5 | % | |||||||||||||||||
All Other |
114.8 | (3.9 | ) | 110.9 | 110.9 | 0.0 | % | 3.5 | % | 3.5 | % | |||||||||||||||||
Total Company |
$ | 4,616.3 | $ | (62.5 | ) | $ | 4,553.8 | $ | 4,759.2 | (4.3 | )% | (3.0 | )% | 1.3 | % | |||||||||||||
Newell Rubbermaid Inc.
2003-2005 Quarterly Segment Sales and Operating Income
Restated to exclude Newell Cookware Europe from the Other reporting segment
October 27, 2005
2003-2005 Quarterly Segment Sales and Operating Income
Restated to exclude Newell Cookware Europe from the Other reporting segment
October 27, 2005
On October 11, 2005, Newell Rubbermaid announced its intent to sell its Cookware Europe
business. The schedule below shows the impact of this business, which will be reported as discontinued operations, beginning in the fourth quarter 2005.
| 2005 | Q1 | Q2 | Q3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | ||||||||||||||||||||||||||||||||||||||||||||||
Cleaning & Organization |
$ | 324.5 | $ | 12.5 | — | $ | 12.5 | 3.9 | % | $ | 376.5 | $ | 23.1 | — | $ | 23.1 | 6.1 | % | $ | 392.7 | $ | 53.7 | — | $ | 53.7 | 13.7 | % | |||||||||||||||||||||||||||||||||
Office Products |
332.8 | 33.5 | — | 33.5 | 10.1 | % | 495.5 | 98.9 | — | 98.9 | 20.0 | % | 427.8 | 59.9 | — | 59.9 | 14.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
276.4 | 26.7 | — | 26.7 | 9.7 | % | 315.5 | 49.3 | — | 49.3 | 15.6 | % | 318.9 | 46.3 | — | 46.3 | 14.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Home Fashions |
198.3 | (4.5 | ) | — | (4.5 | ) | (2.3 | %) | 212.0 | 3.6 | — | 3.6 | 1.7 | % | 203.8 | 13.8 | — | 13.8 | 6.8 | % | ||||||||||||||||||||||||||||||||||||||||
Other |
214.5 | 15.5 | — | 15.5 | 7.2 | % | 218.0 | 19.7 | — | 19.7 | 9.0 | % | 228.0 | 28.0 | — | 28.0 | 12.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Corporate |
— | (9.5 | ) | — | (9.5 | ) | — | (9.7 | ) | — | (9.7 | ) | — | (10.1 | ) | — | (10.1 | ) | ||||||||||||||||||||||||||||||||||||||||||
Impairment |
— | — | — | — | — | — | — | — | — | (34.3 | ) | 34.3 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Restructuring |
— | (5.9 | ) | — | (5.9 | ) | — | (0.7 | ) | — | (0.7 | ) | — | (14.6 | ) | — | (14.6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
1,346.5 | 68.3 | — | 68.3 | 5.1 | % | 1,617.5 | 184.2 | — | 184.2 | 11.4 | % | 1,571.2 | 142.7 | 34.3 | 177.0 | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Newell Cookware Europe |
30.5 | (2.5 | ) | — | (2.5 | ) | (8.2 | %) | 23.6 | (0.6 | ) | (0.6 | ) | (2.5 | %) | 27.0 | (27.2 | ) | 24.3 | (2.9 | ) | (10.7 | %) | |||||||||||||||||||||||||||||||||||||
Total |
1,377.0 | 65.8 | — | 65.8 | 4.8 | % | 1,641.1 | 183.6 | — | 183.6 | 11.2 | % | 1,598.2 | 115.5 | 58.6 | 174.1 | 10.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| 2004 | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning & Organization |
