Newell Rubbermaid reports decline in Q1 income
Newell Rubbermaid reported first-quarter net income of $54.2 million, down 31.7% from $79.3 million. Sales for the quarter were $1.241 billion, down 0.8%.
During the earnings release, the company announced plans to sell its Hardware and Teach Platform business.
Home Solutions segment net sales for the first quarter were $338.9 million, a 3.7% increase compared with the prior-year quarter. Core sales in the segment increased 3.9%. The solid growth was primarily driven by strong results from Rubbermaid. Operating income in the Home Solutions segment was $34.1 million, or 10.1% of sales, as compared with $30.9 million, or 9.5% of sales, in the prior year. The improvement was primarily driven by increased sales volume and Project Renewal-related cost savings.
Tools segment net sales for the first quarter were $188.6 million, a 1.0% decline compared with the prior-year quarter. Operating income in the Tools segment was $18.7 million, or 9.9% of sales, compared with $28.7 million, or 15.1% of sales, in the prior year. The decline in margin was largely driven by input cost inflation and continued increased investments in strategic SG&A, the company said.
Newell Rubbermaid brands include Sharpie, Rubbermaid, Irwin, Lenox, Parker, Waterman, Levolor and Calphalon, among others.
Newell Rubbermaid to trim its portfolio
Newell Rubbermaid has announced its intention to sell its Hardware and Teach Platform businesses — the Bulldog, Shurline, Ashland and Amerock brands, the drapery hardware business, and Mimio.
“These are good businesses run by talented people but they do not fit with our strategy,” said CEO Michael Polk.
In 2012, the Hardware and Teach Platform represented net sales of more than $300 million. Newell’s Irwin Tools brand is not part of the group up for sale.
The company announced its plan as part of its first-quarter earnings statement, which showed net sales in the first quarter of $1.24 billion, a decline of 0.8%.
Gojo launches ‘Tough Job – Sweet Deal’ sweepstakes
Cleaning products manufacturer Gojo Industries is sponsoring a promotion that includes prizes and a free trip, the company said.
Gojo announced the "Gojo Tough Job. Sweet Deal. Giveaway" contest and sweepstakes, which started Wednesday. The contest is designed to appeal to people working in jobs that require them to regularly use industrial and automotive hand degreaser and other hand cleaning and conditioning products.
"One of the great things about our customers is they don’t mind getting their hands dirty in accomplishing big things in their tough jobs," said Gojo Tough Soils market manager Jim Brown. "They rely on Gojo industrial and automotive hand degreaser and conditioning products. Our Tough Job – Sweet Deal Giveaway is a way for us to acknowledge our customers’ strong work ethic and reward some of them for sharing their experiences with us via photos and videos."
Entrants are eligible to win a trip for two to the 2014 Daytona 500, 2013 World Series Game 3 or 2014 BCS Championship game. Entrants must submit either a photograph or video through the entry form online or a photo through Instagram at #GOJOToughSoils.