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Newell Rubbermaid Reports Solid Fourth Quarter 2012 Results And Provides 2013 Guidance

Stocks in this article: NWL

The company determined the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.

While the company believes that these non-GAAP financial measures are useful in evaluating the company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.9 billion and a strong portfolio of leading brands, including Rubbermaid ®, Sharpie ®, Graco ®, Calphalon ®, Irwin ®, Lenox ®, Levolor ®, Paper Mate ®, Dymo ®, Waterman ®, Parker ®, Goody ®, Rubbermaid Commercial Products ® and Aprica ®.

This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, the European Transformation Plan, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to successfully implement information technology solutions throughout our organization; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations and those factors listed in the company’s most recently filed Quarterly Report on Form 10-Q and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission.

Newell Rubbermaid Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
     
 
         
Three Months Ended December 31,
YOY
2012 2011 % Change
 
Net sales $ 1,518.8 $ 1,495.2 1.6 %
Cost of products sold   963.8     938.6  
 
GROSS MARGIN 555.0 556.6 (0.3 )%
% of sales 36.5 % 37.2 %
 
Selling, general &
administrative expenses 382.6 393.3 (2.7 )%
% of sales 25.2 % 26.3 %
 
Restructuring costs   18.6     37.8  
 
OPERATING INCOME 153.8 125.5 22.5 %
% of sales 10.1 % 8.4 %
 
Nonoperating expenses:
Interest expense, net 17.4 21.2
Loss on extinguishment of debt 4.1 -
Other (income) expense, net   (0.2 )   2.7  
  21.3     23.9   (10.9 )%
 
INCOME BEFORE INCOME TAXES 132.5 101.6 30.4 %
% of sales 8.7 % 6.8 %
 
Income taxes 30.6 19.9 53.8 %
Effective rate   23.1 %   19.6 %
 
NET INCOME FROM CONTINUING OPERATIONS 101.9 81.7 24.7 %
% of sales 6.7 % 5.5 %
 
Loss from discontinued operations, net of tax - (1.3 )
   
NET INCOME $ 101.9   $ 80.4   26.7 %
6.7 % 5.4 %
 
EARNINGS PER SHARE:
Basic
Income from continuing operations $ 0.35 $ 0.28
Loss from discontinued operations - -
Net income $ 0.35 $ 0.28
 
Diluted
Income from continuing operations $ 0.35 $ 0.28
Loss from discontinued operations - -
Net income $ 0.35 $ 0.27
 
AVERAGE SHARES OUTSTANDING:
Basic 290.0 292.0
Diluted 293.1 294.4
 
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in millions, except per share data)
     
 
         
Twelve Months Ended December 31,
YOY
2012 2011 % Change
 
Net sales $ 5,902.7 $ 5,864.6 0.6 %
Cost of products sold   3,673.6     3,659.4  
 
GROSS MARGIN 2,229.1 2,205.2 1.1 %
% of sales 37.8 % 37.6 %
 
Selling, general &
administrative expenses 1,521.1 1,515.3 0.4 %
% of sales 25.8 % 25.8 %
 
Impairment charges - 382.6
Restructuring costs   56.1     50.1  
 
OPERATING INCOME 651.9 257.2 NMF
% of sales 11.0 % 4.4 %
 
Nonoperating expenses:
Interest expense, net 76.1 86.2
Loss on extinguishments of debt 10.9 4.8
Other (income) expense, net   (1.0 )   13.7  
  86.0     104.7   (17.9 )%
 
INCOME BEFORE INCOME TAXES 565.9 152.5 NMF
% of sales 9.6 % 2.6 %
 
Income taxes 166.3 17.9 NMF
Effective rate   29.4 %   11.7 %
 
NET INCOME FROM CONTINUING OPERATIONS 399.6 134.6 NMF
% of sales 6.8 % 2.3 %
 
Income (loss) from discontinued operations, net of tax 1.7 (9.4 )
   
