Wednesday May 3, 11:26 am Eastern Time
Newell Rubbermaid profits rise, match estimates
FREEPORT, Ill., May 3 (Reuters) - Housewares maker Newell Rubbermaid Inc. (NYSE:NWL - news) said on Wednesday its net income rose slightly in the first quarter, matching Wall Street estimates, and the company repeated its forecast of higher full-year earnings.
First-quarter earnings were $76.7 million, or 28 cents per diluted share, versus $75 million, or 27 cents per share, a year earlier, excluding restructuring charges related to the Rubbermaid merger in 1999.
Analysts' consensus earnings estimate was 28 cents a share, according to First Call/Thomson Financial.
The company reiterated its full-year earnings forecast of $2 to $2.10 per share. Analysts expect $1.99, according to First Call.
Shares of Newell Rubbermaid were up 1-1/4 at 25-7/8 in morning trade on the New York Stock Exchange.
The company said that during the first quarter it achieved $31 million, or 7 cents a share, in operating income improvements at the Rubbermaid divisions as a result of cost savings and synergies. It said this was partially offset by higher raw materials costs and negative foreign currency translations whose overall impact was $23.8 million, or 5 cents a share.
Net sales were a record $1.55 billion, up 2.3 percent from $1.52 billion a year earlier. Excluding the negative currency impact and product line changes at Rubbermaid Home Products, net sales rose 6 percent.
Including restructuring charges, net income in the first quarter was $76.2 million, compared with a net loss of $79 million a year ago.
John McDonough, Newell Rubbermaid vice chairman and chief executive, said above-plan performances, particularly in the Amerock and BernzOmatic hardware lines, Graco infant items, Newell office products and Rubbermaid commercial products divisions, and cost savings at Little Tikes, Rubbermaid Europe and Rubbermaid home products helped first-quarter results.
``While we were disappointed with lower-than-expected sales volume at Rubbermaid Home Products, and higher than originally anticipated raw material costs, we expect the strength we are seeing in many of our businesses to offset these issues going forward,'' McDonough said.
In the first quarter, the company recorded a planned pre-tax restructuring charge of $800,000 related to facility closures.
During the quarter, the company repurchased 15.5 million shares of its common stock at an average price of $26 per share, or a total of $402.2 million. The repurchases had no appreciable effect on earnings per share, it said.
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