Following a solid third quarter driven by strong sales in several categories including appliances and writing, Newell Brands raised the lower end of its 2016 full year guidance for core sales and normalized earnings per share.
In an earnings report, the company now expects core sales growth of between 3.5% and 4% (previously 3% to 4%) with normalized earnings per share are now expected to grow between $2.85 to $2.90 (previously $2.75 to $2.90).
For the three-month period ended September 30, net sales were $3.95 billion, up from net sales of $1.53 billion the comparable quarter the prior year. The increase was due primarily to the inclusion of net sales from the Jarden acquisition.
Sales in the company’s consumer solutions division were $650 million, an increase of 7.9% over the same quarter the prior year. Pro forma core sales, which exclude the U.S. heaters, humidifiers, and fans business that is being held for sale, increased 9.3% compared with the prior year, driven by strong growth in North America and Latin America.
Reported operating income was $38 million and reported operating margin was 5.8%, reflecting strong sales growth and fixed cost leverage partially offset by inventory step-up, integration and other costs related to the Jarden transaction. Normalized operating income was $92 million and normalized operating margin was 14.2% of sales.