Newell Brands Inc. (NYSE:NWL) today announced it will reaffirm
its fiscal year 2017 outlook, as provided in its fourth quarter
2016 earnings press release dated February 6, 2017, during its
presentation today at the Consumer Analyst Group of New York
(CAGNY) conference.
The company's guidance and key assumptions for the full year
2017 are as follows:
2017 Full Year
Outlook
Net sales
$14.52B to $14.72B
Core sales growth
2.5% to 4.0%
Normalized earnings per share
$2.95 to $3.15
Chief Executive Officer Michael Polk will present today at 10:45
a.m. ET. The presentation will be webcast live and may be accessed
through Events & Presentations in the Investor Relations
section of the Newell Brands website at www.newellbrands.com. The
webcast will be archived and available for replay.
About Newell Brands
Newell Brands (NYSE: NWL) is a leading global consumer goods
company with a strong portfolio of well-known brands, including
Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®,
Jostens®, Marmot®, Rawlings®, Oster®, Sunbeam®, FoodSaver®, Mr.
Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®,
NUK®, Calphalon®, Rubbermaid®, Contigo®, First Alert®, Waddington
and Yankee Candle®. For hundreds of millions of consumers, Newell
Brands makes life better every day, where they live, learn, work
and play.
This press release and additional information about Newell
Brands are available on the company’s website,
www.newellbrands.com.
Non-GAAP Financial
Measures
This release contains non-GAAP financial measures within the
meaning of Regulation G promulgated by the Securities and Exchange
Commission and includes a reconciliation of these non-GAAP
financial measures to the most directly comparable financial
measures calculated in accordance with GAAP.
The company uses certain non-GAAP financial measures that are
included in this press release and the additional financial
information both in explaining 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
non-GAAP financial measures and the information they provide are
useful to investors since these measures (a) permit investors to
view the company’s performance using the same tools that management
uses to evaluate the company’s past performance, reportable
business segments and prospects for future performance and (b)
determine certain elements of management’s incentive
compensation.
The company’s management believes that core sales provides a
more complete understanding of underlying sales trends by providing
sales on a consistent basis as it excludes the impacts of
acquisitions (other than the Jarden acquisition, which is included
in core sales on a pro forma basis starting in the second quarter
of 2016), planned or completed divestitures, the deconsolidation of
the company’s Venezuelan operations and changes in foreign currency
from year-over-year comparisons. As reflected in the Currency
Analysis, the effect of foreign currency on reported sales is
determined by applying a fixed exchange rate, calculated as the
12-month average in the prior year, to the current and prior year
local currency sales amounts (excluding acquisitions and
divestitures), with the difference in these two amounts being the
increase or decrease in core sales, and the difference between the
change in as reported sales and the change in constant currency
sales reported as the currency impact. The company’s management
believes that “normalized” gross margin, “normalized” SG&A
expense, “normalized” operating income, “normalized” earnings per
share, “normalized” interest and “normalized” tax rates, which
exclude restructuring and other expenses and one-time and other
events such as costs related to certain product recalls, the
extinguishment of debt, certain tax benefits and charges,
impairment charges, pension settlement charges, discontinued
operations, costs related to the acquisition, integration and
financing of acquired businesses, amortization of intangible assets
associated with acquisitions (beginning in the second quarter of
2016), advisory costs for process transformation and optimization
initiatives, costs of personnel dedicated to integration activities
and transformation initiatives under Project Renewal and certain
other items, are useful because they provide investors with a
meaningful perspective on the current underlying performance of the
company’s core ongoing operations.
The company determines the tax effect of the items excluded from
normalized diluted earnings per share by applying the estimated
effective rate for the applicable jurisdiction in which the pre-tax
items were incurred, and for which realization of the resulting tax
benefit, if any, is expected. In situations in which an item
excluded from normalized results impacts income tax expense, the
company uses a “with” and “without” approach to determine
normalized income tax expense.
While the company believes that these non-GAAP financial
measures are useful in evaluating the company’s performance, 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.
Reconciliation of Non-GAAP Financial
Measures
Reconciliation of the 2017 core sales growth outlook is as
follows:
Year Ending
December 31, 2017
Estimated net sales growth (GAAP) 9.5% to 11.0% Foreign currency
1.5% to 2.5% Acquisitions, net of divestitures (1)
(7.5%) to
(10.5%)
Core Sales Growth, Adjusted Pro Forma 2.5% to 4.0%
(1) Acquisitions, net of divestitures
represents estimated sales until the one year anniversary of their
respective dates of acquisition, net of the impacts of actual
divestitures and the planned divestitures of assets held for sale
businesses.
As of April 15, 2016, Newell Brands core sales include pro forma
core sales associated with the Jarden transaction as if the
combination occurred April 15, 2015. Core sales exclude the impact
of foreign currency, acquisitions (other than the Jarden
acquisition) until their first anniversary, and planned and
completed divestitures. Beginning with the second quarter of 2016,
the company is excluding the amortization of intangible assets
associated with acquisitions from its calculation of normalized
earnings per share.
