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ATLANTA, Nov. 26, 2007, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Newell Rubbermaid (NYSE: NWL) today announced that the company believes fourth quarter sales will be essentially flat to those recorded a year ago, and full year sales are expected to increase between 3 percent and 3.5 percent. The previously communicated expectation assumed sales growth of approximately 2 percent for the fourth quarter and about 4 percent for the full year. The company maintained its previous EPS guidance despite softer sales. The recent slowdown in the North American office products retail environment and commensurate inventory reductions taken at key retailers are the main contributors to the change in outlook. The company now expects fourth quarter sales in its Office Products segment to be down high single digits, compared to the previous expectation that sales would be down low single digits.
For the fourth quarter, the company also raised its guidance for gross margin expansion to the range of 200 and 225 basis points driven primarily by improved mix.
"While this inventory correction by North American office retailers poses a near-term challenge, we remain confident in our ability to drive long-term sales growth," said Mark Ketchum, president and chief executive officer of Newell Rubbermaid. "In addition, we continue to make strong progress on improving our profitability driven importantly by healthy gross margin expansion."
All other expectations for the fourth quarter and full year 2007 and full year 2008 remain unchanged. Newell Rubbermaid's fourth quarter and most recent full year 2007 guidance, as well as preliminary outlook for 2008, was originally published as part of the company's third quarter 2007 earnings release, available on the company's Web site, www.newellrubbermaid.com.
A reconciliation of the 2007 and 2008 earnings outlook is as follows:
Q4 2007 FY 2007 FY 2008
Diluted earnings per share
from continuing
operations (as reported): $0.35-$0.37 $1.69-$1.71 $1.53-$1.58
Project Acceleration
restructuring costs: $0.06-$0.12 $0.22-$0.28 $0.38-$0.47
Diluted earnings per share
from continuing
operations (excluding
charges): $0.44-$0.46 $1.94-$1.96 $1.95-$2.00
Tax benefits: $0.00 ($0.15) $0.00
"Normalized" EPS: $0.44-$0.46 $1.79-$1.81 $1.95-$2.00
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.
Caution Concerning Forward-Looking Statements
The statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of Project Acceleration, sales, income/(loss), earnings per share, operating income or gross margin improvements, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "expect," "project," "will," "believes," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail economies; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to implement successfully information technology solutions throughout our organization; our ability to improve productivity and streamline operations; the risks inherent in our foreign operations and those factors listed in the company's most recent quarterly report on Form 10-Q, and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products that touch the lives of people where they work, live and play. The company's strong portfolio of brands includes Sharpie(R), Paper Mate(R), DYMO(R), EXPO(R), Waterman(R), Parker(R), Rolodex(R), IRWIN(R), LENOX(R), BernzOmatic(R), Rubbermaid(R), Levolor(R), Graco(R), Calphalon(R) and Goody(R). The company, with sales of approximately $6 billion, is headquartered in Atlanta, Ga., and employs approximately 22,500 employees worldwide.
This press release and additional information about the company are available on the company's Web site www.newellrubbermaid.com.
NWL-EA
SOURCE Newell Rubbermaid Inc.
http://www.newellrubbermaid.com
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