Newell Rubbermaid Lowers Fiscal View, But 2Q Trumps Analysts
Shares of Newell Rubbermaid (NYSE:NWL) ticked higher Friday morning after the company revealed a narrowed fiscal forecast that still trumped Wall Street estimates and touted strong performance in emerging markets.
The company downgraded its fiscal 2011 earnings view to a range of $1.55 to $1.62 a share from its earlier forecast between $1.60 and $1.67 a share. Analysts had predicted a fiscal profit of $1.58 a share.
The maker of consumer and commercial products under brands such as Paper Mate, Dymo, Sharpie and Lenox reported second-quarter net income of $146.7 million, or 49 cents a share, compared with $130.4 million, or 41 cents a share, in the same quarter last year.
Excluding one-time restructuring costs, the company earned 46 cents a share for the three months ended June 30, ahead of average analyst estimates polled by Thomson Reuters of 42 cents.
Revenue for the Atlanta-based company was $1.57 billion, up 5.1% from $1.5 billion a year ago, beating the Streets view of $1.55 billion.
Overall our second quarter performance was in line with the guidance we communicated in early June, said recently elected Newell Rubbermaid CEO Michael Polk. Our new product innovations are gaining traction in the marketplace, and our Latin America and Asia Pacific businesses continue to deliver strong growth.
The maker of Rubbermaid storage containers warned, however, that strong growth in those regions is tempered by difficult economic conditions in the U.S. and Europe, particularly in the baby and parenting category.