Newell Rubbermaid Q2 Net Climbs 37.2 Percent
ATLANTA-In what Michael Polk, president and CEO, described as "very strong second-quarter results across all key metrics," Newell Rubbermaid posted second-quarter net income of $150.6 million, up 37.2 percent from the second quarter of last year.
Net sales in the quarter, which ended on June 30, gained 3.1 percent to finish at $1.5 billion. The drivers in sales growth, according to Polk, were "outstanding top-line performance in writing, tools and commercial products." Sales in Newell's Home Solutions unit declined 2.6 percent, with growth in the Calphalon and Rubbermaid Food and Beverage brands offset by sales decreases in lower-margin product lines.
Gross margin increased by 50 basis points to 40 percent. Selling, general and administrative expenses rose 5 percent in dollars and 40 basis points as a percentage of sales, to 25.2 percent.
"These strong results give us increased confidence that our strategy of accelerating advertising and promotion in support of our brands is working," Polk said. Looking ahead, Newell has projected that its core sales growth will come in at from 3 to 4 percent.