Newell's Sunbeam Recalls Crockpots for Burn Risks

Newell's Sunbeam recalled certain crockpots because of a burn risk.
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The Sunbeam Products division of Newell Brands  (NWL) - Get Report will recall its Crock-Pot 6-Quart Express Crock Multi-Cookers because of burn risks, the Consumer Product Safety Commission said.

“The recalled Crock-Pot multi-cooker can pressurize when the lid is not fully locked,” the CPSC said. 

“This can cause the lid to suddenly detach while the product is in use, posing burn risks to consumers from hot food and liquids ejected from the product.”

Sunbeam must give consumers replacements. The ruling applies to 914,430 units sold in the U.S. and 28,330 sold in Canada.

Consumer-goods seller Newell shares recently traded at $21.25, down 1%. They have gained 12% so far this year, benefiting from strong demand for consumer appliances as people have cooked at home during the coronavirus pandemic.

Last month Newell posted better-than-expected earnings along with a stronger-than-expected outlook.

Newell swung to profit of $304 million, or 71 cents a share, in the third quarter from a loss of $626 million, or $1.48 a share, in the year-ago period.

Adjusted profit was 84 cents a share, compared with 73 cents. Revenue rose 5.1% to $2.7 billion from $2.57 billion.

A survey of analysts by FactSet produced consensus estimates of third-quarter GAAP earnings of 36 cents a share, or an adjusted 43 cents, on revenue of $2.48 billion.

Sales from the appliances and cookware segment rose 17% to $479 million from $430 million a year earlier, offset partly by the impact of unfavorable foreign exchange.

Broad-based sales growth was "underpinned by strong consumption," and operating margin and cash-flow generation improved significantly, President and Chief Executive Ravi Saligram said in a statement.