NET INCOME $ 401.3   $ 125.2   NMF
6.8 % 2.1 %
 
EARNINGS PER SHARE:
Basic
Income from continuing operations $ 1.37 $ 0.46
Income (loss) from discontinued operations 0.01 (0.03 )
Net income $ 1.38 $ 0.43
 
Diluted
Income from continuing operations $ 1.36 $ 0.45
Income (loss) from discontinued operations 0.01 (0.03 )
Net income $ 1.37 $ 0.42
 
AVERAGE SHARES OUTSTANDING:
Basic 291.2 293.6
Diluted 293.6 296.2
 
 
NMF = Not meaningful
 
Newell Rubbermaid Inc.
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
CERTAIN LINE ITEMS
(in millions, except per share data)
                       
Three Months Ended December 31, 2012
GAAP Measure   Restructuring   Loss on     Non-GAAP Measure
and restructuring- extinguishment Non-recurring   Percentage
Reported related costs (1) of debt (2) tax items (3) Normalized*   of Sales
 
Cost of products sold $ 963.8 $ (2.6 ) $ - $ - $ 961.2 63.3 %
 
Gross margin $ 555.0 $ 2.6 $ - $ - $ 557.6 36.7 %
 
Selling, general & administrative expenses $ 382.6 $ (2.8 ) $ - $ - $ 379.8 25.0 %
 
Operating income $ 153.8 $ 24.0 $ - $ - $ 177.8 11.7 %
 
Nonoperating expenses $ 21.3 $ - $ (4.1 ) $ - $ 17.2
 
Income before income taxes $ 132.5 $ 24.0 $ 4.1 $ - $ 160.6
 
Income taxes (4) $ 30.6 $ 5.0 $ 1.5 $ (3.9 ) $ 33.2
 
Net income $ 101.9 $ 19.0 $ 2.6 $ 3.9 $ 127.4
 
Diluted earnings per share** $ 0.35 $ 0.06 $ 0.01 $ 0.01 $ 0.43
 
                     
Three Months Ended December 31, 2011
GAAP Measure Restructuring Non-GAAP Measure
and restructuring- Discontinued CEO transition Percentage
Reported related costs (1) operations (5) costs (6) Normalized* of Sales
 
Selling, general & administrative expenses $ 393.3 $ (11.6 ) $ - $ (1.9 ) $ 379.8 25.4 %
 
Operating income $ 125.5 $ 49.4 $ - $ 1.9 $ 176.8 11.8 %
 
Income before income taxes $ 101.6 $ 49.4 $ - $ 1.9 $ 152.9
 
Income taxes (4) $ 19.9 $ 14.2 $ - $ 1.0 $ 35.1
 
Net income from continuing operations $ 81.7 $ 35.2 $ - $ 0.9 $ 117.8
 
Net income $ 80.4 $ 35.2 $ 1.3 $ 0.9 $ 117.8
 
Diluted earnings per share** $ 0.27 $ 0.12 $ - $ - $ 0.40
 
 
* Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.
**Totals may not add due to rounding.
 
(1) Restructuring and restructuring-related charges during the three months ended December 31, 2012 include $5.4 million of restructuring-related costs and $18.6 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the three months ended December 31, 2011 include $11.6 million of restructuring-related costs and $37.8 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal.
 
(2) Loss on extinguishment of debt of $4.1 million during the three months ended December 31, 2012 was incurred in connection with the early retirement of the April 2013 Senior Notes.
 
(3) During the three months ended December 31, 2012, the Company incurred $3.9 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation.
 
(4) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.
 
(5) During the three months ended December 31, 2011, the Company recognized a $1.3 million loss in discontinued operations primarily related to the sale of the hand torch and solder business in July 2011.
 
(6) The Company incurred incremental costs of $1.9 million during the quarter ended December 31, 2011 associated with its CEO transition.
 
