Rubbermaid Posts Profit Jump, Hikes Outlook

NEW YORK (TheStreet -- Newell Rubbermaid (NWL) posted a 14% jump in second-quarter earnings on Thursday, boosted by lower material costs and the discontinuation of less-profitable products.

The better-than-expected results allowed management to raise its full-year outlook, which sent shares up 6% in pre-market trading to $13.02.

The maker of Sharpie pens and Paper Mate earned $105.7 million, or 38 cents a share, compared with $92.5 million, or 33 cents, in the year-ago period.

Excluding one-time items, profit was 47 cents a share, surpassing analysts' estimates of 35 cents.

Sales tumbled 18% to $1.5 billion from $1.83 billion, mostly due to product discontinuations.

In an effort to cut costs, Newell has eliminated jobs, frozen wages, slashed its dividend and even put a pause on some manufacturing to reduce inventory levels.

Rubbermaid now expects full-year earnings in the range of $1.15 to $1.30 a share, up from its prior forecast of $1 to $1.25 a share.

Last week, rival Tupperware ( TUP) reported an 8% decline in second-quarter earnings, but sailed past analysts' expectations.

CEO Rick Goings told TheStreet.com that the company is "less bad" in tough economic times because of its flexible business model.

-- Reported by Jeanine Poggi in New York.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More from Earnings

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

The Winners and Losers in Thursday's Market

The Winners and Losers in Thursday's Market

Micron's Upbeat Guidance Is Getting a Thumbs-Up From Investors

Micron's Upbeat Guidance Is Getting a Thumbs-Up From Investors

3 Killer Stocks Trading at Unfair Discounts

3 Killer Stocks Trading at Unfair Discounts