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Newell Rubbermaid – NWL – Reports Solid Q2 2012 Results and Reaffirms Full Year Guidance

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Newell Rubbermaid (NYSE: NWL) announced solid second quarter 2012 results and reaffirmed full-year core sales, normalized operating margin, normalized EPS and operating cash flow guidance.

“Our solid second quarter results build on the momentum established in the first quarter, resulting in a good first half of 2012. During the first half, we reported 2.5 percent core sales growth, normalized operating margin expansion of 20 basis points, and normalized earnings per share increase of 8.1 percent,” said Michael Polk, Newell Rubbermaid’s President and CEO. “This performance was driven by strong core sales growth in our Professional and Baby & Parenting segments and double-digit core sales growth in emerging markets. We generated over $70 million more operating cash flow in the first half of 2012 than prior year, continued to improve our capital structure by initiating the refinancing of $437 million of convertible securities on more favorable terms, and returned $95 million to our shareholders in the form of dividends and share repurchases. We’re encouraged by the first half results, and we believe our portfolio is well positioned to meet our financial and strategic goals for the year.”

NWL – Second Quarter Executive Summary


  • Second quarter 2012 net sales were $1.52 billion, a decrease of 1.9 percent versus prior year results. Core sales, which exclude the impact of changes in foreign currency translation, grew by 0.4 percent. Adjusted for an estimated timing shift in customer orders from the second quarter to the first quarter related to the company’s European SAP conversion, core sales in the quarter rose 2.3 percent over the year-ago quarter. Net sales for the first six months were $2.85 billion, an increase of 1.0 percent versus prior year first half results.
  • Normalized diluted earnings per share were $0.47 compared with $0.45 in the prior year period; reported diluted earnings per share were $0.38 compared with $0.49 in the year-ago period.
  • Operating cash flow in the quarter was $103.1 million, an improvement of $10.3 million compared with the year-ago period.
  • During the quarter, the company issued $500 million of medium term notes in two tranches of $250 million, with 3 and 10 year maturities. Subsequent to quarter end, the proceeds were used to redeem $437 million in outstanding junior convertible subordinated debentures resulting in annualized interest expense savings of approximately $0.02 per diluted share.
  • The company paid $24.9 million to repurchase 1.4 million shares under its authorized $300 million share repurchase plan.
  • NWL reaffirmed its 2012 guidance for core sales growth in a range from 2 to 3 percent, normalized operating margin improvement of up to 20 basis points, normalized diluted earnings per share growth of about 3 to 6 percent, or $1.63 to $1.69, and operating cash flow of $550 to $600 million.

About Newell Rubbermaid – NWL

Newell Rubbermaid Inc. (NWL), an S&P 500 company, is a global marketer of consumer and commercial products with 2011 sales of approximately $5.9 billion and a strong portfolio of leading brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Rubbermaid Commercial Products® and Aprica®.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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