Newell Rubbermaid Inc.  
RECONCILIATION OF GAAP AND NON-GAAP INFORMATION
CERTAIN LINE ITEMS
(in millions, except per share data)
                             
Twelve Months Ended December 31, 2012
GAAP Measure   Restructuring   Loss on       Non-GAAP Measure
and restructuring- extinguishments Non-recurring Discontinued   Percentage
Reported related costs (1) of debt (2) tax items (3) operations (4) Normalized* of Sales
 
Cost of products sold $ 3,673.6 $ (2.6 ) $ - $ - $ - $ 3,671.0 62.2 %
 
Gross margin $ 2,229.1 $ 2.6 $ - $ - $ - $ 2,231.7 37.8 %
 
Selling, general & administrative expenses $ 1,521.1 $ (31.9 ) $ - $ - $ - $ 1,489.2 25.2 %
 
Operating income $ 651.9 $ 90.6 $ - $ - $ - $ 742.5 12.6 %
 
Nonoperating expenses $ 86.0 $ - $ (10.9 ) $ - $ - $ 75.1
 
Income before income taxes $ 565.9 $ 90.6 $ 10.9 $ - $ - $ 667.4
 
Income taxes (5) $ 166.3 $ 19.9 $ 4.0 $ (23.1 ) $ - $ 167.1
 
Net income from continuing operations $ 399.6 $ 70.7 $ 6.9 $ 23.1 $ - $ 500.3
 
Net income $ 401.3 $ 70.7 $ 6.9 $ 23.1 $ (1.7 ) $ 500.3
 
Diluted earnings per share** $ 1.37 $ 0.24 $ 0.02 $ 0.08 $ (0.01 ) $ 1.70
 
                                 
Twelve Months Ended December 31, 2011    
GAAP Measure Restructuring Loss on Non-GAAP Measure
and restructuring- extinguishments Non-recurring Discontinued Impairment CEO transition Percentage
Reported related costs (1)   of debt (2) tax items (3)   operations (4)   charges (6) costs (7) Normalized* of Sales
 
Selling, general & administrative expenses $ 1,515.3 $ (37.4 ) $ - $ - $ - $ - $ (6.3 ) $ 1,471.6 25.1 %
 
Operating income $ 257.2 $ 87.5 $ - $ - $ - $ 382.6 $ 6.3 $ 733.6 12.5 %
 
Nonoperating expenses $ 104.7 $ - $ (4.8 ) $ - $ - $ - $ - $ 99.9
 
Income before income taxes $ 152.5 $ 87.5 $ 4.8 $ - $ - $ 382.6 $ 6.3 $ 633.7
 
Income taxes (5) $ 17.9 $ 17.0 $ 1.7 $ 49.0 $ - $ 76.2 $ 1.0 $ 162.8
 
Net income from continuing operations $ 134.6 $ 70.5 $ 3.1 $ (49.0 ) $ - $ 306.4 $ 5.3 $ 470.9
 
Net income $ 125.2 $ 70.5 $ 3.1 $ (49.0 ) $ 9.4 $ 306.4 $ 5.3 $ 470.9
 
Diluted earnings per share** $ 0.42 $ 0.24 $ 0.01 $ (0.17 ) $ 0.03 $ 1.03 $ 0.02 $ 1.59
 
 
* Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments.
**Totals may not add due to rounding.
 
(1) Restructuring and restructuring-related charges during the twelve months ended December 31, 2012 include $34.5 million of restructuring-related costs and $56.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the twelve months ended December 31, 2011 include $37.4 million of restructuring-related costs and $50.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal.
 
(2) Loss on extinguishments of debt of $10.9 million during the twelve months ended December 31, 2012 primarily represents the costs associated with the early retirement of the junior convertible subordinated debentures underlying the quarterly income preferred securities (QUIPS) and the April 2013 Senior Notes. Loss on extinguishments of debt of $4.8 million during the twelve months ended December 31, 2011 represents costs incurred to exchange substantially all of the remaining convertible notes issued during March 2009 for shares and cash.
 
