Normalized earnings of $0.43 per diluted share compares with prior year normalized results of $0.40 per diluted share. This 7.5 percent improvement was largely driven by lower interest expense and a lower normalized tax rate.
For the fourth quarter 2012, normalized diluted earnings per share exclude $0.06 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; $0.01 per diluted share related to the extinguishment of debt; and the exclusion of $0.01 per diluted share resulting from tax contingencies. For the fourth quarter 2011, normalized diluted earnings per share excluded $0.12 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan and Project Renewal. (A reconciliation of the “as reported” results to “normalized” results is included below.)
The company generated operating cash flow of $261.3 million during the fourth quarter of 2012 compared with $281.5 million in the comparable period last year. Capital expenditures were $47.0 million compared with $71.7 million in the prior year.
A reconciliation of the fourth quarter 2012 and 2011 results is as follows:
|Q4 2012||Q4 2011*|
|Diluted earnings per share (as reported)||$||0.35||$||0.27|
|Restructuring and restructuring-related costs||$||0.06||$||0.12|
|Income tax – incremental contingencies||$||0.01||$||0.00|
|Loss related to the extinguishment of debt||$||0.01||$||0.00|
|* totals may not add due to rounding|
Fourth Quarter 2012 Operating Segment ResultsThe Home Solutions segment net sales for the fourth quarter were $453.1 million, a 0.8 percent increase compared with the prior year quarter. Core sales in the segment increased 0.5 percent. Growth from the Rubbermaid®, Calphalon®, and Goody® brands was partially offset by a decline in Décor largely related to a change in merchandising strategy at a significant retail customer. Operating income in the Home Solutions segment was $64.8 million, or 14.3 percent of sales, as compared with $57.2 million, or 12.7 percent of sales, in the prior year. Normalized operating income in the Home Solutions segment was $67.7 million, or 14.9 percent of sales, compared with $57.2 million, or 12.7 percent of sales, in the prior year. The improvements were driven by Project Renewal-related structural SG&A cost reductions and improved productivity, which more than offset input cost inflation.