Newell Brands continued its momentum in the third quarter, as the company broadened its sales growth across categories as stay-at-home consumer trends benefitted appliances and cookware.
Net sales in the third quarter were $2.7 billion, a 5.1% increase compared to the prior year period, as core sales growth of 7.2% was partially offset by a foreign exchange headwind and divested businesses.
Reported operating income was $363 million compared with an operating loss of $857 million in the prior year period, which reflected the impact of impairment charges.
The company reported net income of $304 million, or $0.71 diluted earnings per share, compared with a net loss of $626 million, or $1.48 diluted loss per share, in the prior year period.
Newell’s appliances and cookware segment generated net sales of $479 million compared with $430 million in the year ago period, reflecting core sales growth of 17% percent, partially offset by the impact of unfavorable foreign exchange. Reported operating income was $32 million compared with a loss of $595 million in the prior year period. Normalized operating income was $35 million, or 7.3 percent of sales, versus $18 million, or 4.2 percent of sales, in the prior year period.
“We delivered very strong third quarter results, including broad-based sales growth underpinned by strong consumption, and significant improvement in operating margin and cash flow generation, as the organization rallied behind our strategic priorities,” said Ravi Saligram, Newell Brands president and CEO. “We are heading into the fourth quarter with a renewed sense of energy as we chase demand in certain high growth categories. We remain laser focused on increasing shareholder value by sustaining growth momentum, driving meaningful innovations that leverage consumer trends, building a competitive edge through omnichannel and significantly reducing organizational complexity.”
In personnel news, Nancy O’Donnell, svp/investor relations and corporate communications, will retire at year-end after 12 years with the company. Following O’Donnell’s retirement, Sofya Tsinis, vp/investor relations, will lead the investor relations function. Tsinis joined the company’s investor relations department four years ago, after a 13-year career in equity research at J.P. Morgan.