First quarter sales at Newell Brands were up 4% as the company reported growth in all five product segments. The figures reflect the company’s performance prior to its acquisition of Jarden Corp.
For the period ended March 31, total sales were $1.31 billion, up from sales of $1.26 billion in the comparable quarter the previous year. Normalized net income increased 11% to $107.7 million compared with $97 million in the prior year. Normalized diluted earnings per share increased 11.1% to $0.40 compared with $0.36 in the prior year.
Reported net income decreased 25.1% to $40.5 million compared with $54.1 million in the prior year. Reported diluted earnings per share decreased to $0.15 compared with $0.20 in the prior year. Reported diluted earnings per share were negatively impacted by $49.9 million in interest expense and other acquisition-related costs incurred prior to the closing of the Jarden acquisition offset by lower restructuring and other costs, the company said.
“We delivered these strong results while completing the most transformative transaction in our history,” said Michael Polk, Newell Brands CEO. “The new Newell Brands more than doubles our size in key strategic retailers, channels and geographies. We expect scale to enable accelerated growth over time through broadened channel cross-sell, accelerated international deployment and strengthened category leadership as we extend the best capabilities from both companies across the full portfolio.”
The company’s Home Solutions segment net sales increased 2.1% to $372.1 million, attributable to continued strong beverage growth and the introduction of Rubbermaid FreshWorks and Rubbermaid Fasten&Go, partially offset by continued contraction of the lower margin Rubbermaid consumer storage business.
Normalized operating income in the home solutions segment was $38 million versus $38.6 million in the prior year. Normalized operating margin was 10.2% of sales compared to 10.6% in the prior year as the positive mix effect of Rubbermaid food storage and input cost deflation were more than offset by higher advertising and promotion expenses to support new product launches.