The company has presented forward-looking statements regarding
normalized earnings per share for 2017, which is a non-GAAP
financial measure. This non–GAAP financial measure is derived by
excluding certain amounts, expenses or income from the
corresponding financial measure determined in accordance with GAAP.
The determination of the amounts that are excluded from this
non-GAAP financial measure is a matter of management judgment and
depends upon, among other factors, the nature of the underlying
expense or income amounts recognized in a given period. We are
unable to present a quantitative reconciliation of the
aforementioned forward-looking non-GAAP financial measure to its
most directly comparable forward-looking GAAP financial measure
because such information is not available and management cannot
reliably predict all of the necessary components of such GAAP
measure without unreasonable effort or expense. The unavailable
information could have a significant impact on the company's
full-year 2017 GAAP financial results.
Caution Concerning Forward-Looking
Statements
Forward-looking statements in this press release are made in
reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements may
relate to, but are not limited to, information or assumptions about
the effects of sales (including pricing), income/(loss), earnings
per share, return on equity, return on invested capital, operating
income, operating margin or gross margin improvements or declines,
Project Renewal, capital and other expenditures, working capital,
cash flow, dividends, capital structure, debt to capitalization
ratios, debt ratings, availability of financing, interest rates,
restructuring and other project costs, impairment and other
charges, potential losses on divestitures, impacts of changes in
accounting standards, pending legal proceedings and claims
(including environmental matters), future economic performance,
costs and cost savings, inflation or deflation with respect to raw
materials and sourced products, productivity and streamlining,
changes in foreign exchange rates, product recalls, expected
benefits and synergies and financial results from recently
completed acquisitions and planned acquisitions and divestitures
and management’s plans, goals and objectives for future operations,
performance and growth or the assumptions relating to any of the
forward-looking statements. These statements generally are
accompanied by words such as “intend,” “anticipate,” “believe,”
“estimate,” “project,” “target,” “plan,” “expect,” “will,”
“should,” “would” or similar statements. The Company cautions that
forward-looking statements are not guarantees because there are
inherent difficulties in predicting future results. 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, the
Company’s dependence on the strength of retail, commercial and
industrial sectors of the economy in light of the continuation of
challenging economic conditions, particularly outside of the United
States; competition with other manufacturers and distributors of
consumer products; major retailers’ strong bargaining power and
consolidation of the Company’s customers; the Company’s ability to
improve productivity, reduce complexity and streamline operations;
the Company’s ability to develop innovative new products and to
develop, maintain and strengthen its end-user brands, including the
ability to realize anticipated benefits of increased advertising
and promotion spend; risks related to the substantial indebtedness
that the Company incurred in connection with the Jarden
Acquisition; risks related to a potential increase in interest
rates; the Company’s ability to complete planned acquisitions and
divestitures; difficulties integrating Jarden and other
acquisitions and unexpected costs or expenses associated with
acquisitions; changes in the prices of raw materials and sourced
products and the Company’s ability to obtain raw materials and
sourced products in a timely manner from suppliers; the risks
inherent in the Company’s foreign operations, including currency
fluctuations, exchange controls and pricing restrictions; a failure
of one of the Company’s key information technology systems or
related controls; future events that could adversely affect the
value of the Company’s assets and require impairment charges;
United States and foreign regulatory impact on the Company’s
operations including environmental remediation costs; the potential
inability to attract, retain and motivate key employees; the
imposition of tax liabilities greater than the Company’s provisions
for such matters; product liability, product recalls or regulatory
actions; the Company’s ability to protect its intellectual property
rights; changes to the Company’s credit ratings; significant
increases in the funding obligations related to the Company’s
pension plans due to declining asset values, declining interest
rates or otherwise; and those factors listed in our filings with
the Securities and Exchange Commission (including the information
set forth under the caption “Risk Factors” in the Company’s and
Jarden Corporation’s Annual Report on Form 10-K). Changes in such
assumptions or factors could produce significantly different
results. The information contained in this news release is as of
the date indicated. The company assumes no obligation to update any
forward-looking statements contained in this news release as a
result of new information or future events or developments. In
addition, there can be no assurance that the Company has correctly
identified and assessed all of the factors affecting the Company or
that the publicly available and other information the Company
receives with respect to these factors is complete or correct.
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version on businesswire.com: http://www.businesswire.com/news/home/20170224005160/en/
Newell Brands Inc.Investors:Nancy
O’Donnell, +1-770-418-7723Vice President, Investor
Relationsnancy.odonnell@newellco.comorMedia:Jason
Anthoine, +1-201-610-6768Global
Communicationsjason.anthoine@newellco.comorWeber ShandwickLiz
Cohen, +1-212-445-8044liz.cohen@webershandwick.com
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