DOW JONES NEWSWIRES
Newell Rubbermaid Inc.'s (NWL) second-quarter earnings rose 14%
on lower restructuring costs as well as higher margins stemming
from changes in its product lineup and easing commodities
prices.
The consumer-goods maker also raised its 2009 earnings forecast
by 15 cents a share to $1.15 to $1.30 a share, though its expects
this year's drop in sales at the higher end of its forecast.
Newell Rubbermaid also gave a weak third-quarter outlook -
earnings of 25 cents to 35 cents a share and sales down in the
high-teens on a percentage basis. Analysts were looking for
earnings of 34 cents and a revenue decline of 14% to $1.51
billion.
Consumer-products makers have been hurt in recent quarters as
shoppers turned to lower-cost and private-label brands. Newell
Rubbermaid slashed production and jobs to offset the decline.
The company - whose brands include Sharpie and Paper Mate -
reported a profit of $105.7 million, or 37 cents a share, up from
$92.5 million, or 33 cents, a year earlier. Excluding restructuring
and other costs, earnings fell to 47 cents from 49 cents.
Net sales decreased 18% to $1.5 billion, one-third of that due
to foreign-exchange effects.
The company in April projected earnings of 30 cents to 37 cents
and a net sales decline of about 20%.
Gross margin rose to 37.1% from 34.1% amid the cost cutting.
President and Chief Executive Mark Ketchum said its progress
with cost control in the first half gives the company "confidence
to judiciously increase" spending for marketing and brand-building
in the second half.
Shares closed at $12.26 on Wednesday and didn't trade premarket.
The stock is down nearly 45% in the past 11 months, though it has
nearly tripled from a 22-year-low in March.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com