Sales Growth Above Guidance, Normalized EPS at High End of
Expectations ATLANTA, July 31, 2008 /PRNewswire-FirstCall/ --
Newell Rubbermaid (NYSE: NWL) today announced its second quarter
2008 financial results. Net sales grew 7.8 percent to $1.83 billion
in the second quarter, compared to $1.69 billion in the prior year.
The acquisitions of Technical Concepts and Aprica contributed 4.6
percent. Internal sales growth, which excludes the effect of
significant acquisitions, was 3.2 percent. Double-digit increases
in the Rubbermaid Commercial, Rubbermaid Food and European and Asia
Pacific Office Products businesses, as well as high single digit
growth in the Baby & Parenting Essentials business, led the
sales improvement, offsetting declines in the North American Office
Products, Tools & Hardware and Decor businesses. Foreign
currency contributed 2.9 percent. "We were pleased to deliver
second quarter results in line with expectations despite
significant cost inflation and a challenging U.S. economy," said
Mark Ketchum, president and chief executive officer of Newell
Rubbermaid. "Looking forward, we are taking decisive action to
strengthen our portfolio and protect the company's margins and
profitability. These previously announced initiatives include
aggressive pricing increases and the restructuring of our product
portfolio to reduce exposure to commodity-like product lines. In
addition, we will continue our strategy of investing in innovation
and brand building. We are confident that these actions will
position Newell Rubbermaid as a stronger, less volatile and more
profitable company and will enhance long-term shareholder value."
Gross margin during the second quarter was 34.1 percent, down 160
basis points from last year, as higher productivity, savings from
Project Acceleration and favorable pricing were more than offset by
significant increases in cost inflation. Excluding Project
Acceleration restructuring costs and related impairment charges of
$69.4 million in 2008 and $15.5 million in 2007, operating income
was $230.3 million, compared to $248.3 million in the prior year,
reflecting the impact of higher cost inflation and the company's
continued investment in strategic brand building activities and
corporate initiatives. Normalized earnings, which exclude Project
Acceleration restructuring costs and related impairment charges,
were $0.49 per diluted share, consistent with the company's
guidance and down 12 percent to last year's normalized EPS of
$0.55. (A reconciliation of the results "as reported" to results
"excluding charges" is included below.) Income from continuing
operations, as reported, was $92.5 million, or $0.33 per diluted
share, compared to $143.2 million, or $0.51 per diluted share, in
the prior year. Operating cash flow was $1.9 million, compared to
$158.3 million for the prior year. The difference was largely
attributable to timing of cash payments and lower net income.
Capital expenditures were $38.2 million in the second quarter,
compared to $36.4 million for the prior year. A reconciliation of
the second quarter 2008 and last year's results is as follows: Q2
2008 Q2 2007 Diluted earnings per share from continuing operations
(as reported): $0.33 $0.51 Project Acceleration restructuring costs
$0.16 $0.04 Diluted earnings per share from continuing operations
(excluding charges): $0.49 $0.55 One-time event - - "Normalized"
EPS: $0.49 $0.55 Six Months Results Net sales for the six months
ended June 30, 2008 grew 5.9 percent to $3.26 billion, compared to
$3.08 billion in the prior year. The acquisitions of Technical
Concepts and Aprica together contributed 2.5 percent of sales
growth. Internal sales growth, which excludes the effect of
significant acquisitions, was 3.4 percent for the six months.
