Newell Rubbermaid reports strong Q2

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26 October 2006 — Atlanta (GA): Newell Rubbermaid’s Q3 net sales rose 10.4 percent to $1.59 billion, compared to $1.44 billion in the prior year.

 

Internal sales, which exclude the effect of the DYMO acquisition, increased 6.3 percent in Q3 as all reporting segments delivered positive internal sales growth, led by strength in Home & Family, Cleaning & Organization and Office Products.

 

All reported sales figures exclude the results of the company’s Little Tikes business, which was classified as discontinued operations during Q3 2006.

 

Mark Ketchum, CEO, said: "Our employees and brands again delivered strong internal sales growth and gross margin expansion in Q3. In addition, we continued the company’s transformation through execution of key supply chain, marketing and other strategic initiatives."

 

Gross margin for the third quarter 2006 improved to 33.7 percent, a 150 basis point improvement over the prior year. The expansion was driven by productivity, pricing and favourable mix, which more than offset raw material inflation.

 

Excluding Project Acceleration restructuring costs of $22.1 million in Q3 2006 and reversal of impairment in the third quarter 2005, income from continuing operations was $128.4 million, or $0.46 per share, for the third quarter 2006, exceeding company guidance and the prior year’s result of $116.5 million, or $0.42 per share. The Q3 results for each of 2006 and 2005 include one-time tax benefits of approximately $15 million.

 

Income from continuing operations, as reported, was $112.7 million, or $0.41 per share, compared to $136.6 million, or $0.49 per share, in the prior year.

 

Net sales for the nine months ended 30 September 2006 grew 10.4 percent to $4.56 billion, compared to $4.13 billion in the prior year.