Despite a drop in sales in the second quarter, Newell Brands officials are offering a positive outlook for the company as they raised guidance for net sales and operating cash flow for the remainder of the fiscal year.
For the three months ended June 30, net sales from continuing operations were $2.1 billion, a 3.9% decline from comparable results in the second quarter of 2018. Net income for the quarter was $89.8 million compared with net income of $131.7 million in the comparable quarter the previous year.
“While still early in the organization’s turnaround, we believe our decisive and strategic actions to strengthen our performance will drive further improvement going forward, as we work to transform Newell Brands into a leading next-generation consumer products company,” said Chris Peterson, Newell Brands interim CEO and CFO.
The company also restated guidance for the remainder of the year. Newell officials now forecast annual sales of between $9.1 billion and $9.3 billion, up from previous guidance of $8.2 billion to $8.4 billion. Earnings per share has not changed from previous guidance of $1.50 to $1.65 with operating cash flow now expected to fall between $600 million and $800 million, up from previous guidance of $300 million to $500 million.
By product segment, Food & Appliances had sales of $562 million compared with $620 million in the prior-year period. Company officials said the drop in sales reflected a timing shift in orders from the second quarter to the first quarter and continued challenges in the appliances business.
The Learning & Development segment had sales of $849 million, up $10 million from the previous year, while sales in the Home & Outdoor Living segment were $705 million, a decrease of $37 million from the previous year.
Newell officials also announced that the company is retaining its Rubbermaid Commercial Products business. In addition, the company is also relocating its headquarters to Atlanta in an effort to facilitate a stronger connection between senior leaders and the operations of the business.