Double-digit increases in the Rubbermaid Commercial, Rubbermaid
Food and European and Asia Pacific Office Products businesses and
high single digit growth in the Home & Family segment led the
sales improvement, offsetting declines in the North American Office
Products and Decor businesses. Foreign currency contributed 3.1
percent. Gross margin was 34.2 percent, a 90 basis point decline
versus prior year results, primarily as a result of dramatically
higher cost inflation. Normalized earnings, which exclude Project
Acceleration restructuring costs and related impairment charges and
one-time tax benefits, were $0.76 per share, as compared with the
prior year's result of $0.83 per share. (A reconciliation of the
results "as reported" to results "excluding charges" is included
below.) Income from continuing operations, as reported, was $149.9
million, or $0.54 per share, compared to $208.3 million, or $0.75
per share, in the prior year. Net cash used in operating activities
was $121.3 million, compared to a source of $172.8 million in the
prior year. Capital expenditures were $78.2 million, compared to
$69.0 million for the prior year. A reconciliation of the first six
months 2008 and last year's results is as follows: YTD Q2 2008 YTD
Q2 2007 Diluted earnings per share from continuing operations (as
reported) $0.54 $0.75 Project Acceleration restructuring costs
$0.22 $0.09 Diluted earnings per share from continuing operations
(excluding charges) $0.76 $0.84 Tax benefits - ($0.01) "Normalized"
EPS: $0.76 $0.83 2008 Full Year Guidance The company reiterated its
guidance for net sales growth of between six and eight percent for
the full year, including the impact of the Technical Concepts and
Aprica acquisitions. Internal sales growth, which excludes the
effect of significant acquisitions, continues to be projected at
between two and four percent for the full year, in large part
driven by stronger foreign currency in combination with internal
sales growth in the Rubbermaid Commercial and Rubbermaid Food
businesses and the Home & Family segment. The impact of
recently announced pricing initiatives will be largely offset by
anticipated volume declines related to the exiting of certain
product lines. Due to dramatic increases in raw material and
sourced finished goods inflation, which are expected to more than
offset pricing, ongoing productivity improvements and Project
Acceleration savings, the company now anticipates gross margin will
contract 100 to 175 basis points versus last year. The company
remains committed to increasing its investment in strategic brand
building and corporate initiatives. Consistent with the guidance
provided in its July 15 press release, the company expects
normalized earnings of between $1.40 and $1.60 per diluted share.
As a result primarily of lower net income and the timing of certain
working capital items, operating cash flow is now expected to be
between $350 million and $400 million for the full year, compared
to previous guidance of between $600 million and $650 million. This
guidance reflects the company's expectation of a significant
improvement in cash flow in the back half of the year compared with
the first six months of 2008 due to seasonality of the business and
planned actions to reduce working capital. The cash flow guidance
provided assumes approximately $80 million in restructuring cash
payments. Capital expenditures projections are unchanged at $160 to
$180 million. 2008 Third Quarter Guidance For the third quarter,
the company anticipates net sales growth of between six and seven
percent and internal sales growth of two to four percent, driven
primarily by the impact of favorable foreign currency and continued
strength in Rubbermaid Commercial, Rubbermaid Food, our
international businesses and the Home & Family segment. The
company expects to generate normalized earnings in a range from
$0.31 to $0.35 per diluted share, as compared with $0.52 last year.
The expected decline is a result of higher cost inflation in raw
materials and sourced products, and continued investment in
strategic initiatives. A reconciliation of the third quarter and
full year 2008 earnings outlook is as follows: Q3 2008 FY 2008
Diluted earnings per share from continuing operations (as
reported): $0.11 - $0.15 $0.78 - $0.91 Project Acceleration
restructuring costs $0.05 to $0.09 $0.46 to $0.59 Diluted earnings
per share from continuing operations (excluding charges): $0.18 -
$0.22 $1.27 - $1.47 One-time event $0.13 $0.13 "Normalized" EPS:
$0.31 - $0.35 $1.40 - $1.60 "One-time event" reflects the net of
tax impact of the company's third quarter purchase of a call option
with respect to its $250 million of 6.35% Reset notes due 2028 for
approximately $52 million. The call option holder had the right to
remarket these notes in July 2008 and again in July 2018. The
company utilized its commercial paper program to fund the purchase
of the call option and the redemption of the notes in order to
pursue more favorable financing terms. Conference Call The
company's second quarter 2008 earnings conference call is scheduled
for today, July 31, 2008, at 9:00 a.m. ET. To listen to the
webcast, use the link provided under Events & Presentations in
the Investor Relations section of Newell Rubbermaid's Web site at
http://www.newellrubbermaid.com/. The webcast will be available for
replay for two weeks. A brief supporting slide presentation will be
available prior to the call under Quarterly Earnings in the
Investor Relations section on the company's Web site. Caution
Concerning Forward-Looking Statements The statements in this press
release that are not historical in nature constitute
forward-looking statements. These forward-looking statements relate
to information or assumptions about the effects of Project
Acceleration, sales, income/(loss), earnings per share, operating
income or gross margin improvements or declines, capital and other
expenditures, cash flow, dividends, restructuring costs, costs and
cost savings, inflation, particularly with respect to commodities
such as oil and resin, debt ratings, and management's plans,
projections and objectives for future operations and performance.
