Newell Brands, Inc. (NYSE: NWL)
Sharpie and Yankee Candle maker, Newell Brands, revealed weaker-than-anticipated financial results for its June quarter, before the opening bell Monday.
The company announced a drop in both profit and revenue during the period, and revised its earnings outlook downward.
Newell stock, down 14% since the beginning of the year, was down $3.38, or 12.71% at 11:20am. This is lowest the shares have dropped in nearly seven months.
NWL Earnings & Outlook
The consumer goods company saw its profit drop from $223.0 million, or $0.46 per share in the year-ago quarter, to $131.7 million, or $0.27 per share. After excluding one-time items, the company earned $400.9 million, or $0.82 per share.
Total revenues for the quarter also dropped from $2.53 billion in the second quarter of the previous year, to $2.20 billion. Analysts polled by Thompson Reuters had expected the company to report earnings of $0.77 per share.
Newell adjusted its guidance for the full year, to reflect the sale of its Waddington and Rawlings business units. The company now expects revenue of between $8.7 billion to $9.0 billion from its earlier guidance of $14.4 billion to $14.8 billion. Its earnings forecast is in the range of $2.45 to $2.65 from $2.65 to $2.85 per share.
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Newell Brands CEO Comments
“Newell Brands drove the Accelerated Transformation Plan into action in the second quarter, beginning a period of significant change to both our portfolio and organization. We announced and completed the divestitures of Waddington and Rawlings and are well into the sale processes on all other businesses held for sale. We also took significant steps to right-size our organization for the scale of our new portfolio, with changes announced and actioned between May and August,” said Michael Polk, President and CEO of Newell Brands.
“We continue to prioritize deleveraging, with gross debt in Q2 2018 $900 million below prior year and plans in motion to de-lever by nearly an incremental $900 million by the end of Q3 2018. In the context of these significant changes and a very challenging U.S. retail environment, we delivered second quarter results generally in line with expectations. While there is much more to do, we are acting decisively to make Newell Brands a simpler, faster and stronger company,” continued Polk.
Newell Brands, Inc. Company Profile
Newell Brands manufactures, markets, and sells commercial and consumer products. The company operates through Live, Learn, Work, Play, and Other segments. The Live segment distributes, sources, and markets a portfolio of household items.
The Learn segment consists of writing and fine writing businesses that have market share growth potential by further building strong brands, such as Expo, Sharpie, and Paper Mate, and deploying the portfolio into new geographies.
Its Work segment offers a line of commercial and cleaning brands like Quickie, Rubbermaid, Rubbermaid Commercial Products, MAPA, Quickie, and Spontex that are found in schools, hospitals, stadiums, homes, and other commercial settings.
The Play segment is engaged in the manufacture of global consumer active lifestyle items for outdoor-related activities. This segment primarily sells its products under the Marmot, Shakespeare, Berkley, Rawlings, Coleman, Contigo, and Ex Officio brand names.
The Other segment is involved in the distribution of plastic items like medical disposables, closures, rigid packaging, contact lens packaging, and plastic cutlery under Jarden Plastic Solutions. Newell Brands, Inc was founded in 1903 and is headquartered in Hoboken, New Jersey. –Reuters