Newell Rubbermaid Backs FY14 View For Higher Normalized Earnings, Sales - Update

(RTTNews) - Consumer and commercial products company Newell Rubbermaid Inc. (NWL) Friday reaffirmed its fiscal year 2014 outlook for higher normalized earnings and sales.

For fiscal 2014, the Atlanta, Georgia-based maker of Sharpie pens and Rubbermaid containers said it still expects earnings to be in a range of $1.61 to $1.67 per share. The company's 2014 earnings guidance include between $100 million and $120 million or $0.29 to $0.37 per share of Project Renewal restructuring and restructuring-related costs.

Excluding items, the company continues to expect normalized earnings in the range of $1.94 to $2.00 per share. On average, 16 analysts polled by Thomson Reuters expect the company to report earnings of $1.99 per share for fiscal 2014. Analysts' estimates typically exclude special items.

In fiscal 2013, the company generated reported earnings of $1.63 per share, earnings from continuing operations of $1.44 per share, and normalized earnings of $1.83 per share.

For fiscal 2014, the company continues to expect net sales growth of 2 percent to 3 percent and core sales growth of 3 percent to 4 percent. The company expects foreign exchange to have a negative impact on net sales of about 100 basis points. In fiscal 2013, the company generated net sales of $5.69 billion.

Analysts expect revenues of $5.85 billion for the year 2014.

The company also projects normalized operating margin improvement of up to 40 basis points for the year.

The company said it is on track to realize cumulative annualized cost savings of $270 to $325 million by the second quarter of 2015 related to Project Renewal. Of these savings, majority will be reinvested in the business to strengthen brand building and selling capabilities and accelerate growth, the company added.

Annual Operating cash flow is expected between $600 million and $650 million. This operating cash flow guidance assumes $100 million to $120 million in restructuring and restructuring-related cash payments.

Capital expenditures for the year are projected at $150 million to $175 million.

President and Chief Executive Officer Michael Polk will reaffirm its annual forecast during his presentation today at the Consumer Analyst Group of New York or CAGNY conference, the company said.

Newell Rubbermaid shares closed Thursday's trading at $31.81, up $0.36 or 1.14 percent.