These statements are accompanied by words such as "anticipate,"
"expect," "project," "will," "believe," "estimate" and similar
expressions. Actual results could differ materially from those
expressed or implied in the forward-looking statements. Important
factors that could cause actual results to differ materially from
those suggested by the forward-looking statements include, but are
not limited to, our dependence on the strength of retail economies;
competition with other manufacturers and distributors of consumer
products; major retailers' strong bargaining power; changes in the
prices of raw materials and sourced products; our ability to
develop innovative new products and to develop, maintain and
strengthen our end-user brands; our ability to expeditiously close
facilities and move operations while managing foreign regulations
and other impediments; our ability to implement successfully
information technology solutions throughout our organization; our
ability to improve productivity and streamline operations; our
ability to refinance short term debt on terms acceptable to us; the
risks inherent in our foreign operations and those factors listed
in the company's most recent quarterly report on Form 10-Q, and
Exhibit 99.1, filed with the Securities and Exchange Commission.
Changes in such assumptions or factors could produce significantly
different results. The information contained in this news release
is as of the date indicated. The company assumes no obligation to
update any forward-looking statements contained in this news
release as a result of new information or future events or
developments. Non-GAAP Financial Measures This release contains
non-GAAP financial measures within the meaning of Regulation G
promulgated by the Securities and Exchange Commission. Included in
this release is a reconciliation of these non-GAAP financial
measures to the most directly comparable financial measures
calculated in accordance with GAAP. About Newell Rubbermaid Newell
Rubbermaid Inc., an S&P 500 company, is a global marketer of
consumer and commercial products with sales of over $6 billion and
a strong portfolio of brands, including Rubbermaid(R), Sharpie(R),
Graco(R), Calphalon(R), Irwin(R), Lenox(R), Levolor(R), Paper
Mate(R), Dymo(R), Waterman(R), Parker(R), Goody(R), BernzOmatic(R)
and Amerock(R). The company is headquartered in Atlanta, Ga., and
has approximately 22,500 employees worldwide. This press release
and additional information about Newell Rubbermaid are available on
the company's Web site, http://www.newellrubbermaid.com/ . NWL-EA
Newell Rubbermaid Inc. CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (in millions, except per share data) Reconciliation of
Results "As Reported" to Results "Excluding Charges" Three Months
Ended June 30, 2008 As Reported Charges(1) Excl. Charges Net sales
$1,825.1 $- $1,825.1 Cost of products sold 1,201.9 - 1,201.9 GROSS
MARGIN 623.2 - 623.2 % of sales 34.1% 34.1% Selling, general &
administrative expenses 392.9 - 392.9 % of sales 21.5% 21.5%
Restructuring costs 69.4 (69.4) - OPERATING INCOME 160.9 69.4 230.3
