Newell Rubbermaid Q4 Profit Increases; Sees FY14 Adj. Profit In Line

(RTTNews) - Consumer and commercial products company Newell Rubbermaid Inc. (NWL) reported that its fourth-quarter net income increased to $117.3 million, from $101.9 million in the prior year. Earnings per share of $0.41 increased 17.1 percent versus the prior year's $0.35 per diluted share. The increase was largely due to improved operating results, reduced share count, the absence of a 2012 loss on an extinguishment of debt and a lower tax rate.

Normalized net income was $134.1 million, compared with $126.6 million in the prior year. Normalized diluted earnings per share of $0.47 increased 9.3 percent versus the prior year's $0.43, primarily due to the improved operating results, reduced share count and a lower tax rate. Analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Normalized operating income was $182.0 million compared with $176.3 million in the prior year period. Fourth quarter 2013 normalized operating income excludes restructuring and restructuring-related costs of $22.8 million, while 2012 normalized operating income excludes $23.9 million of restructuring and restructuring-related costs.

Net sales in the fourth quarter were $1.49 billion, compared with $1.45 billion in the prior year. Thirteen analysts estimated revenues of $1.48 billion for the quarter. Core sales, which exclude 150 basis points of negative foreign currency impact, grew 4.4 percent.

Looking ahead for 2014, the company expects earnings per share to be in the range of $1.61 to $1.67, Normalized earnings per share of $1.94 to $2.00, and Core sales growth of 3 to 4 percent.

Street currently is looking for fiscal year 2014 earnings of $2.00 per share on annual revenues of $5.88 billion.

2014 normalized earnings per share guidance excludes between $100 and $120 million of Project Renewal restructuring and restructuring-related costs.

The company expects foreign exchange to have a negative impact on net sales of about 100 basis points.