$ | 385.8 | $ | 16.2 | 2.8 | $ | 19.0 | 4.9 | % | $ | 400.1 | $ | 9.2 | 5.4 | $ | 14.6 | 3.6 | % | $ | 405.4 | $ | 29.8 | — | $ | 29.8 | 7.4 | % | $ | 440.8 | $ | 45.5 | — | $ | 45.5 | 10.3 | % | 1,632.1 | 100.9 | 8.1 | 109.0 | 6.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office Products |
332.8 | 31.8 | — | 31.8 | 9.6 | % | 489.2 | 95.5 | 0.3 | 95.8 | 19.6 | % | 424.3 | 61.5 | — | 61.5 | 14.5 | % | 439.9 | 73.2 | — | 73.2 | 16.6 | % | 1,686.2 | 261.9 | 0.3 | 262.3 | 15.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
274.3 | 43.0 | — | 43.0 | 15.7 | % | 300.3 | 43.5 | 3.1 | 46.6 | 15.5 | % | 300.6 | 45.1 | — | 45.1 | 15.0 | % | 343.5 | 50.1 | — | 50.1 | 14.6 | % | 1,218.7 | 181.8 | 3.1 | 184.8 | 15.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Fashions |
226.8 | 3.9 | 0.6 | 4.5 | 2.0 | % | 224.2 | 5.2 | 4.1 | 9.3 | 4.1 | % | 228.1 | 15.9 | — | 15.9 | 7.0 | % | 227.7 | 8.1 | — | 8.1 | 3.6 | % | 906.8 | 33.0 | 4.8 | 37.8 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other |
222.3 | 15.4 | — | 15.4 | 6.9 | % | 228.8 | 16.0 | 0.1 | 16.1 | 7.0 | % | 238.0 | 26.1 | — | 26.1 | 11.0 | % | 272.6 | 34.0 | — | 34.0 | 12.5 | % | 961.7 | 91.5 | 0.1 | 91.6 | 9.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
— | (7.4 | ) | — | (7.4 | ) | — | (9.7 | ) | — | (9.7 | ) | — | (10.2 | ) | — | (10.2 | ) | — | (12.0 | ) | — | (12.0 | ) | — | (39.4 | ) | — | (39.4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment |
— | — | — | — | — | (25.1 | ) | 25.1 | — | — | (270.0 | ) | 270.0 | — | — | — | — | — | — | (295.0 | ) | 295.0 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring |
— | (21.2 | ) | 21.2 | — | — | (18.2 | ) | 18.2 | — | — | (0.4 | ) | 0.4 | — | — | (4.9 | ) | 4.9 | — | — | (44.7 | ) | 44.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
1,442.0 | 81.7 | 24.6 | 106.3 | 7.4 | % | 1,642.6 | 116.4 | 56.3 | 172.7 | 10.5 | % | 1,596.4 | (102.2 | ) | 270.4 | 168.2 | 10.5 | % | 1,724.5 | 193.9 | 4.9 | 198.8 | 11.5 | % | 6,405.5 | 289.9 | 356.0 | 646.0 | 10.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newell Cookware Europe |
28.7 | 0.1 | 0.4 | 0.5 | 1.7 | % | 24.6 | (8.5 | ) | 7.6 | (0.9 | ) | (3.7 | %) | 24.9 | (1.4 | ) | — | (1.4 | ) | (5.6 | %) | 38.7 | 3.7 | (0.7 | ) | 3.0 | 7.8 | % | 116.9 | (6.1 | ) | 7.3 | 1.2 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
1,470.7 | 81.8 | 25.0 | 106.8 | 7.3 | % | 1,667.2 | 107.9 | 63.9 | 171.8 | 10.3 | % | 1,621.3 | (103.6 | ) | 270.4 | 166.7 | 10.3 | % | 1,763.2 | 197.7 | 4.2 | 201.9 | 11.5 | % | 6,522.4 | 283.9 | 363.4 | 647.3 | 9.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2003 | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | Sales | Reported OI | Charges (1) | Ex. Charges OI | Margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cleaning & Organization |
$ | 416.4 | $ | 39.2 | 0.4 | $ | 39.7 | 9.5 | % | $ | 438.3 | $ | 18.3 | 0.1 | $ | 18.4 | 4.2 | % | $ | 453.3 | $ | 37.3 | 0.4 | $ | 37.7 | 8.3 | % | $ | 465.2 | $ | 7.4 | 1.3 | $ | 8.6 | 1.8 | % | 1,773.1 | 102.2 | 2.2 | 104.5 | 5.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office Products |
