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.