Newell Brands releases financial results for Q2 2019

“The financial results we announced [August 2, 2019] represent another quarter of progress, with disciplined cost management and focused execution behind working capital initiatives driving better than expected margin and cash flow progression in the second quarter,” said Chris Peterson, Newell Brands Interim CEO and CFO. 

“Encouraging first half results and the green shoots of progress we are driving across the business give us the confidence to reiterate our outlook for full year core sales, operating margin and earnings per share and to raise our full year outlook for operating cash flow to between $600 and $800 million. 

While still early in the organization’s turnaround, we believe our decisive and strategic actions to strengthen our performance will drive further improvement going forward, as we work to transform Newell Brands into a leading next-generation consumer products company.”

Second Quarter 2019 Executive Summary

  • Net sales from continuing operations were $2.1 billion, a decline of 3.9% compared with the prior year period. 
  • Core sales from continuing operations declined 1.1% from the prior year period.
  • Reported operating margin was 8.4% compared with 3.8% in the prior year period. Normalized operating margin was 11.3% compared to 9.7% in the prior year period.
  • Reported diluted earnings per share for the total company were $0.21 compared with $0.27 in the prior year period.
  • Normalized diluted earnings per share for the total company were $0.45 compared with $0.78 in the prior year period.
  • Operating cash flow was $191 million, a $180 million improvement versus a year ago.
  • Gross debt was reduced by $517 million in the quarter; net debt was reduced by $777 million.
  • Divestitures of Process Solutions and Rexair were completed and an agreement was signed to divest the U.S. Playing Cards business, which is anticipated to close in the second half of 2019.
  • The company announced its decision to retain the Rubbermaid Commercial Products business, which has previously been included in discontinued operations. The addition of Rubbermaid Commercial Products to the continuing operations portfolio will be accretive to operating margins, normalized earnings per share and operating cash flow in 2020 and future years.
  • The company announced its decision to move its corporate headquarters to Atlanta, Georgia, in order to facilitate a stronger connection between senior leaders and the operations of the business, and to enhance the company’s culture and sense of community. Three of Newell’s seven operating divisions (Writing, Baby and Food) are based in Atlanta.

Read the full press release here. 

Newell Brands has also announced their newly appointed CEO, Ravi Saligram

Effective October 2, 2019 Ravi Saligram will be President and Chief Executive Officer of Newell Brands, as well as a member of the Newell Brands Board of Directors.

Patrick Campbell, Chairman of the Board of Newell Brands, commented, “After a rigorous and wide-ranging selection process, the Board is delighted to welcome Ravi as the company’s next CEO. Ravi is an exceptional business leader and a proven chief executive officer with a track record of building diverse leadership teams while delivering high quality performance in complex multi-unit organizations. 

He has an impressive history of driving shareholder value during his prior CEO roles, and he has successfully executed multiple digital transformations during his career. He is noted for his leadership in consumer-facing and digital businesses and has lived and worked in multiple international environments. The Board welcomes Ravi to the role and looks forward to partnering with him and the broader leadership team to build Newell Brands into a leading next-generation consumer products company.”

“I am delighted to return to my roots in CPG and lead the Newell team to reestablish the organization as a premier, cutting edge consumer products company that is at the forefront of meeting evolving needs and lifestyles,” said Ravi Saligram. “I am confident that Newell, with its iconic brands and a compelling product portfolio, is ripe for building a strong growth platform that drives shareholder value through the creative intersection of design, innovation, e-commerce and efficiencies. I’m excited to partner with the leadership team as we galvanize employees to drive world-class execution, become digital-first and build a forward-looking, winning culture.”

Saligram comes to Newell Brands with an extensive background in consumer brands, omnichannel commerce and global operations, and a proven record of building a pipeline of best-in-class talent, with a focus on diversity and inclusion. He is currently CEO and a director of Ritchie Bros. Auctioneers Incorporated.

Under his leadership, Ritchie Bros. was recognized as one of British Columbia’s Top Employers in 2018; OfficeMax was recognized by Ethisphere as one of the world’s most ethical companies, two years in a row; and S.C. Johnson Korea was named one of the three best foreign managed companies in Korea by KBS TV. In addition, in 2018 Saligram was named a CEO of the Year by Business in Vancouver, as well as the Best in Biz Executive of the Year.

Source: Newell Brands Press Release July 30, 2019