(3) During the twelve months ended December 31, 2012, the Company incurred $23.1 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation. During the twelve months ended December 31 2011, the Company recognized $49.0 million of previously unrecognized income tax benefits primarily resulting from the expiration of various statutes of limitation.
 
(4) During the twelve months ended December 31, 2012 and the twelve months ended December 31, 2011, the Company recognized a $1.7 million gain and $9.4 million loss in discontinued operations, respectively, related to the sale of the hand torch and solder business in July 2011.
 
(5) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.
 
(6) During the twelve months ended December 31, 2011, the Company recorded asset impairment charges of $382.6 million primarily related to goodwill impairment for the Baby & Parenting and Hardware businesses.
 
(7) The Company incurred incremental costs of $6.3 million during the twelve months ended December 31, 2011 associated with its CEO transition.
 
Newell Rubbermaid Inc.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in millions)
     
December 31, December 31,
Assets: 2012 2011
 
Cash and cash equivalents $ 183.8 $ 170.2
Accounts receivable, net 1,112.4 1,002.0
Inventories, net 696.4 699.9
Deferred income taxes 135.8 130.7
Prepaid expenses and other   142.7   145.2
 
Total Current Assets 2,271.1 2,148.0
 
Property, plant and equipment, net 560.2 551.4
Goodwill 2,370.2 2,366.0
Other intangible assets, net 654.1 666.1
Deferred income taxes 85.2 120.2
Other assets 281.2 309.2
   
Total Assets $ 6,222.0 $ 6,160.9
 
Liabilities and Stockholders' Equity:
 
Accounts payable $ 527.4 $ 468.5
Accrued compensation 173.5 131.4
Other accrued liabilities 658.0 693.5
Short-term debt 210.7 103.6
Current portion of long-term debt   1.2   263.9
 
Total Current Liabilities 1,570.8 1,660.9
 
Long-term debt 1,706.5 1,809.3
Other noncurrent liabilities 944.5 838.1
 
Stockholders' Equity - Parent 1,996.7 1,849.1
Stockholders' Equity - Noncontrolling Interests   3.5   3.5
 
Total Stockholders' Equity 2,000.2 1,852.6
   
Total Liabilities and Stockholders' Equity $ 6,222.0 $ 6,160.9
 
Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in millions)
   
Twelve Months Ended December 31,
2012 2011
Operating Activities:
Net income $ 401.3 $ 125.2
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 163.7 161.6
Impairment charges - 382.6
Loss on extinguishments of debt 10.9 4.8
(Gain) loss on disposal of discontinued operations (5.2 ) 13.9
Non-cash restructuring costs 0.3 7.0
Deferred income taxes 71.2 (4.8 )
Stock-based compensation expense 32.9 43.0
Other 12.0 11.7
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures:
Accounts receivable (101.2 ) (17.6 )
Inventories 7.7 (21.5 )
Accounts payable 56.3 3.3
Accrued liabilities and other   (31.4 )   (147.9 )
Net cash provided by operating activities $ 618.5 $ 561.3
 
Investing Activities:
Acquisitions and acquisition-related activity $ (26.5 ) $ (20.0 )
Capital expenditures (177.2 ) (222.9 )
Proceeds from sales of noncurrent assets 43.5 44.3
Other   (2.8 )   (7.8 )
Net cash used in investing activities $ (163.0 ) $ (206.4 )
 
Financing Activities:
Net short-term borrowings $ 106.0 $ (34.4 )
Proceeds from issuance of debt, net of debt issuance costs 841.9 3.3
Payments on and for the settlement of notes payable and debt (1,203.4 ) (151.0 )
Cash consideration paid to exchange convertible notes - (3.1 )
Repurchase and retirement of shares of common stock (91.5 ) (46.1 )
Cash dividends (125.9 ) (84.9 )
Excess tax benefits related to stock-based compensation 12.7 -
Other, net   14.2     (8.4 )
Net cash used in financing activities $ (446.0 ) $ (324.6 )
 
