Newell Brands (NYSE: NWL) announced it will reaffirm its fiscal
year 2017 outlook, as provided in its first quarter 2017 earnings
press release dated May 8, 2017, during its presentation tomorrow
at the Deutsche Bank Global Consumer Conference in Paris,
France.
The company is reaffirming its full year 2017 guidance as
follows:
2017 Full Year
Outlook
Net sales
$14.52bn to $14.72bn
Net sales growth
9.5% to 11.0%
Core sales growth
2.5% to 4.0%
Normalized earnings per share
$3.00 to $3.20
Chief Executive Officer Michael Polk will present tomorrow, June
15, 2017 at 8:00 a.m. EDT (2:00 p.m. CEST). The presentation will
be webcast live and may be accessed by selecting Events &
Presentations from the Investor Relations tab of the Newell Brands
website at www.newellbrands.com. The webcast will be archived and
available for replay following the live presentation.
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), 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 Core Sales
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% Less: Pre-closing
Jarden sales included in pro forma base [1] -18.1% Add: Unfavorable
foreign exchange 1.5% to 2.0% Add: Divestitures, net of
acquisitions [2] 9.6% to
9.1% Core Sales Growth, Adjusted Pro Forma 2.5% to 4.0%
[1] Adjusted pro forma reflects Jarden sales from January 1,
2016 to April 15, 2016.
[2] Acquisitions exclude net sales until the one year
anniversary of their respective dates of acquisition, and are
comprised of Sistema, Smith Mountain Industries, GUD, Bond, and
Touch Industries. Divestitures include both actual and planned
divestitures comprised of the Levolor and Kirsch window coverings
brands ("Décor"),which the Company divested in June 2016, the Tools
(excluding Dymo® industrial labeling) and Rubbermaid® Consumer
Storage businesses, which the Company divested in March 2017; and
the Lehigh, Fire Building and Teutonia businesses, which the
Company completed in the second quarter 2017; as well as the
planned divestitures of businesses currently held for sale
including two winter sports units, V�lkl® and K2®, and the
Humidifiers and Fans business, and the planned exit of a
distribution agreement with Sprue Aegis.
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 measures 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
Statements in this press release that are not historical in
nature constitute forward-looking statements. These forward-looking
statements relate to information or assumptions about the effects
of sales, income, earnings per share, operating income, operating
margin or gross margin improvements or declines, Project Renewal,
capital and other expenditures, cash flow, dividends, restructuring
and other project costs, costs and cost savings, inflation or
deflation, particularly with respect to commodities such as oil and
resin, debt ratings, changes in exchange rates, expected benefits
and financial results from the Jarden acquisition and other
recently completed acquisitions and related integration activities
and planned divestitures and management's plans, projections and
objectives for future operations and performance. These statements
are accompanied by words such as "anticipate," "expect," "project,"
"will," "believe," "estimate" and similar expressions. 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, our
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 our customers; our ability to improve
productivity, reduce complexity and streamline operations; our
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 we have
incurred in connection with the Jarden acquisition; risks related
to a potential increase in interest rates; our 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 our ability to obtain raw
materials and sourced products in a timely manner from suppliers;
the risks inherent in our foreign operations, including currency
fluctuations, exchange controls and pricing restrictions; a failure
of one of our key information technology systems or related
controls; future events that could adversely affect the value of
our assets and require impairment charges; United States and
foreign regulatory impact on our operations including environmental
remediation costs; the potential inability to attract, retain and
motivate key employees; the imposition of tax liabilities greater
than our provisions for such matters; product liability, product
recalls or regulatory actions; our ability to protect its
intellectual property rights; changes to our credit ratings;
significant increases in the funding obligations related to our
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 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170614005092/en/
Newell BrandsInvestors:Nancy O’Donnell, +1-770-418-7723Vice
President, Investor
Relationsnancy.odonnell@newellco.comorMedia:Jason Anthoine, APR,
+1-201-610-6768Vice President, Corporate
Communicationsjason.anthoine@newellco.comorWeber ShandwickLiz
Cohen, +1-212-445-8044liz.cohen@webershandwick.com
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