% of sales 8.8% 12.6% Nonoperating expenses: Interest expense, net
38.7 - 38.7 Other expense, net 0.8 - 0.8 39.5 - 39.5 INCOME BEFORE
INCOME TAXES 121.4 69.4 190.8 % of sales 6.7% 10.5% Income taxes
28.9 25.5 54.4 Effective rate 23.8% 28.5% INCOME FROM CONTINUING
OPERATIONS 92.5 43.9 136.4 % of sales 5.1% 7.5% Discontinued
operations, net of tax: Net loss - - - NET INCOME $92.5 $43.9
$136.4 % of sales 5.1% 7.5% EARNINGS PER SHARE FROM CONTINUING
OPERATIONS: Basic $0.33 $0.16 $0.49 Diluted $0.33 $0.16 $0.49 LOSS
PER SHARE FROM DISCONTINUED OPERATIONS: Basic $- $- $- Diluted $-
$- $- EARNINGS PER SHARE: Basic $0.33 $0.16 $0.49 Diluted $0.33
$0.16 $0.49 AVERAGE SHARES OUTSTANDING: Basic 277.1 277.1 Diluted
278.2 286.5 Three Months Ended June 30, 2007 As Excl. YOY Reported
Charges(2) Charges % Change Net sales $1,693.1 $- $1,693.1 7.8%
Cost of products sold 1,087.5 - 1,087.5 GROSS MARGIN 605.6 - 605.6
2.9% % of sales 35.8% 35.8% Selling, general & administrative
expenses 357.3 - 357.3 10.0% % of sales 21.1% 21.1% Restructuring
costs 15.5 (15.5) - OPERATING INCOME 232.8 15.5 248.3 (7.2)% % of
sales 13.7% 14.7% Nonoperating expenses: Interest expense, net 27.5
- 27.5 Other expense, net 1.5 - 1.5 29.0 - 29.0 36.2% INCOME BEFORE
INCOME TAXES 203.8 15.5 219.3 (13.0)% % of sales 12.0% 13.0% Income
taxes 60.6 4.1 64.7 (15.9)% Effective rate 29.7% 29.5% INCOME FROM
CONTINUING OPERATIONS 143.2 11.4 154.6 (11.8)% % of sales 8.5% 9.1%
Discontinued operations, net of tax: Net loss (1.0) 1.0 - NET
INCOME $142.2 $12.4 $154.6 (11.8)% % of sales 8.4% 9.1% EARNINGS
PER SHARE FROM CONTINUING OPERATIONS: Basic $0.52 $0.04 $0.56
Diluted $0.51 $0.04 $0.55 LOSS PER SHARE FROM DISCONTINUED
OPERATIONS: Basic $(0.00) $0.00 $- Diluted $0.00 $(0.00) $-
EARNINGS PER SHARE: Basic $0.52 $0.04 $0.56 Diluted $0.51 $0.04
$0.55 AVERAGE SHARES OUTSTANDING: Basic 276.0 276.0 Diluted 286.1
286.1 (1) Charges excluded from "as reported" results for 2008
consist of $69.4 million of restructuring costs, including
impairment charges, and the associated tax effects. (2) Charges
excluded from "as reported" results for 2007 consist of $15.5
million of restructuring costs, including impairment charges, and
the associated tax effects and a $1.0 million net loss related to
discontinued operations. Newell Rubbermaid Inc. CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share
data) Reconciliation of Results "As Reported" to Results "Excluding
Charges" Six Months Ended June 30, 2008 As Reported Charges(1)
Excl. Charges Net sales $3,258.8 $- $3,258.8 Cost of products sold
2,145.1 - 2,145.1 GROSS MARGIN 1,113.7 - 1,113.7 % of sales 34.2%
34.2% Selling, general & administrative expenses 753.9 - 753.9
% of sales 23.1% 23.1% Restructuring costs 87.8 (87.8) - OPERATING
INCOME 272.0 87.8 359.8 % of sales 8.3% 11.0% Nonoperating
expenses: Interest expense, net 64.5 - 64.5 Other expense, net 1.0
- 1.0 65.5 - 65.5 INCOME BEFORE INCOME TAXES 206.5 87.8 294.3 % of
sales 6.3% 9.0% Income taxes 56.6 27.3 83.9 Effective rate 27.4%
28.5% INCOME FROM CONTINUING OPERATIONS 149.9 60.5 210.4 % of sales