322.3 | 47.1 | 0.9 | 48.0 | 14.9 | % | 507.8 | 114.8 | 0.1 | 114.9 | 22.6 | % | 428.7 | 69.9 | 0.1 | 70.0 | 16.3 | % | 422.4 | 77.8 | 1.3 | 79.1 | 18.7 | % | 1,681.2 | 309.6 | 2.4 | 312.0 | 18.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tools & Hardware |
265.6 | 35.4 | 1.5 | 36.9 | 13.9 | % | 294.6 | 47.7 | 0.6 | 48.3 | 16.4 | % | 299.3 | 53.4 | 0.3 | 53.7 | 17.9 | % | 340.2 | 42.8 | (0.2 | ) | 42.6 | 12.5 | % | 1,199.7 | 179.3 | 2.2 | 181.5 | 15.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Fashions |
219.6 | 4.7 | 1.3 | 6.0 | 2.7 | % | 227.8 | 7.9 | 0.7 | 8.6 | 3.8 | % | 223.5 | 17.5 | 0.6 | 18.1 | 8.1 | % | 230.1 | 14.3 | 4.4 | 18.7 | 8.1 | % | 901.0 | 44.4 | 7.0 | 51.4 | 5.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other |
234.2 | 21.9 | 0.4 | 22.3 | 9.5 | % | 226.6 | 19.0 | (0.2 | ) | 18.8 | 8.3 | % | 232.7 | 29.6 | (0.2 | ) | 29.4 | 12.6 | % | 290.8 | 44.3 | 1.4 | 45.7 | 15.7 | % | 984.3 | 114.8 | 1.4 | 116.2 | 11.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
— | (7.2 | ) | — | (7.2 | ) | — | (6.3 | ) | — | (6.3 | ) | — | (10.9 | ) | — | (10.9 | ) | — | (5.9 | ) | — | (5.9 | ) | — | (30.3 | ) | — | (30.3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment |
— | — | — | — | — | — | — | — | — | — | — | — | — | (34.5 | ) | 34.5 | — | — | (34.5 | ) | 34.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring |
— | (19.3 | ) | 19.3 | — | — | (53.1 | ) | 53.1 | — | — | (41.8 | ) | 41.8 | — | — | (74.5 | ) | 74.5 | — | — | (188.7 | ) | 188.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing Operations |
1,458.1 | 121.8 | 23.8 | 145.6 | 10.0 | % | 1,695.1 | 148.3 | 54.5 | 202.8 | 12.0 | % | 1,637.5 | 155.0 | 43.0 | 198.0 | 12.1 | % | 1,748.7 | 71.6 | 117.4 | 189.0 | 10.8 | % | 6,539.3 | 496.8 | 238.6 | 735.4 | 11.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newell Cookware Europe |
28.4 | (3.5 | ) | 4.6 | 1.1 | 3.9 | % | 26.1 | 1.3 | 0.2 | 1.5 | 5.7 | % | 30.5 | 1.6 | — | 1.6 | 5.2 | % | 34.1 | 2.4 | (0.5 | ) | 1.9 | 5.6 | % | 119.1 | 1.8 | 4.3 | 6.1 | 5.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
1,486.5 | 118.3 | 28.4 | 146.7 | 9.9 | % | 1,721.2 | 149.6 | 54.6 | 204.3 | 11.9 | % | 1,668.0 | 156.6 | 43.0 | 199.6 | 12.0 | % | 1,782.8 | 74.0 | 116.8 | 190.8 | 10.7 | % | 6,658.4 | 498.5 | 242.9 | 741.4 | 11.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (1) | Charges are primarily related to restructuring, asset impairment, product lines exits, acquisitions and divestitures |
Newell Rubbermaid
Quarterly Income Statements
Restated to reflect Newell Cookware Europe as Discontinued Operations
October 27, 2005
Quarterly Income Statements
Restated to reflect Newell Cookware Europe as Discontinued Operations
October 27, 2005
On October 11, 2005, Newell Rubbermaid announced its intent to sell its Newell Cookware Europe business.