Currency rate effect on cash and cash equivalents $ 4.1   $ 0.3  
 
Increase in cash and cash equivalents $ 13.6 $ 30.6
Cash and cash equivalents at beginning of year   170.2     139.6  
Cash and cash equivalents at end of year $ 183.8   $ 170.2  
 
Newell Rubbermaid Inc.
Financial Worksheet- Segment Reporting
(In Millions)
                           
2012 2011
Reconciliation (1) Reconciliation (1) Year-over-year changes
Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sales Normalized OI
Net Sales OI Items OI Margin Net Sales OI Items OI Margin $ % $ %
Q1:
Home Solutions $ 349.5 $ 35.5 $ - $ 35.5 10.2 % $ 383.9 $ 49.2 $ - $ 49.2 12.8 % $ (34.4 ) (9.0 )% $ (13.7 ) (27.8 )%
Writing 290.1 40.0 - 40.0 13.8 % 272.5 41.6 - 41.6 15.3 % 17.6 6.5 % (1.6 ) (3.8 )%
Tools 190.6 28.7 - 28.7 15.1 % 168.4 23.6 - 23.6 14.0 % 22.2 13.2 % 5.1 21.6 %
Commercial Products 175.4 18.6 - 18.6 10.6 % 166.5 20.8 - 20.8 12.5 % 8.9 5.3 % (2.2 ) (10.6 )%
Baby & Parenting 182.2 22.4 - 22.4 12.3 % 150.3 7.4 - 7.4 4.9 % 31.9 21.2 % 15.0 202.7 %
Specialty 144.6 23.4 - 23.4 16.2 % 132.6 15.7 - 15.7 11.8 % 12.0 9.0 % 7.7 49.0 %
Restructuring Costs - (12.7 ) 12.7 - - (5.8 ) 5.8 - - -
Corporate   -   (31.7 )   10.0   (21.7 )   -   (24.5 )   5.3   (19.2 )   -     (2.5 ) (13.0 )%
Total $ 1,332.4 $ 124.2   $ 22.7 $ 146.9   11.0 % $ 1,274.2 $ 128.0   $ 11.1 $ 139.1   10.9 % $ 58.2   4.6 % $ 7.8   5.6 %
 
 
2012 2011
Reconciliation (1) Reconciliation (1) Year-over-year changes
Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sales Normalized OI
Net Sales OI Items OI Margin Net Sales OI Items OI Margin $ % $ %
Q2:
Home Solutions $ 414.0 $ 47.6 $ - $ 47.6 11.5 % $ 426.1 $ 51.6 $ - $ 51.6 12.1 % $ (12.1 ) (2.8 )% $ (4.0 ) (7.8 )%
Writing 394.4 98.0 - 98.0 24.8 % 407.7 91.9 - 91.9 22.5 % (13.3 ) (3.3 )% 6.1 6.6 %
Tools 202.4 30.5 - 30.5 15.1 % 200.2 30.6 - 30.6 15.3 % 2.2 1.1 % (0.1 ) (0.3 )%
Commercial Products 190.1 21.1 - 21.1 11.1 % 194.7 30.1 - 30.1 15.5 % (4.6 ) (2.4 )% (9.0 ) (29.9 )%
Baby & Parenting 182.4 19.2 - 19.2 10.5 % 175.2 13.0 - 13.0 7.4 % 7.2 4.1 % 6.2 47.7 %
Specialty 132.9 12.0 - 12.0 9.0 % 141.4 8.9 - 8.9 6.3 % (8.5 ) (6.0 )% 3.1 34.8 %
Restructuring Costs - (11.1 ) 11.1 - - (1.0 ) 1.0 - - -
Corporate   -   (31.8 )   10.5   (21.3 )   -   (29.2 )   9.0   (20.2 )   -     (1.1 ) (5.4 )%
Total $ 1,516.2 $ 185.5   $ 21.6 $ 207.1   13.7 % $ 1,545.3 $ 195.9   $ 10.0 $ 205.9   13.3 % $ (29.1 ) (1.9 )% $ 1.2   0.6 %
 
