Newell Brands’ Outdoor & Recreation segment generated net sales of $383 million compared with $356 million in the prior-year period, reflecting a gain of 7.6 percent. The gain reflects a core sales increase of 8.1 percent and the impact of unfavorable foreign exchange.
Reported operating income was $40 million, or 10.4 percent of sales, compared with a loss of $41 million, or negative 11.5 percent of sales, in the prior-year period. Normalized operating income was $46 million, or 12.0 percent of sales, compared with $37 million, or 10.4 percent of sales, in the prior-year period.
The segment includes Aerobed, Bubba, Campingaz, Coleman, Contigo, Marmot, Stearns and ExOfficio.
Companywide, sales were $2.7 billion, a 5.1 percent increase compared to the prior-year period, as core sales growth of 7.2 percent was partially offset by a foreign exchange headwind and divested businesses.
The company reported a net income of $304 million, or $0.71 diluted earnings per share, compared with a net loss of $626 million, or $1.48 diluted loss per share, in the prior-year period.
Normalized net income was $356 million, or $0.84 normalized diluted earnings per share, compared with $307 million, or $0.73 normalized diluted earnings per share, in the prior-year period.
“We delivered very strong third-quarter results, including broad-based sales growth underpinned by strong consumption, and significant improvement in operating margin and cash flow generation, as the organization rallied behind our strategic priorities,” said Ravi Saligram, Newell Brands President and CEO. “We are heading into the fourth quarter with a renewed sense of energy as we chase demand in certain high growth categories. We remain laser-focused on increasing shareholder value by sustaining growth momentum, driving meaningful innovations that leverage consumer trends, building a competitive edge through omnichannel and significantly reducing organizational complexity.”
Outlook For Full Year And Fourth Quarter 2020
As visibility has improved in recent months relative to the impact of COVID-19 on the business, the company reinstituted its practice of providing guidance.
Full-year sales are expected in the range of $9.2 billion to $9.3 billion. Core sales are expected to see a low-single-digit decline. Normalized EPS is expected in the range of $1.63 to $1.69.
Fourth-quarter sales are expected in the range of $2.5 billion to $2.6 billion. Core sales are expected to see flat to low-single-digit growth. Normalized EPS is projected in the range of 40 cents to 46 cents.
Newell’s major brands include Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Coleman, Marmot, Oster, Sunbeam, FoodSaver, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Mapa, Spontex and Yankee Candle.
Photo courtesy Marmot