09-27-2006, 11:03 AM
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#56 (permalink)
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Junkie
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Quote:
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Originally Posted by pan6467
When a non unionized company that had one of the best employee relationships in the country, never a layoff, is forced to sell and change it's labor practices not because the market couldn't support their price, but because the company that sold 20% of your product decides you need to cut your prices so that you lose money...... there are serious issues that need to be looked at.
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Perhaps Rubber Maid got complacent.
I don't know about you, but I am never going to feel sorry for a company generating anywhere close to $6 billion in sales with 30% gross profit margins.
Quote:
Newell Rubbermaid Reports Second Quarter 2006 Results
Strong Six Month Internal Sales Growth Company Raises Full Year Guidance on EPS, Sales and Gross Margin Growth
pdf Financial Documents
ATLANTA, July 27, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Newell Rubbermaid Inc. (NYSE: NWL) today reported second quarter 2006 results, reflecting strong sales growth and improved gross margins.
Net sales in the second quarter 2006 rose 9.6 percent to $1.70 billion, compared to $1.55 billion in the prior year. Internal sales increased 5.7 percent, due primarily to continued progress in the Home and Family, Cleaning and Organization, and Office Products segments. All reported sales figures exclude the results of the company's Home Decor Europe business, which was classified as discontinued operations in the second quarter 2006, as discussed below.
"Our strong results this quarter reflect the team's dedication to simultaneously driving internal sales growth and gross margin expansion," said Mark Ketchum, chief executive officer of Newell Rubbermaid. "We will continue investing in our strongest brands and optimizing our portfolio. The transformation of our company is now in full swing, fundamentally changing our finished product sourcing model, our business model and our culture."
Excluding restructuring charges for Project Acceleration and impairment charges, income from continuing operations was $149.6 million, or $0.54 per share, for the quarter ended June 30, 2006, exceeding company guidance and the prior year's result of $111.9 million, or $0.41 per share. Income from continuing operations, as reported, was $135.7 million, or $0.49 per share, compared to $87.4 million, or $0.32 per share, in the prior year. The second quarter 2006 included a one-time tax benefit of $22.7 million, or $0.08 per share. The company recorded Project Acceleration restructuring costs of $19.8 million in the second quarter 2006 and impairment charges of $31.4 million in the second quarter 2005. A reconciliation of the results "as reported" to results "excluding charges" is attached to this press release.
Gross margin for the second quarter 2006 improved to 33.9 percent, a 250 basis point improvement over the prior year. The expansion was driven by strong productivity savings, pricing and favorable mix, which more than offset raw material inflation.
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http://ir.newellrubbermaid.com/relea...leaseID=205448
In fact after looking over the financials NWL may prove to be a good stock to invest in. Thanks for the tip.
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