Third quarter revenue at Newell Brands was down but higher than expected operating margin, earnings per share and operating cash flow led the company to raise its full-year guidance.
Net sales for the quarter ended September 30 were $2.45 billion, down 3.8% from the comparable quarter the previous year. The company reported a net loss of $626 million, or $1.48 diluted loss per share, compared with a net loss of $7.3 billion, or $15.52 diluted loss per share, in the prior-year period.
The Appliances & Cookware segment generated net sales of $430 million compared with $454 million in the prior-year period, due to the impact of unfavorable foreign exchange and a core sales decrease of 3.7%.
Reported operating loss was $595 million compared with a loss of $1.6 billion in the third quarter of 2018.
Ravi Saligram, Newell’s new president and CEO, said, “We will create a laser focus on driving sustainable, profitable organic growth through clarity and stability of direction, developing actionable insights that pave the way for meaningful innovation, enhancing the digital IQ of our businesses, reducing complexity and focusing the organization externally on delighting the consumer and customer.”
The company also said it is ending its divestiture program and will retain the Mapa/Spontex and Quickie businesses, which had been classified as held for sale and discontinued operations through the third quarter of 2019. The retention of these businesses is expected to be accretive to net sales, operating margins, earnings per share and operating cash flow in 2020 and future years, according to the company.
In restating guidance, Newell officials now expect full-year sales of between $9.6 billion and $9.7 billion, up from previous guidance of $9.1 billion to $9.3 billion. Earnings per share are now expected to be between $1.63 to $1.68 per share up from previous guidance of $1.50 to $1.65 per share.