Rubbermaid Owner SoarsBy
Company was formed out of merger with Jarden last year
Newell’s international sales help offset slowdown at home
Newell Brands Inc., the sprawling consumer-products company that owns Rubbermaid, Mr. Coffee and Elmer’s glue, kicked off the biggest rally in more than a year after boosting its annual forecast.
Helped by strong sales overseas, Newell now expects earnings of as much as $3.20 a share this year, up from $3.15 previously. The company’s first-quarter sales and profit also topped analysts’ estimates.
Newell was formed in last year’s merger of Jarden Corp. and Newell Rubbermaid Inc., a deal worth about $13 billion when excluding debt. The consumer-brand behemoth is now making a bigger push for international and e-commerce sales. Newell, based in Hoboken, New Jersey, is coping with a slowdown in its home market, where big-box stores and other mass-market retailers are carrying less inventory.
“Our international growth coupled with very strong e-commerce results more than offset the continuing impact of inventory destocking in U.S. mass channels,” Chief Executive Officer Michael Polk said in a statement Monday.
The stock rose as much as 12 percent to $51.85 in New York trading after the results were posted, marking the biggest intraday gain since December 2015. Newell’s shares had been up 3.9 percent this year before the latest surge.
First-quarter earnings amounted to 34 cents a share, topping the 29-cent estimate of analysts. Sales rose to $3.3 billion. The average prediction was $3.22 billion.
Newell, whose other brands include Goody, Sunbeam and Yankee Candle, also increased its quarterly dividend by 21 percent to 23 cents a share.