During the second quarter of 2020, Newell Brands continued to experience COVID-19 related disruption to its business. However, the company said it saw top line improvement throughout the quarter, and its appliances and cookware segment remained relatively steady and saw an increase in core sales during the quarter.
Net sales were $2.1 billion, a 14.9% decline compared to the prior year period, reflecting a 12.6% decrease in core sales largely related to the business disruption caused by the global COVID-19 pandemic as well as the unfavorable impact of foreign exchange.
Reported operating income was $163 million compared with operating income of $231 million in the prior year period. The company reported net income of $78 million, or $0.18 diluted earnings per share, compared with net income of $90 million, or $0.21 diluted earnings per share, in the prior year period.
The company’s Appliances & Cookware segment generated net sales of $359 million compared with $362 million in the year ago period, reflecting a 6.1% increase in core sales offset by the headwind from foreign exchange. Reported operating income was $10 million compared with $6 million in the prior year period.
“We are encouraged by the current trends of our business, including top line improvement throughout the quarter, very strong consumption patterns in a number of our categories, and the progress we are making against key tenets of our turnaround plan, despite the challenging operating and economic environment caused by the global coronavirus pandemic,” said Ravi Saligram, Newell Brands president and CEO. “Three of eight business units delivered core growth in the second quarter, e-commerce sales continued to accelerate and the company as a whole delivered modest core sales growth in the month of June. While the macros remain uncertain and difficult, we continue to expect results in the back half of the year to improve relative to the second quarter. We remain confident in our liquidity position and our ability to successfully navigate during these unprecedented times.”
During the second quarter, the company said it also launched a restructuring program to streamline business operations and reduce overhead costs. The company recorded $8 million in charges associated with the program in the second quarter and expects to record aggregate charges of approximately $10 million in 2020.