Newell Net Falls 24 Percent in Second Quarter
July 27, 2012,
ATLANTA-A decline in sales coupled with a significant income-tax increase slashed into Newell Rubbermaid's bottom line in the second quarter.
Net income for the diversified manufacturer fell 23.8 percent to $111.8 million for the quarter, which ended on June 30. Net sales were down 1.9 percent to $1.5 billion, mostly due to change in foreign currency rates. Income-tax expense more than doubled to $52.5 million, due to a more-than-doubling of the effective income-tax rate to 32 percent.
Michael Polk, the company's president and CEO, called it a "solid second quarter." Polk said Newell Rubbermaid's Parent & Baby segment posted "strong core sales growth," as did its emerging-markets sector. "(W)e believe our portfolio is well positioned to meet our financial and strategic goals for the year," Polk said.