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CHICAGO — Consumer products company Newell Rubbermaid Inc. said its second-quarter earnings rose 14 percent, thanks to lower material costs and a decision to stop making some less-profitable products.
Adjusted results for the maker of Rubbermaid storage containers, Sharpie pens and Calphalon cookware were down 3 percent compared with last year's adjusted figures, the company said Thursday — but still managed to top Wall Street forecasts. Its shares climbed in morning trading.
For the three months that ended June 30, Atlanta-based Newell Rubbermaid earned $105.7 million, or 38 cents per share. That compares with a year-ago profit of $92.5 million, or 33 cents per share.
Excluding one-time items, the company's profit was 47 cents per share. Analysts were hoping for a profit of 35 cents per share on revenue of $1.46 billion. Those estimates exclude one-time items.
"I think it's important to note that even this recessionary environment, our brands are continuing to introduce innovative new products and to drive market share and gain additional product listings," President and CEO Mark Ketchum said during a conference call with investors.
Sales fell nearly 18 percent to $1.5 billion, down from $1.83 billion, mostly because of the product reductions.
Also Thursday, the company raised its full-year outlook, saying it expected a full-year adjusted profit between $1.15 and $1.30 per share. It previously expected an adjusted profit of $1 to $1.25 per share. Executives said they expect full-year sales to fall at the "unfavorable end" of the previously issued forecast, which called for a decline of 10 to 15 percent.
For the third quarter, the company expects sales to fall in by a high teen percentage. It expects earnings per share, excluding one-time items, to be between 25 cents and 35 cents.
BMO Capital Markets analyst Connie Maneaty told investors in a research note that the third-quarter estimates may be reduced.
"The wide guidance range and weak sales outlook suggests that revisions are more likely to be downward than upward for the quarter," she wrote.
Newell Rubbermaid shares climbed 55 cents, or 4.5 percent, to close at $12.81 Thursday.
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On the Net:
http://www.newellrubbermaid.com
