UPDATE: Newell Rubbermaid Posts Upbeat Q3 Earnings

Newell Rubbermaid

reported upbeat earnings for the third quarter. The Atlanta, Georgia-based company reported a quarterly profit of $122.3 million, or $0.44 per share, versus a year-ago profit of $193.3 million, or $0.66 per share. Excluding special items, the company's earnings surged to $0.58 per share from $0.52 per share. Its sales gained to $1.48 billion versus $1.47 billion. However, analysts were projecting earnings of $0.55 per share on revenue of $1.53 billion. Writing net sales rose 2.5% y/y to $453.2 million in the quarter, while Home Solutions net sales fell 1.4% to $417.0 million. Tools net sales gained 2% to $214.8 million, while Commercial Products net sales surged 11% to $218.0 million. Baby & Parenting net sales slipped 6.5% to $181.5 million in the same period. The company also reported that it will pursue the sale of its Endicia online postage and Calphalon retail outlet stores and kitchen electrics businesses. Normalized gross margin rose 140 basis point to 39.2% in the quarter. Operating cash flow fell to $339.2 million from $360.8 million. The company repurchased 3.3 million shares at a cost of $103.9 million during the quarter. "We delivered another solid quarter with good sales growth and strong earnings," said Michael Polk, Newell Rubbermaid's President and Chief Executive Officer. "Our strategy of accelerating advertising and promotion in support of our brands is working, delivering third quarter core sales growth of over 7 percent on our key Writing, Commercial Products and Tools segments and normalized earnings per share growth for the total company of over 11 percent.” Newell Rubbermaid projects FY14 earnings of $2.16 to $2.22 per share. Newell Rubbermaid shares slipped 0.23% to close at $34.95 yesterday.