Fourth quarter revenue at Newell Brands was down as the company reported sales declines in its three key product segments including Food & Appliances.
Company-wide sales for the period ended December 31 were $2.3 billion, down from sales of $2.5 billion in the comparable quarter the previous year. Net income was $208 million compared with net income of $1.7 billion in the fourth quarter of the previous fiscal year. Diluted earnings per share were $0.46 compared with $3.38 in the prior year period.
Michael Polk, Newell president and CEO, said the results reflect “solid progress” in the company’s execution of its Accelerated Transformation Plan (ATP).
“We’ve planned 2019 to be another year of significant portfolio and organization transformation,” Polk said. “We intend to drive the ATP to completion in 2019 and despite the ongoing negative impact of retailer bankruptcies, foreign exchange, inflation and tariffs, we expect to stabilize and then reignite core sales growth, increase margins, and strengthen the operational and financial performance of the company.”
During the fourth quarter, sales in the company’s Food & Appliances segment generated net revenue of $824 million, down from revenue of $888 million in the fourth quarter of the previous year.
Reported operating loss was $19.3 million compared with operating income of $105 million in the prior year period, largely due to the negative impact of the non-cash impairment charge. Reported operating margin was negative 2.3% as compared with 11.8% in the prior year period.
For the full year, the company reported net sales of $8.8 billion, a drop of 9.6% from the prior fiscal year. Net loss for the year was $6.9 billion compared with net income of $2.7 billion. Reported diluted loss per share was $14.60 compared with reported diluted earnings per share of $5.63 in the prior fiscal year.
For fiscal year 2019, the company is forecasting sales of between $8.2 billion and $8.4 billion. The first quarter outlook calls for sales of between $1.66 billion and $1.7 billion.