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.
Other Articles By Author
Patti Carpenter Talks Color and its Importance in the Home
HFN's DIGITAL EDITION
COVER STORY: Sharpening the Focus on Millennials
Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.
ALSO IN THIS ISSUE:
- Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
- Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.