Newell Rubbermaid to Sell Hardware, Teaching Aid Units (NWL)
Newell Rubbermaid (NYSE: NWL), which held its conference call on Friday, said to analysts that it intends to sell its hardware and teaching aid units; however, the Company maintained its earnings guidance for the full-year fiscal. Sales of these units would weigh both on bottom line and the top line.
The Company said that it plans to sell brands such as Shurline painting products and Bulldog picture hanging hooks. Earlier on April 26, the Company reported that fiscal first quarter profit slumped 32% due to several charges it booked, including restructuring costs.
Still, non-GAAP earnings edged past Street’s consensus estimate. Organic sales growth also rose a tad.
For the fiscal first quarter, the Atlanta, Georgia-based Company posted a net income of $54.2 million or 19 cents a share compared to a net income of $79.3 million or 27 cents a share, in the year-earlier quarter.
In the recently concluded quarter, the Company took charges linked to restructuring, a loss arising from a business discontinuation and currency devaluation in Venezuela.
Excluding onetime items, adjusted/non-GAAP earnings came at 35 cents a share up from 32 cents a share, in the same quarter of last year.
Sales for the quarter (excluding sales from discontinued operations) fell 0.8% to $1.24 billion. Sales on constant currency basis edged up though, driven by baby and parenting business which saw sales growth of 6.4% while sales of commercial products rose 4.95.
Analysts polled by Thomson Reuters were expecting earnings of 32 cents a share on sales of $1.32 billion but the sales estimate included revenue from operations that were discontinued.
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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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