Third Quarter Executive Summary
- Third quarter 2012 net sales were $1.54 billion, a decrease of 0.9 percent versus prior year results.
- Core sales, which exclude the impact of changes in foreign currency translation, grew 1.5 percent.
- Normalized diluted earnings per share were $0.47 compared with $0.45 in the prior year period; reported diluted earnings per share were $0.37 compared with a loss of $0.61 in the year-ago period.
- Operating cash flow in the quarter was $301.5 million, an improvement of $6.2 million compared with the year-ago period.
- The company announced a 50 percent quarterly dividend increase from $0.10 to $0.15, effective in the fourth quarter of 2012, bringing the payout ratio to the high end of the targeted range of 30 to 35 percent.
- The company repurchased 1.5 million shares at a cost of $25.9 million.
- The company reaffirmed its 2012 guidance for core sales growth in a range from 2 to 3 percent, normalized operating margin improvement of up to 20 basis points, normalized earnings per share of $1.63 to $1.69 and operating cash flow of $550 to $600 million.
- The company announced an expansion of its Project Renewal restructuring program. The expansion is expected to generate incremental annualized cost savings of approximately $180 to $225 million when fully implemented by the end of the second quarter of 2015. The majority of these savings will be reinvested in the business to strengthen brand building and selling capabilities in priority markets around the world. The company expects to incur incremental cash costs of $225 to $250 million and record pretax restructuring charges in the range of $250 to $275 million over the same period.