4.6% 6.5% Discontinued operations, net of tax: Net loss (0.5) 0.5 -
NET INCOME $149.4 $61.0 $210.4 % of sales 4.6% 6.5% EARNINGS PER
SHARE FROM CONTINUING OPERATIONS: Basic $0.54 $0.22 $0.76 Diluted
$0.54 $0.22 $0.76 LOSS PER SHARE FROM DISCONTINUED OPERATIONS:
Basic $(0.00) $0.00 $- Diluted $(0.00) $0.00 $- EARNINGS PER SHARE:
Basic $0.54 $0.22 $0.76 Diluted $0.54 $0.22 $0.76 AVERAGE SHARES
OUTSTANDING: Basic 277.0 277.0 Diluted 278.2 278.2 Six Months Ended
June 30, 2007 As Excl. YOY Reported Charges(2) Charges % Change Net
sales $3,077.5 $- $3,077.5 5.9% Cost of products sold 1,997.2 -
1,997.2 GROSS MARGIN 1,080.3 - 1,080.3 3.1% % of sales 35.1% 35.1%
Selling, general & administrative expenses 695.7 - 695.7 8.4% %
of sales 22.6% 22.6% Restructuring costs 31.0 (31.0) - OPERATING
INCOME 353.6 31.0 384.6 (6.4)% % of sales 11.5% 12.5% Nonoperating
expenses: Interest expense, net 54.9 - 54.9 Other expense, net 2.3
- 2.3 57.2 - 57.2 14.5% INCOME BEFORE INCOME TAXES 296.4 31.0 327.4
(10.1)% % of sales 9.6% 10.6% Income taxes 88.1 6.7 94.8 (11.5)%
Effective rate 29.7% 29.0% INCOME FROM CONTINUING OPERATIONS 208.3
24.3 232.6 (9.5)% % of sales 6.8% 7.6% Discontinued operations, net
of tax: Net loss (16.8) 16.8 - NET INCOME $191.5 $41.1 $232.6
(9.5)% % of sales 6.2% 7.6% EARNINGS PER SHARE FROM CONTINUING
OPERATIONS: Basic $0.75 $0.09 $0.84 Diluted $0.75 $0.09 $0.84 LOSS
PER SHARE FROM DISCONTINUED OPERATIONS: Basic $(0.06) $0.06 $-
Diluted $(0.06) $0.06 $- EARNINGS PER SHARE: Basic $0.69 $0.15
$0.84 Diluted $0.69 $0.15 $0.84 AVERAGE SHARES OUTSTANDING: Basic
275.9 275.9 Diluted 277.9 277.9 (1) Charges excluded from "as
reported" results for 2008 consist of $87.8 million of
restructuring costs, including impairment charges, and the
associated tax effects and a $0.5 million net loss related to
discontinued operations. (2) Charges excluded from "as reported"
results for 2007 consist of $31.0 million of restructuring costs,
including impairment charges, and the associated tax effects and a
$16.8 million net loss related to discontinued operations. Newell
Rubbermaid Inc. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in
millions) June 30, June 30, Assets: 2008 2007 Cash and cash
equivalents $211.4 $162.8 Accounts receivable, net 1,312.7 1,215.3
Inventories, net 1,141.3 973.5 Deferred income taxes 109.6 96.5
Prepaid expenses and other 137.1 138.9 Total Current Assets 2,912.1
2,587.0 Property, plant and equipment, net 675.3 707.3 Goodwill
3,087.1 2,496.8 Other intangible assets, net 657.0 483.5 Other
assets 232.1 229.0 Total Assets $7,563.6 $6,503.6 Liabilities and
Stockholders' Equity: Accounts payable $656.8 $638.5 Accrued
compensation 108.4 122.3 Other accrued liabilities 822.2 663.8
Income taxes payable 12.0 0.7 Notes payable 28.0 21.4 Current
portion of long-term debt 1,065.8 2.2 Total Current Liabilities
2,693.2 1,448.9 Long-term debt 1,959.8 2,232.2 Deferred income
taxes 1.4 20.2 Other non-current liabilities 605.8 777.0
Stockholders' Equity 2,303.4 2,025.3 Total Liabilities and
Stockholders' Equity $7,563.6 $6,503.6 Newell Rubbermaid Inc.
CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (in millions) Six
Months Ended June 30, 2008 2007 Operating Activities: Net income
$149.4 $191.5 Adjustments to reconcile net income to net cash (used
in) provided by operating activities: Depreciation and amortization
91.0 92.4 Deferred income taxes 29.1 41.7 Non-cash restructuring
costs 46.4 6.4 Gain on sale of assets - (0.8) Stock-based
compensation expense 16.9 18.5 Loss on disposal of discontinued
operations 0.5 16.6 Non-cash income tax benefits - (1.9) Other 0.8
(2.4) Changes in operating assets and liabilities, excluding the
effects of acquisitions: Accounts receivable (87.7) (79.9)
Inventories (132.8) (102.9) Accounts payable (8.4) 82.3 Accrued
liabilities and other (224.6) (88.7) Discontinued operations (1.9)
- Net cash (used in) provided by operating activities $(121.3)
$172.8 Investing Activities: Acquisitions, net of cash acquired
$(644.1) $(49.5) Capital expenditures (78.2) (69.0) Disposals of
non-current assets and sales of businesses 0.5 (2.8) Net cash used
in investing activities $(721.8) $(121.3) Financing Activities:
Proceeds from issuance of debt, net of debt issuance costs $919.7
$353.4 Payments on notes payable and debt (81.7) (345.0) Cash
dividends (117.4) (117.3) Proceeds from exercised stock options and
other 0.2 16.6 Net cash provided by (used in) financing activities
$720.8 $(92.3) Currency rate effect on cash and cash equivalents
$4.5 $2.6 Decrease in cash and cash equivalents $(117.8) $(38.2)
Cash and cash equivalents at beginning of period 329.2 201.0 Cash
and cash equivalents at end of period $211.4 $162.8 Newell
Rubbermaid Inc. Calculation of Free Cash Flow (1) Three Months
Ended June 30, Free Cash Flow (in millions): 2008 2007 Net cash
provided by operating activities $1.9 $158.3 Capital expenditures
(38.2) (36.4) Free Cash Flow $(36.3) $121.9 Six Months Ended June
30, Free Cash Flow (in millions): 2008 2007 Net cash (used in)
provided by operating activities $(121.3) $172.8 Capital
expenditures (78.2) (69.0) Free Cash Flow $(199.5) $103.8 (1) Free
Cash Flow is defined as cash flow provided by operating activities
less capital expenditures. Newell Rubbermaid Inc. Financial
Worksheet (In Millions) 2008 Excluding Charges Reconciliation (1)
Exclu- Ex Opera- Reported ded Charges ting Net Sales OI Charges OI
Margin Q1: Cleaning, Organization & Decor $464.7 $48.1 $- $48.1
10.4% Office Products 421.7 34.5 - 34.5 8.2% Tools & Hardware
290.3 35.1 - 35.1 12.1% Home & Family 257.0 30.6 - 30.6 11.9%
Restructuring Costs (18.4) 18.4 - Corporate (18.8) - (18.8) Total
$1,433.7 $111.1 $18.4 $129.5 9.0% 2007 Excluding Charges
Reconciliation (1) Exclu- Ex Opera- Reported ded Charges ting Net
Sales OI Charges OI Margin Q1: Cleaning, Organization & Decor
$457.4 $57.2 $- $57.2 12.5% Office Products 406.3 35.2 - 35.2 8.7%
