Newell Rubbermaid Net Grows 26.7 Percent in Q4, 220.5 Percent for Year
ATLANTA-Reduced expenses propelled Newell Rubbermaid to healthy bottom-line gains for its fourth quarter and fiscal year.
Net income for the quarter, which ended on Dec. 31, totaled $101.9 million, up 26.7 percent over last year's fourth quarter. For fiscal 2012, net income ballooned by 220.5 percent to $401.3 million.
Newell's quarterly numbers got a boost from a 2.7 percent drop in selling, general and administrative expenses, which translated into a 110 basis-point decrease in SG&A as a percentage of sales, to 25.2 percent. The company also halved its restructuring costs and posted an 18 percent decline in interest expense.
Net sales for the quarter were $1.5 billion, up 1.6 percent from the prior year's fourth quarter. For the fiscal year, net sales totaled $5.9 billion, an increase of 0.6 percent.
Michael Polk, Newell's president and CEO, said, "Our solid fourth-quarter financial results represent the sixth consecutive quarter of consistent delivery in line with or better than expectations." Polk added that core sales improved despite difficult economic conditions in Europe and challenges in the company's decor business.
Newell said the company is projecting a core sales increase of from 2 to 4 percent for 2013, and a net sales rise of 1 to 3 percent.