Newell Rubbermaid reports Q3 loss, announces Project Renewal
Atlanta-based Newell Rubbermaid reported a third-quarter net loss of $177.6 million, compared with net income of $28.3 million in the year-ago period. Net sales for the quarter ended Sep. 30 totaled $1.55 billion, an increase of 5.8% from $1.47 in the third quarter of 2010.
"Our third-quarter results represent a solid step forward,” said Michael Polk, president and CEO. “Core sales growth, operating income margin improvement and operating cash flow came in as expected and improved meaningfully versus our first half and year ago results. These are good numbers in the context of a really tough macro-environment and represent progress toward our goal of delivering consistent predictable results and sustainable profitable growth."
Net income for the nine months ended Sept. 30 totaled $44.8 million, compared with $217.1 million in the year-ago period. Net sales for the nine-month period increased 3.6% to $4.37 billion, compared with $4.22 billion in the prior year.
In addition, Newell Rubbermaid announced Project Renewal, which will simplify and realign the structure of the company.
“Project Renewal [is] an initiative designed to reduce complexity in our operating structure and realign resources to our highest potential businesses,” Polk said. “We plan to achieve savings of approximately $90 to $100 million over the next 12 to 18 months, and invest the majority of these funds back into the business in increased brand building support, strengthened demand creation capabilities in customer development and marketing, and the development of our business system in emerging markets."
The company still expects full-year sales growth of 3% to 5%.
No comments found
Simpson posts Q3 income increase
Pleasanton, Calif.-based Simpson Manufacturing reported third-quarter income of $19.4 million, up 5.4% from $18.4 million in the third quarter of 2010. Net sales for the quarter increased 10.9% to $162.4 million, compared with net sales of $146.4 million in the year-ago period.
Sales increased in North America and Europe in the third quarter. Sales in the United States rose with above-average increases in the western — excluding California — Midwestern and southeastern regions, compared with the third quarter of 2010. Sales to contractor distributors, dealer distributors and lumber dealers increased, while sales to home centers decreased.
Simpson purchased the software assets of Keymark Enterprises, valued at $11.5 million, for $6.2 million in net cash payments and its 46.05% equity interest in Keymark. The transactions resulted in a gain of $4.3 million. The company’s customers use the software to design and engineer residential structures.
For the first nine months of 2011, income totaled $46.0 million, down 6.7% from income of $49.3 million for the first nine months of 2010. Net sales increased 8.5% to $472.7 million, compared with net sales of $435.9 million for the year-ago period.
No comments found
Consumers still spending on holidays despite economic concern
Despite concerns about the economy and rising household expenses, nearly three out of five (59%) consumers will put aside economic worries and spend the same or more this holiday season, according to Deloitte’s 26th annual survey of holiday spending intentions and trends. While this is a slight decline from 2010, it represents an eight-percentage point increase from 2009.
“Lackluster employment growth, debt crises and stock market fluctuations have battered consumer confidence, while inflation left many with lighter wallets this fall,” said Alison Paul, vice chairman and U.S. retail and distribution leader, Deloitte. “Consumers will be conservative this holiday season, but remain resilient and maintain a more positive interest in holiday shopping than we witnessed during the recession.”
Among holiday shopping destinations, the Internet and discount stores are at the top of the list, with 48% of consumers planning to shop these two destinations for holiday gifts. While online interest climbed, discounters slid 10 percentage points from 2010.
More than one-quarter (27%) of smartphone owners plan to use their devices for holiday shopping to search for store locations (67%), compare prices (59%) and check product availability (46%). Additionally, 44% plan to use social media to seek discounts, read reviews and check family and friends’ gift lists.
“Consumers are using online and mobile platforms to make the most of their holiday budgets, and the survey indicates that they will do more than just compare prices,” Paul said. “Retailers that use mobile and online channels to show product availability, locations and pricing but add customized promotions and gift ideas may encourage shoppers to come in the door for a specific gift and take additional items to the register.”
In other survey findings:
• Of the 68% of consumers who plan to change the way they shop to save money, 51% plan to head online to find better prices — up 10% from last year — while 46% plan to buy more items that qualify for free shipping;
• More than half of consumers (53%) plan to begin shopping before Thanksgiving, but 73% intend to hold out until after this holiday to make the majority of their purchases;
• Apparel ranked as the most popular holiday gift (48%), followed by gift cards (45%, down 11% from last year); and
• Higher-income households’ gift spending will hold up, while middle- and lower-income groups are paring back. Households earning $100,000 or more annually expect to trim gift spending by 2% to shell out an average of $812 on gifts, compared with a 26% drop to $291 on gifts among those earning less than $100,000.
For more on the survey, go to deloitte.com/us/2011HolidaySurvey.
Managing all these percent
Managing all these percent could drive you really crezy if you know what I mean. Are you prepared for the winter holiday? Travel in Oslo with your partner and try the ski slopes near by.
I am glad to found such
I am glad to found such useful post. I really increased my knowledge after read your post which will be beneficial for me. los angeles combat fitness
Life goes on whether or not
Life goes on whether or not there is an economic problem, and people are starting to realize that the problems are here to stay for the long run. While I can understand the reduced spending on gifts, the holiday choices are a little surprising to me. Christopher - stoett
I have been seeking
I have been seeking information on this topic for the past few hours and found your post to be well written and has solid information. Florida Vacation Deals
Consumers that shop online
Consumers that shop online will usually get the best deals. It's extremely easy to price shop especially for things such as outdoor fire pits and various other consumer products.
There are certain things on
There are certain things on which people will always keep spending money. But you should be careful with your spending overspending could lead you to troubles. Be careful;l with all your financial dealings. If you are planning to sell jewelry, then select a reliable buyer like I did,when I chose diamond buyers phoenix for selling my diamonds.