The schedule below shows the impact of this
business, which will be reported as discontinued operations, beginning in the fourth quarter 2005.
| 2005 | Q1 | Q2 | Q3 | |||||||||||||||||||||||||||||||||
| Charges | Excluding | Charges | Excluding | Charges | Excluding | |||||||||||||||||||||||||||||||
| Reported | (1) | Charges | Reported | (1) | Charges | Reported | (1) | Charges | ||||||||||||||||||||||||||||
Net Sales |
1,346.5 | — | 1,346.5 | 1,617.5 | — | 1,617.5 | 1,571.2 | — | 1,571.2 | |||||||||||||||||||||||||||
GROSS MARGIN |
370.7 | — | 370.7 | 504.0 | — | 504.0 | 498.0 | — | 498.0 | |||||||||||||||||||||||||||
SG&A |
(296.5 | ) | — | (296.5 | ) | (319.1 | ) | — | (319.1 | ) | (306.4 | ) | — | (306.4 | ) | |||||||||||||||||||||
Impairment |
— | — | — | — | — | — | (34.3 | ) | 34.3 | — | ||||||||||||||||||||||||||
Restructuring |
(5.9 | ) | — | (5.9 | ) | (0.7 | ) | — | (0.7 | ) | (14.6 | ) | — | (14.6 | ) | |||||||||||||||||||||
OPERATING INCOME |
68.3 | — | 68.3 | 184.2 | — | 184.2 | 142.7 | 34.3 | 177.0 | |||||||||||||||||||||||||||
Non-Operating Expense |
(28.5 | ) | — | (28.5 | ) | (32.9 | ) | — | (32.9 | ) | (33.7 | ) | — | (33.7 | ) | |||||||||||||||||||||
Income Taxes |
47.5 | — | 47.5 | (47.2 | ) | — | (47.2 | ) | (28.3 | ) | — | (28.3 | ) | |||||||||||||||||||||||
Income from Continuing Operations |
87.3 | — | 87.3 | 104.1 | — | 104.1 | 80.7 | 34.3 | 115.0 | |||||||||||||||||||||||||||
Discontinued Operations, net |
(50.8 | ) | 50.8 | — | (37.9 | ) | 37.9 | — | (9.2 | ) | 9.2 | — | ||||||||||||||||||||||||
NET INCOME |
36.5 | 50.8 | 87.3 | 66.2 | 37.9 | 104.1 | 71.5 | 43.5 | 115.0 | |||||||||||||||||||||||||||
EARNINGS PER SHARE FROM |
||||||||||||||||||||||||||||||||||||
CONTINUING OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Basic |
$ | 0.32 | $ | — | $ | 0.32 | $ | 0.38 | $ | — | $ | 0.38 | $ | 0.29 | $ | 0.13 | $ | 0.42 | ||||||||||||||||||
Diluted |
$ | 0.32 | $ | — | $ | 0.32 | $ | 0.38 | $ | — | $ | 0.38 | $ | 0.29 | $ | 0.12 | $ | 0.42 | ||||||||||||||||||
LOSS PER SHARE FROM |
||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS: |
||||||||||||||||||||||||||||||||||||
Basic |
$ | (0.19 | ) | $ | 0.19 | $ | — | $ | (0.14 | ) | $ | 0.14 | $ | — | $ | (0.03 | ) | $ | 0.03 | $ | — | |||||||||||||||
Diluted |
$ | (0.18 | ) | $ | 0.18 | $ | — | $ | (0.14 | ) | $ | 0.14 | $ | — | $ | (0.03 | ) | $ | 0.03 | $ | — | |||||||||||||||
EARNINGS PER SHARE: |
||||||||||||||||||||||||||||||||||||
Basic |
$ | 0.13 | $ | 0.19 | $ | 0.32 | $ | 0.24 | $ | 0.14 | $ | 0.38 | $ | 0.26 | $ | 0.16 | $ | 0.42 | ||||||||||||||||||
Diluted |
$ | 0.13 | $ | 0.18 | $ | 0.32 | $ | 0.24 | $ | 0.14 | $ | 0.38 | $ | 0.26 | $ | 0.16 | $ | 0.42 | ||||||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||||||||||
Basic |
