Friday October 25th, 2013 - 12:52PM
Newell Rubbermaid reported net sales of $1.49 billion, a 2.1% increase for Q3 2013, as compared with the same period last year. Net sales in the company’s Home Solutions division increased 6.8%, to $431. 4 million.
Newell Rubbermaid attributed the Home Solutions increase to strong customer programming on Rubbermaid, new Levolor product launches and increased distribution of Calphalon. Home Solutions operating income was $66.3 million, or 15.4% of sales, compared with $66.0 million, or 16.3% of sales in the prior year. The decrease in operating margin was driven by increased advertising and promotions expense and negative mix associated with strong Rubbermaid and Levolor growth, offset in part by Project Renewal cost savings.
“Our third quarter results represent an important inflection point in our progress advancing the Growth Game Plan,” said Michael Polk, president and CEO. “Core sales grew 3.3% and normalized EPS grew 10.6% to $0.52. The sequential improvement in our growth rate versus our first half results was driven by core sales growth of over 4% in North America and 35% in Latin America. Successful new product launches, expanded distribution and stronger marketing initiatives delivered market share gains in Baby & Parenting, Home Solutions and Tools. Our growth was supported by increased advertising and promotion spending funded by Project Renewal savings and disciplined discretionary cost management. This is the power of the Growth Game Plan in action.”
The company continues to expect 2013 core sales growth of 2% to 4%, and guidance for the year will remain unchanged.
Reported net income for the quarter was $193.3 million, or $0.66 per diluted share, compared with $108.3 million, or $0.37 per diluted share, in the prior year. The increase was largely due to a gain on the sale of the company’s Hardware business. Normalized net income was $151.6 million, compared with $136.5 million in the prior year.