Tools & Hardware 293.9 34.2 - 34.2 11.6% Home & Family
226.8 30.4 - 30.4 13.4% Restructuring Costs (15.5) 15.5 - Corporate
(20.7) - (20.7) Total $1,384.4 $120.8 $15.5 $136.3 9.8%
Year-over-year changes Net Sales Operating Income(2) $ % $ % Q1:
Cleaning, Organization & Decor $7.3 1.6% $(9.1) (15.9)% Office
Products 15.4 3.8% (0.7) (2.0)% Tools & Hardware (3.6) (1.2)%
0.9 2.6% Home & Family 30.2 13.3% 0.2 0.7% Restructuring Costs
- 0.0% Corporate 1.9 9.2% Total $49.3 3.6% $(6.8) (5.0)% 2008
Excluding Charges Reconciliation (1) Exclu- Ex Opera- Reported ded
Charges ting Net Sales OI Charges OI Margin Q2: Cleaning,
Organization & Decor $609.9 $74.5 $- $74.5 12.2% Office
Products 612.9 102.6 - 102.6 16.7% Tools & Hardware 322.3 46.7
- 46.7 14.5% Home & Family 280.0 27.7 - 27.7 9.9% Restructuring
Costs (69.4) 69.4 - Corporate (21.2) - (21.2) Total $1,825.1 $160.9
$69.4 $230.3 12.6% 2007 Excluding Charges Reconciliation (1) Exclu-
Ex Opera- Reported ded Charges ting Net Sales OI Charges OI Margin
Q2: Cleaning, Organization & Decor $544.4 $81.2 $- $81.2 14.9%
Office Products 587.5 109.0 - 109.0 18.6% Tools & Hardware
324.6 47.7 - 47.7 14.7% Home & Family 236.6 31.3 - 31.3 13.2%
Restructuring Costs (15.5) 15.5 - Corporate (20.9) - (20.9) Total
$1,693.1 $232.8 $15.5 $248.3 14.7% Year-over-year changes Net Sales
Operating Income(2) $ % $ % Q2: Cleaning, Organization & Decor
$65.5 12.0% $(6.7) (8.3)% Office Products 25.4 4.3% (6.4) (5.9)%
Tools & Hardware (2.3) (0.7)% (1.0) (2.1)% Home & Family
43.4 18.3% (3.6) (11.5)% Restructuring Costs - 0.0% Corporate (0.3)
(1.4)% Total $132.0 7.8% $(18.0) (7.2)% 2008 Excluding Charges
Reconciliation (1) Exclu- Ex Opera- Reported ded Charges ting Net
Sales OI Charges OI Margin YTD: Cleaning, Organization & Decor
$1,074.6 $122.6 $- $122.6 11.4% Office Products 1,034.6 137.1 -
137.1 13.3% Tools & Hardware 612.6 81.8 - 81.8 13.4% Home &
Family 537.0 58.3 - 58.3 10.9% Restructuring Costs (87.8) 87.8 -
Corporate (40.0) - (40.0) Total $3,258.8 $272.0 $87.8 $359.8 11.0%
2007 Excluding Charges Reconciliation (1) Exclu- Ex Opera- Reported
ded Charges ting Net Sales OI Charges OI Margin YTD: Cleaning,
Organization & Decor $1,001.8 $138.4 $- $138.4 13.8% Office
Products 993.8 144.2 - 144.2 14.5% Tools & Hardware 618.5 81.9
- 81.9 13.2% Home & Family 463.4 61.7 - 61.7 13.3%
Restructuring Costs (31.0) 31.0 - Corporate (41.6) - (41.6) Total
$3,077.5 $353.6 $31.0 $384.6 12.5% Year-over-year changes Operating
Income Net Sales (2) $ % $ % YTD: Cleaning, Organization &
D�cor $72.8 7.3% $(15.8) (11.4)% Office Products 40.8 4.1% (7.1)
(4.9)% Tools & Hardware (5.9) (1.0)% (0.1) (0.1)% Home &
Family 73.6 15.9% (3.4) (5.5)% Restructuring Costs - 0.0% Corporate
1.6 3.8% Total $181.3 5.9% $(24.8) (6.4)% (1) Charges are related