 
2012 2011
Reconciliation (1) Reconciliation (1,2) Year-over-year changes
Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sales Normalized OI
Net Sales OI Items OI Margin Net Sales OI Items OI Margin $ % $ %
Q3:
Home Solutions $ 427.4 $ 69.6 $ 2.0 $ 71.6 16.8 % $ 450.6 70.9 $ - $ 70.9 15.7 % $ (23.2 ) (5.1 )% $ 0.7 1.0 %
Writing 387.2 68.3 1.2 69.5 17.9 % 381.5 57.9 - 57.9 15.2 % 5.7 1.5 % 11.6 20.0 %
Tools 203.6 26.8 - 26.8 13.2 % 208.7 34.6 - 34.6 16.6 % (5.1 ) (2.4 )% (7.8 ) (22.5 )%
Commercial Products 205.6 31.2 - 31.2 15.2 % 193.3 29.6 - 29.6 15.3 % 12.3 6.4 % 1.6 5.4 %
Baby & Parenting 185.3 18.3 - 18.3 9.9 % 176.2 17.7 - 17.7 10.0 % 9.1 5.2 % 0.6 3.4 %
Specialty 126.2 12.6 - 12.6 10.0 % 139.6 20.3 - 20.3 14.5 % (13.4 ) (9.6 )% (7.7 ) (37.9 )%
Impairment Charges - - - - - (382.6 ) 382.6 - - -
Restructuring Costs - (13.7 ) 13.7 - - (5.5 ) 5.5 - - -
Corporate   -   (24.7 )   5.4   (19.3 )   -   (35.1 )   15.9   (19.2 )   -     (0.1 ) (0.5 )%
Total $ 1,535.3 $ 188.4   $ 22.3 $ 210.7   13.7 % $ 1,549.9 $ (192.2 ) $ 404.0 $ 211.8   13.7 % $ (14.6 ) (0.9 )% $ (1.1 ) (0.5 )%
 
 
2012 2011
Reconciliation (1) Reconciliation (1) Year-over-year changes
Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sales Normalized OI
Net Sales OI Items OI Margin Net Sales OI Items OI Margin $ % $ %
Q4:
Home Solutions $ 453.1 $ 64.8 $ 2.9 $ 67.7 14.9 % $ 449.6 $ 57.2 $ - $ 57.2 12.7 % $ 3.5 0.8 % $ 10.5 18.4 %
Writing 344.5 55.6 - 55.6 16.1 % 337.6 55.5 - 55.5 16.4 % 6.9 2.0 % 0.1 0.2 %
Tools 209.5 23.8 - 23.8 11.4 % 202.3 30.3 - 30.3 15.0 % 7.2 3.6 % (6.5 ) (21.5 )%
Commercial Products 188.6 22.0 - 22.0 11.7 % 187.0 27.8 - 27.8 14.9 % 1.6 0.9 % (5.8 ) (20.9 )%
Baby & Parenting 186.2 12.8 - 12.8 6.9 % 178.7 13.5 - 13.5 7.6 % 7.5 4.2 % (0.7 ) (5.2 )%
Specialty 136.9 20.2 - 20.2 14.8 % 140.0 15.3 - 15.3 10.9 % (3.1 ) (2.2 )% 4.9 32.0 %
Restructuring Costs - (18.6 ) 18.6 - - (37.8 ) 37.8 - - -
Corporate   -   (26.8 )   2.5   (24.3 )   -   (36.3 )   13.5   (22.8 )   -     (1.5 ) (6.6 )%
Total $ 1,518.8 $ 153.8   $ 24.0 $ 177.8   11.7 % $ 1,495.2 $ 125.5   $ 51.3 $ 176.8   11.8 % $ 23.6   1.6 % $ 1.0   0.6 %
 
