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Newell Rubbermaid Inc. on Friday reported core sales grew in all of its businesses in the latest quarter, led by continued strength in the segment that includes Sharpie markers and Paper Mate pens, as earnings fell.

Adjusted profit, however, met Wall Street expectations.

Atlanta-based Newell has been revamping its business in recent years, shifting from a holding company to an operating company with five core business segments. The consumer-products company also has been cutting costs, selling off brands and acquiring others, such as Bubba Brands drink mugs and Baby Jogger strollers.

Last month, it agreed to acquire Jarden Corp. in a $15.4 billion deal that will add popular household brands like Rawlings baseball gloves and Mr. Coffee machines to its lineup.

Newell shareholders will end up with 55% of the combined company, which will be named Newell Brands, with $16 billion in annual revenue. Newell Chief Executive Michael Polk will lead the merged entity. The transaction is expected to close in the second quarter of 2016.

In October, Newell Rubbermaid said it agreed to buy Elmer's Products Inc., whose brands include Krazy Glue and X-Acto. It also initiated a process to divest its Levolor and Kirsch window-coverings brand.

Newell measures its businesses with a metric called core sales growth, which excludes acquisitions, divestitures and foreign-currency impacts. On that basis, the company reported growth in all five of its business segments in the fourth quarter.

For the quarter ended Dec. 31, Newell's profit shrank to $13.2 million, or 5 cents a share, from $52 million, or 19 cents a share, a year earlier. Results were helped in part by a lower tax rate, but hurt by deconsolidation charges for its Venezuela operations and higher restructuring and other transformation costs. Currency headwinds and higher advertising and promotion spending also dented the bottom line.

During the quarter, Newell reported $11.9 million of costs associated with the acquisition and integration of Elmer's Products and the pending Jarden transaction, as well as a $4.5 million interest expense in connection with bridge loans related to the acquisition and integration of Bubba Brands and Baby Jogger.

Excluding special items, per-share earnings were 56 cents, compared with 49 cents in the quarter last year.

Total sales grew 2.3% to $1.56 billion. Core sales increased 6.2%, excluding contributions from acquisitions and divestitures as well as a negative impact from foreign currency.

Analysts polled by Thomson Reuters expected an adjusted per-share profit of 56 cents on sales of $1.56 billion.

In its different segments, core sales rose 13% in writing, 0.1% in home solutions, 1.4% in tools, 5.8% in commercial products and 10.2% in baby and parenting.

Gross margin improved 70 basis points to 38.3%.

Newell, which also owns brands such as Calphalon cookware and Graco car seats, reaffirmed its core sales and earnings guidance for 2016, excluding any impact from the Jarden transaction.

Shares of Newell, which have fallen 13% over the past three months, were inactive premarket.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

January 29, 2016 07:55 ET (12:55 GMT)

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