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Newell Rubbermaid reaffirms full-year guidance

Newell Rubbermaid reported its second-quarter financial results Thursday morning, which pointed to strong progress in line with the company's full-year outlook for 2014.

Net sales for the three months ended June 30 were $1.52 billion, up 3.1% from last year's net of $1.47 billion.

Net income came in at $150.6 million for the quarter, up 37.2% from 2013's income of $109.8 million.

"We have delivered very strong second-quarter results across all key metrics," said Michael Polk, Newell Rubbermaid's president and CEO, who pointed to an especially strong performance in Writing, Tools and Commercial Products (which drove core sales by 4.6%). "These strong results give us increased confidence that our strategy of accelerating advertising and promotion in support of our brands is working. In fact, we now believe we are tracking toward the high end of our normalized EPS guidance range of $1.94 to $2.00 for the full year."

Also of note was a reported gross margin of 40.0% and a normalized gross margin of 40.3%, up 80 basis points from last year. Operating margin was also up year-over-year to 14.0% from 12.6%.

Ultimately, Newell Rubbermaid reaffirmed its full-year guidance of core sales growth of 3 to 4%, normalized operating margin growth of up to 40 basis points, normalized EPS of $1.94 to $2.00, and operating cash flow between $600 million and $650 million.


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