Net Dips for Newell Rubbermaid in Second Quarter
ATLANTA-Rising expenses combined to offset a slight gain in net sales to push Newell Rubbermaid's second-quarter net income down 6.9 percent, to $135.4 million.
Net sales for the quarter, which ended on June 30, edged up 2.6 percent to $1.6 billion. But gross margin lost 175 basis points to tally 37.5 percent, as price increases instituted by Newell Rubbermaid lagged the effect of higher input costs. In addition, selling, general and administrative expenses rose 5.8 percent in dollars and 20 basis points as a percentage of net sales, to 24.3 percent.
Michael Polk, who succeeded Mark Ketchum as president and CEO on July 18, said while Newell Rubbermaid is undergoing plenty of challenges due to the U.S. and European economies, "we are experiencing good progress in many areas of the business. Our new-product innovations are gaining traction in the marketplace, and our Latin America and Asia Pacific businesses continue to deliver strong growth."