Newell Rubbermaid (NYSE: NWL) today announced solid third quarter 2012 results and reaffirmed full-year core sales, normalized operating margin, normalized earnings per share and operating cash flow guidance. The company also announced a 50 percent increase in its quarterly dividend to $0.15 per share and plans to expand its Project Renewal restructuring program. Five new work streams will generate between $180 and $225 million in incremental annualized savings by the end of the second quarter of 2015 for an incremental cash cost of $225 to $250 million.
“Our solid third quarter results represent another step toward establishing a more consistent cadence of delivery. I am encouraged by the progress we have made over the last 15 months and excited by the significant potential that lies ahead,” said Michael Polk, President and Chief Executive Officer. “We have built the organization’s capacity to drive delivery and drive change. We are on track to deliver the savings we committed to in the first phase of Project Renewal on time and in full. Today’s announced expansion of Project Renewal will accelerate our transformation.”
The company expects the expansion of Project Renewal to enable four outcomes:
- a flatter and simplified organization built around the first two pillars of the Growth Game Plan – Brand & Category Development and Best in Class Execution & Delivery,
- an accelerated release of costs, the majority of which will be invested in faster growth and the geographic expansion of our leading brands,
- a greater line of sight to earnings and operating cash flow growth while the company invests to accelerate performance, and
- a strengthened leadership team that can drive faster implementation of the Growth Game Plan.
“The actions taken today reflect an exciting set of changes and an important moment for our company. I am confident they will accelerate achievement of our Growth Game Plan ambition of creating a bigger, faster growing, more global, more profitable Newell Rubbermaid,” said Polk.
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