 
2012 2011
Reconciliation (1) Reconciliation (1,2) Year-over-year changes
Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sales Normalized OI
Net Sales OI Items OI Margin Net Sales OI Items OI Margin $ % $ %
YE:
Home Solutions $ 1,644.0 $ 217.5 $ 4.9 $ 222.4 13.5 % $ 1,710.2 $ 228.9 $ - $ 228.9 13.4 % $ (66.2 ) (3.9 )% $ (6.5 ) (2.8 )%
Writing 1,416.2 261.9 1.2 263.1 18.6 % 1,399.3 246.9 - 246.9 17.6 % 16.9 1.2 % 16.2 6.6 %
Tools 806.1 109.8 - 109.8 13.6 % 779.6 119.1 - 119.1 15.3 % 26.5 3.4 % (9.3 ) (7.8 )%
Commercial Products 759.7 92.9 - 92.9 12.2 % 741.5 108.3 - 108.3 14.6 % 18.2 2.5 % (15.4 ) (14.2 )%
Baby & Parenting 736.1 72.7 - 72.7 9.9 % 680.4 51.6 - 51.6 7.6 % 55.7 8.2 % 21.1 40.9 %
Specialty 540.6 68.2 - 68.2 12.6 % 553.6 60.2 - 60.2 10.9 % (13.0 ) (2.3 )% 8.0 13.3 %
Impairment Charges - - - - - (382.6 ) 382.6 - - -
Restructuring Costs - (56.1 ) 56.1 - - (50.1 ) 50.1 - - -
Corporate   -   (115.0 )   28.4   (86.6 )   -   (125.1 )   43.7   (81.4 )   -     (5.2 ) (6.4 )%
Total $ 5,902.7 $ 651.9   $ 90.6 $ 742.5   12.6 % $ 5,864.6 $ 257.2   $ 476.4 $ 733.6   12.5 % $ 38.1   0.6 % $ 8.9   1.2 %
 
 
(1) Excluded items consist of restructuring-related and restructuring costs. Restructuring-related and restructuring costs of $34.5 million and $56.1 million, respectively, incurred during the 2012 periods relate to the European Transformation Plan and Project Renewal. For 2011, restructuring-related and restructuring costs of $37.4 million and $50.1 million, respectively, relate to the European Transformation Plan and Project Renewal. Additionally, Normalized operating income for the twelve months ended December 31, 2011 excludes incremental SG&A costs of $6.3 million resulting from the CEO transition during 2011.
 
(2) Normalized operating income for the three months ended September 30, 2011 and twelve months ended December 31, 2011 exclude impairment charges of $382.6 million relating primarily to the impairment of goodwill for the Baby & Parenting and Hardware businesses.
 
Newell Rubbermaid Inc.
Three Months Ended December 31, 2012
In Millions
               
Currency Analysis
 
 
By Segment
 
2012 2011 Year-Over-Year Increase (Decrease)
Sales as Currency Core Sales as Excluding Including Currency
Reported Impact Sales (1) Reported Currency Currency Impact
 
Home Solutions $ 453.1 $ (1.4 ) $ 451.7 $ 449.6 0.5 % 0.8 % 0.3 %
Writing 344.5 1.1 345.6 337.6 2.4 % 2.0 % (0.4 )%
Tools 209.5 5.0 214.5 202.3 6.0 % 3.6 % (2.4 )%
Commercial Products 188.6 0.8 189.4 187.0 1.3 % 0.9 % (0.4 )%
Baby & Parenting 186.2 3.1 189.3 178.7 5.9 % 4.2 % (1.7 )%
Specialty 136.9 1.3 138.2 140.0 (1.3 )% (2.2 )% (0.9 )%
       
