Newell Rubbermaid Inc. Provides Additional Detail to Last Friday's Announcement
FREEPORT, Ill., Sept. 7 /PRNewswire/ -- On Friday, September 3, Newell Rubbermaid Inc. (NYSE: NWL; CHX) lowered its third quarter and full year 1999 earnings per share estimates to $0.43 - $0.47 and $1.65 - $1.75, respectively, due to retail demand sluggishness across its business segments.
While sales are running below plan in the third quarter, we still anticipate internal sales growth of 1-2% for the quarter, driven by the continued growth at our Mirro, Calphalon and Sanford divisions.
Because of the autonomous manner in which our divisions operate, they have been able to react quickly and specifically to the first signs of softer sales, cutting discretionary spending and developing plans to drive sales volume in order to minimize the negative impact of the sales trends.
The Rubbermaid integration remains on plan. Unforecasted promotional commitments made by previous management have run their course and will not be repeated. The systems conversion plan remains on schedule and to date, all major conversions have been completed. The plan to improve operational and distribution efficiencies also remains on schedule. Recent steps taken include the announced expansion of the Goodyear (Arizona), Centerville (Iowa) and Mississauga (Ontario, Canada) facilities. Customer service levels have improved dramatically from an estimated 75%-80% at the date of acquisition, and are now consistently in the nineties.
In addition, we continue to expect the Rotring and Newell Window Fashions Europe acquisitions to be accretive to earnings in the second half of 1999.
This press release may contain forward-looking information. Forward-looking statements are not guarantees since there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied in the forward-looking statements. For a list of major factors that could cause actual results to differ materially from those projected, please refer to the Newell Rubbermaid's Second Quarter 1999 Form 10Q, exhibit 99, filed with the Securities and Exchange Commission.
Based in Freeport, Illinois, Newell Rubbermaid Inc. is a multi-national manufacturer and marketer of high-volume, branded, staple consumer products with restated 1998 sales of $6.2 billion. Newell Rubbermaid products are sold through a variety of retail and wholesale distribution channels in the following business segments: Household Products, including Mirro© and Calphalon© cookware, Rubbermaid© and Curver© home products, Little Tikes©, Graco© and Century© infant and juvenile products, Anchor Hocking© glassware and Goody© hair accessories; Hardware and Home Furnishings, including Levolor©, Kirsch© and Newell© window treatments, Amerock©, EZ Paintr©, BernzOmatic© and Bulldog© hardware and tools, Intercraft© and Burnes© picture frames, Holson© Photo Albums and Lee Rowan© home storage products; and Office Products, including Sanford©, Berol©, Sharpie© and Rotring© writing instruments and Rolodex© and Eldon© office storage and organization products.
SOURCE: Newell Rubbermaid Inc.
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