to restructuring. (2) Excluding restructuring charges. Newell
Rubbermaid Inc. Three Months Ended June 30, 2008 In Millions
Currency Analysis By Segment 2008 2007 Sales as Currency Adjusted
Sales as Reported Impact Sales Reported Cleaning, Organization
& Decor $609.9 $(7.4) $602.5 $544.4 Office Products 612.9
(25.5) 587.4 587.5 Tools & Hardware 322.3 (10.6) 311.7 324.6
Home & Family 280.0 (4.8) 275.2 236.6 Total Company $1,825.1
$(48.3) $1,776.8 $1,693.1 By Geography United States $1,247.6 $-
$1,247.6 $1,236.3 Canada 116.6 (9.6) 107.0 112.7 North America
1,364.2 (9.6) 1,354.6 1,349.0 Europe 288.8 (29.6) 259.2 221.4
Central & South America 71.4 (4.7) 66.7 68.1 All Other 100.7
(4.4) 96.3 54.6 Total Company $1,825.1 $(48.3) $1,776.8 $1,693.1 By
Segment Year-over-year Increase (Decrease) Excluding Including
Currency Currency Currency Impact Cleaning, Organization &
Decor 10.7% 12.0% 1.4% Office Products (0.0)% 4.3% 4.3% Tools &
Hardware (4.0)% (0.7)% 3.3% Home & Family 16.3% 18.3% 2.0%
Total Company 4.9% 7.8% 2.9% By Geography United States 0.9% 0.9%
0.0% Canada (5.1)% 3.5% 8.5% North America 0.4% 1.1% 0.7% Europe
17.1% 30.4% 13.4% Central & South America (2.1)% 4.8% 6.9% All
Other 76.4% 84.4% 8.1% Total Company 4.9% 7.8% 2.9% Newell
Rubbermaid Inc. Six Months Ended June 30, 2008 In Millions Currency
Analysis By Segment 2008 2007 Sales as Currency Adjusted Sales as
Reported Impact Sales Reported Cleaning, Organization & Decor
$1,074.6 $(16.1) $1,058.5 $1,001.8 Office Products 1,034.6 (46.2)
988.4 993.8 Tools & Hardware 612.6 (22.3) 590.3 618.5 Home
& Family 537.0 (9.7) 527.3 463.4 Total Company $3,258.8 $(94.3)
$3,164.5 $3,077.5 By Geography United States $2,246.0 $- $2,246.0
$2,256.2 Canada 205.7 (22.7) 183.0 191.8 North America 2,451.7
(22.7) 2,429.0 2,448.0 Europe 516.4 (52.2) 464.2 413.9 Central
& South America 132.6 (9.5) 123.1 116.7 All Other 158.1 (9.9)
148.2 98.9 Total Company $3,258.8 $(94.3) $3,164.5 $3,077.5 By
Segment Year-over-year Increase Excluding Including Currency
Currency Currency Impact Cleaning, Organization & Decor 5.7%
7.3% 1.6% Office Products (0.5)% 4.1% 4.6% Tools & Hardware
(4.6)% (1.0)% 3.6% Home & Family 13.8% 15.9% 2.1% Total Company
2.8% 5.9% 3.1% By Geography United States (0.5)% (0.5)% 0.0% Canada
(4.6)% 7.2% 11.8% North America (0.8)% 0.2% 0.9% Europe 12.2% 24.8%
12.6% Central & South America 5.5% 13.6% 8.1% All Other 49.8%
59.9% 10.0% Total Company 2.8% 5.9% 3.1% DATASOURCE: Newell
Rubbermaid Inc. CONTACT: Nancy O'Donnell, Vice President, Investor
Relations, +1-770- 407-3663, or David Doolittle, Vice President,
Corporate Communications, +1- 770-407-3613, both of Newell
Rubbermaid Inc. Web site: http://www.newellco.com/ Company News
On-Call: http://www.prnewswire.com/comp/138728.html
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