Total Company $ 1,518.8 $ 9.9   $ 1,528.7 $ 1,495.2 2.2 % 1.6 % (0.6 )%
 
 
By Geography
 
United States $ 1,022.8 $ - $ 1,022.8 $ 1,000.6 2.2 % 2.2 % 0.0 %
Canada   96.3   (2.6 )   93.7   91.6 2.3 % 5.1 % 2.8 %
Total North America 1,119.1 (2.6 ) 1,116.5 1,092.2 2.2 % 2.5 % 0.3 %
 
Europe, Middle East and Africa 181.2 8.1 189.3 198.1 (4.4 )% (8.5 )% (4.1 )%
Latin America 93.6 3.5 97.1 80.2 21.1 % 16.7 % (4.4 )%
Asia Pacific   124.9   0.9     125.8   124.7 0.9 % 0.2 % (0.7 )%
Total International 399.7 12.5 412.2 403.0 2.3 % (0.8 )% (3.1 )%
       
Total Company $ 1,518.8 $ 9.9   $ 1,528.7 $ 1,495.2 2.2 % 1.6 % (0.6 )%
 
 
(1)- "Core Sales" is determined by applying the prior year monthly exchange rates to the current year local currency monthly sales amounts, with the difference in the current year reported sales and Core Sales representing changes attributable to foreign currency translation, reported in the table as "Currency Impact".
Newell Rubbermaid Inc.
Twelve Months Ended December 31, 2012
In Millions
               
Currency Analysis
 
 
By Segment
 
2012 2011 (1) Year-Over-Year (Decrease) Increase
Sales as Currency Core Sales as Excluding Including Currency
Reported Impact Sales (2) Reported Currency Currency Impact
 
Home Solutions $ 1,644.0 $ 5.0 $ 1,649.0 $ 1,710.2 (3.6 )% (3.9 )% (0.3 )%
Writing 1,416.2 27.3 1,443.5 1,399.3 3.2 % 1.2 % (2.0 )%
Tools 806.1 28.3 834.4 779.6 7.0 % 3.4 % (3.6 )%
Commercial Products 759.7 8.6 768.3 741.5 3.6 % 2.5 % (1.1 )%
Baby & Parenting 736.1 11.1 747.2 680.4 9.8 % 8.2 % (1.6 )%
Specialty 540.6 10.8 551.4 553.6 (0.4 )% (2.3 )% (1.9 )%
       
Total Company $ 5,902.7 $ 91.1 $ 5,993.8 $ 5,864.6   2.2 % 0.6 % (1.6 )%
 
 
By Geography
 
United States $ 4,004.5 $ - $ 4,004.5 $ 3,915.7 2.3 % 2.3 % 0.0 %
Canada   358.8   6.0   364.8   376.3   (3.1 )% (4.7 )% (1.6 )%
Total North America 4,363.3 6.0 4,369.3 4,292.0 1.8 % 1.7 % (0.1 )%
 
Europe, Middle East and Africa 718.4 58.8 777.2 815.3 (4.7 )% (11.9 )% (7.2 )%
Latin America 338.9 26.2 365.1 318.6 14.6 % 6.4 % (8.2 )%
Asia Pacific   482.1   0.1   482.2   438.7   9.9 % 9.9 % 0.0 %
Total International 1,539.4 85.1 1,624.5 1,572.6 3.3 % (2.1 )% (5.4 )%
       
Total Company $ 5,902.7 $ 91.1 $ 5,993.8 $ 5,864.6   2.2 % 0.6 % (1.6 )%
 
(1)- 2011 results have been adjusted to reclassify the results of operations of the hand torch and solder business to discontinued operations.
 
(2)- "Core Sales" is determined by applying the prior year monthly exchange rates to the current year local currency monthly sales amounts, with the difference in the current year reported sales and Core Sales representing changes attributable to foreign currency translation, reported in the table as "Currency Impact".




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