Newell Rubbermaid Net Slips in Q2

Newell RubbermaidATLANTA-Although Newell Rubbermaid’s second-quarter net income was down 1.8 percent, Michael Polk, president and CEO, termed it “another quarter of steady progress.”

Polk cited the company’s growth in both sales and earnings per share. Net sales increased 3.5 percent to $1.5 billion, and earnings per share rose 11.1 percent. Total net income was $109.8 million, and included a loss from discontinued operations. Factoring out those operations, net income was up 9.7 percent to $116.6 million.

Sales in the company’s home solutions segment, which encompasses its housewares categories, rose 2 percent. The drivers included strong results from Rubbermaid and increased distribution of Calphalon products.

The quarter, which ended on June 30, also included a pickup of 70 basis points in gross margin, to 39.5 percent. Selling, general and administrative expenses were flat as measured in dollars, but were down 80 basis points as a percentage of sales to 24.8 percent.

Based on these results, Newell is projecting total sales growth for 2013 of between 2 and 4 percent.