Newell Rubbermaid Q4 Results Tops Estimates, Guides 2014 In Line

(RTTNews) - Consumer and commercial products company Newell Rubbermaid, Inc. (NWL) reported Friday a profit for the fourth quarter that grew from last year, reflecting lower restructuring charges, improved margins and sales growth.

Adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings and core revenue growth forecast for the full-year 2014, in line with Street view.

"We achieved a strong set of fourth quarter 2013 results, including the best quarterly core sales growth rate in years. Our core sales grew 4.4 percent with broad based increases across all four regions and four of our five operating segments: Baby & Parenting, Commercial Products, Tools, and Writing," President and CEO Michael Polk said.

The Atlanta, Georgia-based maker of Sharpie pens and Rubbermaid containers posted net income of $117.3 million or $0.41 per share for the fourth quarter, higher than $101.9 million or $0.35 per share in the prior-year quarter.

Excluding items, normalized earnings for the quarter was $134.1 million or $0.47 per share, compared to $126.6 million or $0.43 per share in the year-ago quarter.

On average, 18 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.

Net sales for the quarter grew 2.9 percent to $1.49 billion from $1.45 billion in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $1.48 billion.

Core sales, which exclude 150 basis points of negative foreign currency impact, grew 4.4 percent.

Writing segment net sales edged up 0.5 percent to $433, while net sales for home solutions segment decreased 1.9 percent to $423.9 million from a year ago.

Tools segment net sales totaled $220.7 million, up 5.3 percent, while commercial products segment net sales grew 7.6 percent to $202.9 million from the year-ago quarter. Baby & parenting segment net sales also increased 12.4 percent to $209.3 million from last year.

Geographically, sales in North America grew 2.4 percent to $1.08 billion from last year, with U.S. sales increasing 3.5 percent, while Canada sales declined 9.5 percent.

International sales grew 4.5 percent to 412 million from last year, with sales from Europe, Middle East, and Africa increasing 5.3 percent, and Latin America sales growing 19.9 percent, while Asia Pacific sales declined 8.2 percent.

Operating margin for the quarter expanded 20 basis points to 10.7 percent from last year's 10.5 percent, as gross margin improved 30 basis points, driven by positive pricing and productivity improvement.

For fiscal 2013, the company reported net income of $474.6 million or $1.63 per share, higher than $401.3 million or $1.37 in the prior year. Net income from continuing operations grew to $420.1 million or $1.44 per share from $392 million or $1.34 per share last year.

Excluding items, normalized earnings for the year were $534.9 million or $1.83 per share, compared to $490.6 million or $1.67 per share in the year ago. Analysts expected the company to report earnings or $1.83 per share for fiscal 2013.

Net sales for the full year grew 2 percent to $5.69 billion from $5.58 billion in the previous year. Street was looking for full-year 2013 revenues of 5.69 billion. Core sales, which exclude the impact of foreign currency, increased 3.2 percent.

Looking ahead to fiscal 2014, the company expects earnings in a range of $1.61 to $1.67 per share, and normalized earnings in the range of $1.94 to $2.00 per share, on projected core sales growth of 3 to 4 percent.

Street is currently looking for full-year 2014 earnings of $2.00 per share, on annual revenues growth of 3.3 percent to $5.88 billion.

The company also 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, with majority of the savings to be reinvested in the business to strengthen brand building and selling capabilities and accelerate growth. Capital expenditures are projected at $150 to $175 million.

NWL closed Thursday's regular trading session at $30.27, down $0.40 on a volume of 4.52 million shares. In the past 52-week period, the stock has been trading in a broad range of $22.24 to $32.54.