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Newell Rubbermaid (NYSE: NWL) announced it will reaffirm its fiscal year 2013 outlook, as provided in its fourth quarter 2012 earnings press release dated February 1, 2013, during its presentation today at the Consumer Analyst Group of New York (CAGNY) conference.
The company’s guidance and key assumptions for the full year 2013 are as follows:
Core sales increase of 2 to 4 percent.
Net sales are expected to grow 1 to 3 percent
Currency rates are expected to decrease sales by about 100 basis points
Normalized operating margin improvement of up to 20 basis points
Normalized EPS growth of 5 to 8 percent, or $1.78 to $1.84
The company’s 2013 normalized EPS expectation excludes between $90 and $110 million of restructuring and restructuring-related costs associated with Project Renewal. (A reconciliation to normalized results is included below.)
The company is on track to realize cumulative annualized cost savings of approximately $270 to $325 million by the second quarter of 2015 related to Project Renewal, with cumulative annualized savings of $90 to $100 million expected by the first half of 2013. The company intends to reinvest the majority of Project Renewal savings in the business to strengthen brand building and selling capabilities and accelerate growth.
Operating cash flow of between $575 and $625 million
This operating cash flow guidance includes a U.S. pension plan contribution of approximately $100 million, approximately $50 million higher than the 2012 contribution, and
restructuring and restructuring-related cash payments of approximately $70 to $90 million.
The company plans to fund capital expenditures of $175 to $200 million during the year.
A reconciliation of the 2013 earnings outlook is as follows:
Diluted earnings per share
$1.54 to $1.60
Restructuring and restructuring-related costs
$0.21 to $0.27
$1.78 to $1.84
President and Chief Executive Officer Michael Polk will present today at 3:00 p.m. ET. The presentation will be webcast live and may be accessed through Events & Presentations in the Investor Relations section of the Newell Rubbermaid website at
www.newellrubbermaid.com. The webcast will be archived and available for replay for 30 days.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.