274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | |||||||||||||||||||||||||||
Diluted |
274.9 | 274.9 | 274.9 | 274.7 | 274.7 | 274.7 | 275.0 | 275.0 | 275.0 | |||||||||||||||||||||||||||
| (1) | Charges are related to asset impairment and divestitures. |
Newell Rubbermaid
Quarterly Income Statements
Restated to reflect Newell Cookware Europe as Discontinued Operations
October 27, 2005
Quarterly Income Statements
Restated to reflect Newell Cookware Europe as Discontinued Operations
October 27, 2005
On October 11, 2005, Newell Rubbermaid announced its intent to sell its Newell Cookware Europe business. The schedule below shows the impact of this
business, which will be reported as discontinued operations, beginning in the fourth quarter 2005.
| 2004 | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charges | Excluding | Charges | Excluding | Charges | Excluding | Charges | Excluding | Charges | Excluding | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | (1) | Charges | Reported | (1) | Charges | Reported | (1) | Charges | Reported | (1) | Charges | Reported | (1) | Charges | ||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
1,442.0 | — | 1,442.0 | 1,642.6 | — | 1,642.6 | 1,596.4 | — | 1,596.4 | 1,724.5 | — | 1,724.5 | 6,405.5 | — | 6,405.5 | |||||||||||||||||||||||||||||||||||||||||||||
GROSS MARGIN |
394.6 | 3.2 | 397.8 | 471.6 | 11.4 | 483.0 | 459.3 | — | 459.3 | 508.1 | — | 508.1 | 1,833.5 | 14.7 | 1,848.2 | |||||||||||||||||||||||||||||||||||||||||||||
SG&A |
(291.7 | ) | 0.2 | (291.5 | ) | (311.9 | ) | 1.5 | (310.4 | ) | (291.1 | ) | — | (291.1 | ) | (309.3 | ) | — | (309.3 | ) | (1,203.9 | ) | 1.6 | (1,202.3 | ) | |||||||||||||||||||||||||||||||||||
Impairment |
— | — | — | (25.1 | ) | 25.1 | — | (270.0 | ) | 270.0 | — | — | — | — | (295.0 | ) | 295.0 | — | ||||||||||||||||||||||||||||||||||||||||||
Restructuring |
(21.2 | ) | 21.2 | — | (18.2 | ) | 18.2 | — | (0.4 | ) | 0.4 | — | (4.9 | ) | 4.9 | — | (44.7 | ) | 44.7 | — | ||||||||||||||||||||||||||||||||||||||||
OPERATING INCOME |
81.7 | 24.6 | 106.3 | 116.4 | 56.3 | 172.7 | (102.2 | ) | 270.4 | 168.2 | 193.9 | 4.9 | 198.8 | 289.9 | 356.0 | 646.0 | ||||||||||||||||||||||||||||||||||||||||||||
Non Operating Expense |
(33.2 | ) | (0.4 | ) | (33.6 | ) | (31.2 | ) | (0.1 | ) | (31.3 | ) | (29.2 | ) | 1.0 | (28.2 | ) | (22.6 | ) | 0.7 | (21.9 | ) | (116.1 | ) | 1.2 | (114.9 | ) | |||||||||||||||||||||||||||||||||
Income Taxes |
(16.5 | ) | (8.5 | ) | (25.0 | ) | (18.2 | ) | (17.6 | ) | (35.8 | ) | (22.9 | ) | (16.0 | ) | (38.9 | ) | (46.5 | ) | (1.3 | ) | (47.8 | ) | (104.1 | ) | (43.4 | ) | (147.5 | ) | ||||||||||||||||||||||||||||||
Income from Continuing Operations |
