Newell Rubbermaid Posts Upbeat Q2 Earnings, Lifts Full-Year Forecast

reported stronger-than-expected earnings for the second quarter on Friday. The Atlanta, Georgia-based company reported quarterly net income of $148.5 million, or $0.55 per share, versus $150.6 million, or $0.54 per share, in the year-ago period. Excluding one-time items, the company's earnings came in at $0.64 per share. Its revenue climbed to $1.56 billion from $1.50 billion. However, analysts were expecting earnings of $0.62 per share on revenue of $1.54 billion. The average estimate among 11 Estimize users was for earnings of $0.63 per share and revenue of $1.54 billion. Writing net sales rose 1.3 percent to $495.9 million for the second quarter, while Home Solutions net sales climbed 14.4 percent to $438.5 million. Tools net sales slipped 7.7 percent to $205.2 million, while Commercial Products net sales dropped 5.8 percent to $210.6 million. Baby & Parenting net sales jumped 14.7 percent year-over-year to $210.7 million in the recent quarter. Its gross margin expanded 20 basis points to 39.8 percent, while operating margin narrowed to 13.8 percent from 14.2 percent. During the quarter, the company repurchased 1.3 million shares at a total cost of $50.4 million. "We have posted a strong set of second quarter results with core sales growth of 5.1 percent and normalized earnings per share growth of 8.5 percent, despite unprecedented foreign exchange pressure on earnings," said Michael Polk, President and Chief Executive Officer. "Core sales grew in all five of our segments and in all four geographic regions." Newell Rubbermaid now projects full-year earnings of $2.14 to $2.20 per share, versus earlier forecast of $2.10 to $2.18 per share. It now expects core sales growth of 4.0 percent to 5.0 percent, versus prior outlook of 3.5 percent to 4.5 percent. Newell Rubbermaid shares gained 1.16 percent to close at $42.80 yesterday.