Newell Rubbermaid Q3 Profit Surges On Sale Gain, Backs Full Year View

(RTTNews) - Consumer and commercial products company Newell Rubbermaid, Inc. (NWL) Friday said third-quarter profit increased 78 percent from the prior year, due largely to a gain on the disposal of the company's Hardware business. Adjusted earnings topped estimates. The company's guidance for 2013 is unchanged.

Net income increased to $193.3 million from $108.3 million in the previous year. Earnings per share advanced to $0.66 from $0.37. The latest results include $0.11 per share for restructuring and restructuring-related costs associated with Project Renewal, $0.01 per share of net tax benefits, and a net gain from discontinued operations of $0.24 per share.

Normalized earnings per share were $0.52, while it totaled $0.47 last year, benefiting from improved operating income, decreased interest expense and a lower tax rate. On average, 15 analysts polled by Thomson Reuters expected earnings per share of $0.49 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales grew 2.1 percent to $1.487 billion from $1.457 billion in the prior year. Analysts estimated revenues of $1.50 billion.

Core sales, which exclude the impact of changes in foreign currency, grew 3.3 percent from last year.

Writing net sales slid nearly 1 percent to $454.7 million, while Core sales edged up 0.2 percent, reflecting strong growth in North America in customers outside the office superstore channel and continued momentum in Latin America.

In Home Solutions, net sales increased 6.8 percent to $431.4 million, and core sales increased 7.2 percent, reflecting strong customer programming on Rubbermaid, new Levolor product launches and increased distribution of Calphalon.

Commercial Products net sales decreased 4.5 percent to $196.3 million, and core sales declined 4.3 percent against a difficult year ago comparison of 8.4 percent growth. Softness in Rubbermaid Healthcare was the primary driver of the decline, amid uncertainty in the U.S. healthcare market.

The tax rate for the quarter was 24.6 percent compared to 35 percent in the prior year.

The company's Board of Directors approved an accelerated share repurchase plan to repurchase $350 million of its common shares, which is expected to be entered into during the fourth quarter. This $350 million is incremental to the current $300 million repurchase plan which was authorized in 2011.

For 2013, the company continues to expect normalized earnings per share of $1.80 to $1.84 and annual core sales growth of 2 to 4 percent. Analysts project annual earnings of $1.82 per share.

NWL closed at $28.92 on Thursday.