32.0 | 15.7 | 47.7 | 67.0 | 38.6 | 105.6 | (154.3 | ) | 255.4 | 101.1 | 124.8 | 4.3 | 129.1 | 69.7 | 313.8 | 383.6 | ||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations |
(106.9 | ) | 106.9 | — | (6.0 | ) | 6.0 | — | (72.1 | ) | 72.1 | — | (0.8 | ) | 0.8 | — | (185.8 | ) | 185.8 | — | ||||||||||||||||||||||||||||||||||||||||
NET (LOSS) INCOME |
(74.9 | ) | 122.6 | 47.7 | 61.0 | 44.6 | 105.6 | (226.4 | ) | 327.5 | 101.1 | 124.1 | 5.0 | 129.1 | (116.1 | ) | 499.7 | 383.6 | ||||||||||||||||||||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE FROM
CONTINUING OPERATIONS: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
$ | 0.12 | $ | 0.06 | $ | 0.17 | $ | 0.24 | $ | 0.14 | $ | 0.38 | $ | (0.56 | ) | $ | 0.93 | $ | 0.37 | $ | 0.45 | $ | 0.02 | $ | 0.47 | $ | 0.25 | $ | 1.14 | $ | 1.40 | |||||||||||||||||||||||||||||
Diluted |
$ | 0.12 | $ | 0.06 | $ | 0.17 | $ | 0.24 | $ | 0.14 | $ | 0.38 | $ | (0.56 | ) | $ | 0.93 | $ | 0.37 | $ | 0.45 | $ | 0.02 | $ | 0.47 | $ | 0.25 | $ | 1.14 | $ | 1.40 | |||||||||||||||||||||||||||||
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
$ | (0.39 | ) | $ | 0.39 | $ | — | $ | (0.02 | ) | $ | 0.02 | $ | — | $ | (0.26 | ) | $ | 0.26 | $ | — | $ | (0.00 | ) | $ | 0.00 | $ | — | $ | (0.68 | ) | $ | 0.68 | $ | — | |||||||||||||||||||||||||
Diluted |
$ | (0.39 | ) | $ | 0.39 | $ | — | $ | (0.02 | ) | $ | 0.02 | $ | — | $ | (0.26 | ) | $ | 0.26 | $ | — | $ | (0.00 | ) | $ | 0.00 | $ | — | $ | (0.68 | ) | $ | 0.68 | $ | — | |||||||||||||||||||||||||
(LOSS) EARNINGS PER SHARE: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
$ | (0.27 | ) | $ | 0.45 | $ | 0.17 | $ | 0.22 | $ | 0.16 | $ | 0.38 | $ | (0.83 | ) | $ | 1.19 | $ | 0.37 | $ | 0.45 | $ | 0.02 | $ | 0.47 | $ | (0.42 | ) | $ | 1.82 | $ | 1.40 | |||||||||||||||||||||||||||
Diluted |
$ | (0.27 | ) | $ | 0.45 | $ | 0.17 | $ | 0.22 | $ | 0.16 | $ | 0.38 | $ | (0.83 | ) | $ | 1.19 | $ | 0.37 | $ | 0.45 | $ | 0.02 | $ | 0.47 | $ | (0.42 | ) | $ | 1.82 | $ | 1.40 | |||||||||||||||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted |
274.5 | 274.5 | 274.5 | 274.5 | 274.5 | 274.5 | 274.4 | 274.4 | 274.4 | 283.5 | 283.5 | 283.5 | 274.4 | 274.4 | 274.4 | |||||||||||||||||||||||||||||||||||||||||||||
| (1) | Charges are primarily related to restructuring, asset impairment, product lines exits, acquisitions and divestitures |
Newell Rubbermaid
Quarterly Income Statements
Restated to reflect Newell Cookware Europe as Discontinued Operations
October 27, 2005
Quarterly Income Statements
Restated to reflect Newell Cookware Europe as Discontinued Operations
October 27, 2005
On October 11, 2005, Newell Rubbermaid announced its intent to sell its Newell Cookware Europe business. The schedule below shows the impact of this
business, which will be reported as discontinued operations, beginning in the fourth quarter 2005.
| 2003 | Q1 | Q2 | Q3 | Q4 | Full Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charges | Excluding | Charges | Excluding | Charges | Excluding | Charges | Excluding | Charges | Excluding | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | (1) | Charges | Reported | (1) | Charges | Reported | (1) | Charges | Reported | (1) | Charges | Reported | (1) | Charges | ||||||||||||||||||||||||||||||||||||||||||||||
Net Sales |
1,458.1 | — | 1,458.1 | 1,695.1 | — | 1,695.1 | 1,637.5 | — | 1,637.5 | 1,748.7 | — | 1,748.7 | 6,539.3 | — | 6,539.3 | |||||||||||||||||||||||||||||||||||||||||||||
GROSS MARGIN |
413.5 | 4.1 | 417.6 | 508.3 | 1.3 | 509.6 | 474.8 | 1.2 | 476.0 | 479.0 | 7.1 | 486.1 | 1,875.6 | 13.7 | 1,889.3 | |||||||||||||||||||||||||||||||||||||||||||||
SG&A |
(272.5 | ) | 0.4 | (272.1 | ) | (306.8 | ) | — | (306.8 | ) | (278.0 | ) | — | (278.0 | ) | (298.4 | ) | 1.3 | (297.1 | ) | (1,155.6 | ) | 1.8 | (1,153.9 | ) | |||||||||||||||||||||||||||||||||||
Impairment |
— | — | — | — | — | — | — | — | — | (34.5 | ) | 34.5 | — | (34.5 | ) | 34.5 | — | |||||||||||||||||||||||||||||||||||||||||||
Restructuring |
(19.3 | ) | 19.3 | — | (53.1 | ) | 53.1 | — | (41.8 | ) | 41.8 | — | (74.5 | ) | 74.5 | — | (188.7 | ) | 188.7 | — | ||||||||||||||||||||||||||||||||||||||||
OPERATING INCOME |
121.8 | 23.8 | 145.6 | 148.3 | 54.5 | 202.8 | 155.0 | 43.0 | 198.0 | 71.6 | 117.4 | 189.0 | 496.8 | 238.6 | 735.4 | |||||||||||||||||||||||||||||||||||||||||||||
Non Operating Expense |
(57.4 | ) | 21.1 | (36.3 | ) | (31.3 | ) | — | (31.3 | ) | (34.7 | ) | — | (34.7 | ) | (36.6 | ) | 9.2 | (27.4 | ) | (159.9 | ) | 30.3 | (129.6 | ) | |||||||||||||||||||||||||||||||||||
Income Taxes |
(19.6 | ) | (16.2 | ) | (35.8 | ) | (39.0 | ) | (17.8 | ) | (56.8 | ) | (37.5 | ) | (14.2 | ) | (51.7 | ) | (23.8 | ) | (25.7 | ) | (49.5 | ) | (119.9 | ) | (73.9 | ) | (193.8 | ) | ||||||||||||||||||||||||||||||
Income from Continuing Operations |
44.8 | 28.7 | 73.5 | 78.0 | 36.7 | 114.7 | 82.8 | 28.8 | 111.6 | 11.2 | 100.9 | 112.1 | 217.0 | 195.0 | 412.0 | |||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations |
(28.8 | ) | 28.8 | — | (4.2 | ) | 4.2 | — | (7.6 | ) | 7.6 | — | (222.8 | ) | 222.8 | — | (263.6 | ) | 263.6 | — | ||||||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) |
16.0 | 57.5 | 73.5 | 73.8 | 40.9 | 114.7 | 75.2 | 36.4 | 111.6 | (211.6 | ) | 323.7 | 112.1 | (46.6 | ) | 458.6 | 412.0 | |||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE FROM
CONTINUING OPERATIONS: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
$ | 0.16 | $ | 0.10 | $ | 0.27 | $ | 0.28 | $ | 0.13 | $ | 0.42 | $ | 0.30 | $ | 0.10 | $ | 0.41 | $ | 0.04 | $ | 0.37 | $ | 0.41 | $ | 0.79 | $ | 0.71 | $ | 1.50 | ||||||||||||||||||||||||||||||
Diluted |
$ | 0.16 | $ | 0.10 | $ | 0.27 | $ | 0.28 | $ | 0.13 | $ | 0.42 | $ | 0.30 | $ | 0.10 | $ | 0.41 | $ | 0.04 | $ | 0.37 | $ | 0.41 | $ | 0.79 | $ | 0.71 | $ | 1.50 | ||||||||||||||||||||||||||||||
LOSS PER SHARE FROM
DISCONTINUED OPERATIONS: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
$ | (0.11 | ) | $ | 0.11 | $ | — | $ | (0.02 | ) | $ | 0.02 | $ | — | $ | (0.03 | ) | $ | 0.03 | $ | — | $ | (0.81 | ) | $ | 0.81 | $ | — | $ | (0.96 | ) | $ | 0.96 | $ | — | |||||||||||||||||||||||||
Diluted |
$ | (0.11 | ) | $ | 0.11 | $ | — | $ | (0.02 | ) | $ | 0.02 | $ | — | $ | (0.03 | ) | $ | 0.03 | $ | — | $ | (0.81 | ) | $ | 0.81 | $ | — | $ | (0.96 | ) | $ | 0.96 | $ | — | |||||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
$ | 0.06 | $ | 0.21 | $ | 0.27 | $ | 0.27 | $ | 0.15 | $ | 0.42 | $ | 0.27 | $ | 0.13 | $ | 0.41 | $ | (0.77 | ) | $ | 1.18 | $ | 0.41 | $ | (0.17 | ) | $ | 1.67 | $ | 1.50 | ||||||||||||||||||||||||||||
Diluted |
$ | 0.06 | $ | 0.21 | $ | 0.27 | $ | 0.27 | $ | 0.15 | $ | 0.42 | $ | 0.27 | $ | 0.13 | $ | 0.41 | $ | (0.77 | ) | $ | 1.18 | $ | 0.41 | $ | (0.17 | ) | $ | 1.67 | $ | 1.50 | ||||||||||||||||||||||||||||
Average shares outstanding: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic |
273.6 | 273.6 | 273.6 | 274.2 | 274.2 | 274.2 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.1 | 274.1 | 274.1 | |||||||||||||||||||||||||||||||||||||||||||||
Diluted |
274.0 | 274.0 | 274.0 | 274.7 | 274.7 | 274.7 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.4 | 274.1 | 274.1 | 274.1 | |||||||||||||||||||||||||||||||||||||||||||||
| (1) | Charges are primarily related to restructuring, asset impairment, product lines exits, acquisitions and divestitures |