EX-99 3 xex99-1.txt EXHIBIT 99.1 ------------ [NEWELL RUBBERMAID LOGO] NEWS RELEASE ------------ JANUARY 29, 2004 Page 1 of 5 NEWELL RUBBERMAID REPORTS FOURTH QUARTER AND FULL YEAR 2003 RESULTS * Delivered Strong Free Cash Flow and Inventory Improvement * Internal Sales Grow 2.3% in the Fourth Quarter * Continued Progress on Divestitures ATLANTA, JANUARY 29, 2004 - Newell Rubbermaid Inc. (NYSE: NWL) today announced its fourth quarter and full year 2003 results, delivering net sales, earnings and free cash flow at the high-end of its fourth quarter estimates. FOURTH QUARTER RESULTS Net loss in the quarter was $211.6 million, or a loss of $0.77 per share in 2003, compared to net income of $95.8 million, or $0.36 per share in the fourth quarter of 2002. Net income, excluding charges in the fourth quarter, was $110.8 million versus $132.3 million in the fourth quarter of 2002. Diluted earnings per share, calculated on the same basis, was $0.40 compared to $0.49 in the fourth quarter 2002. A reconciliation of the results "as reported" to results "excluding charges" is attached to this press release. Free cash flow was a record $242.1 million in the fourth quarter, compared to $176.6 million in the fourth quarter of 2002. This strong performance was largely driven by improvement in working capital management, as the company eliminated $205 million or 19 days of inventory from the level at September 30, 2003. The company defines free cash flow as cash generated from operations, net of capital expenditures and dividends. "Last year was challenging for Newell Rubbermaid, however, our team made progress in the transformation of this company, as we continued the execution of our restructuring plan. We are moving quickly to reconfigure our portfolio, exiting low-margin product lines and pursuing the divestiture of non-strategic businesses. When we exit 2004, we believe this company will be a much leaner organization that is ready to maximize shareholder value" said Joseph Galli, Newell Rubbermaid CEO. Net sales in the fourth quarter of 2003 were $2.1 billion, compared to $2.0 billion in the fourth quarter of 2002, an increase of 3.9%. Foreign currency translation was a benefit to sales of 3.7% during the quarter, while pricing declined 1.8%. [NEWELL RUBBERMAID LOGO] NEWS RELEASE ------------ JANUARY 29, 2004 Page 2 of 5 Internal sales growth, which excludes the impact of material acquisitions and divestitures, increased 2.3% for the quarter. News from the groups include: * Irwin - Strong sales growth was seen in the Irwin hand tools and power tool accessories businesses. The launch of the Strait-line{R} laser products was extremely successful and was a key driver of the fourth quarter sales performance in the hand tools division. * Rubbermaid - Rubbermaid Home Organization delivered strong internal sales growth during the quarter. The division was able to sell higher than expected levels of existing stock of discontinued product lines in December. This was part of the company's previously announced plan to exit certain low-margin product lines. * Sharpie - Despite the continued sales weakness in the commercial writing business, the Sharpie group was able to offset those declines through its retail channels. * Calphalon Home - In the Calphalon Home group, the on-going sales declines seen in the picture frames and low-end cookware businesses, continued in the fourth quarter. In high-end cookware, Calphalon{R} One {TM} Infused Anodized cookware was successfully launched during this quarter. Gross margins decreased to 25.4% from 28.3% in the fourth quarter of 2002, due primarily to unfavorable pricing and the absorption impact from lower manufacturing volumes, offset partially by productivity. Excluding charges, gross margins declined to 25.7% from 28.4%. As part of its previously announced restructuring plan, the company recorded a fourth quarter pre-tax restructuring charge of $79.0 million primarily related to severance and facility exit costs in connection with the company's streamlining and productivity initiatives, and other charges of $18.8 million primarily related to product line exits and the sale of a business. The company made significant progress in the fourth quarter related to its strategy to divest certain under performing non-strategic assets. The company recorded a non-cash impairment charge of approximately $289.4 million, in the fourth quarter of 2003, related to non-core businesses targeted for sale. These businesses contributed approximately $875 million in sales in 2003. The sale of these businesses could have an adverse impact on pre-tax earnings of $44 - $52 million ($0.11 - $0.13) and on cash flow for the year. The company expects to provide earnings and cash flow impact related to a particular business, if and when, the potential sales occur. FULL YEAR RESULTS Net sales for the full year 2003 were $7.8 billion compared to $7.5 billion in 2002, an increase of 4.0%. Foreign currency translation was a benefit to sales of 3.1% for the year, while pricing declined 1.9%. Internal sales were flat for the full year 2003. [NEWELL RUBBERMAID LOGO] NEWS RELEASE ------------ JANUARY 29, 2004 Page 3 of 5 Gross margins for the full year decreased to 26.7% from 27.6% in 2002, due primarily to unfavorable pricing and the absorption impact from lower manufacturing volumes, offset partially by productivity. Excluding charges, gross margins declined to 26.9% from 27.8%. Net loss for the full year 2003 was $46.6 million, or $0.17 loss per share, compared to a net loss of $203.4 million, or $0.76 loss per share in 2002. Excluding charges, net income for 2003 was $408.0 million versus $423.2 million for 2002. Diluted earnings per share, calculated on the same basis, were $1.49 versus $1.58 for 2002. In addition, for the full year 2003, as part of its previously announced restructuring plan, the company recorded a pre-tax restructuring charge of $245.0 million primarily related to severance and facility exit costs in connection with the company's streamlining and productivity initiatives, and other charges of $48.7 million, related primarily product line exit costs and loss on the sale of businesses. A reconciliation of the results "as reported" to results "excluding charges" is attached to this press release. PENSION LIABILITIES As previously disclosed, the company recorded a non-cash charge to shareholders equity of $114.5 million in the fourth quarter to record the minimum pension liability related to the under-funded status of the pension plan. This charge did not impact earnings or cash flow in 2003. OUTLOOK For 2004, the company expects its full year 2004 internal sales to decline 1% - 3% and expects diluted earnings per share to be in the range of $1.48 to $1.58. This range excludes restructuring charges of $43 - $63 million ($0.11 - $0.16 per share) and other charges of $10 - $20 million ($0.03 - $0.05 per share) primarily related to product line exits and charges of $70 - $90 million ($0.25 - $0.33 per share) primarily for foreign currency translation adjustments related to the divestiture of non-core businesses targeted for sale. This guidance does not include the impact of any potential divestitures. For the first quarter 2004, the company expects internal sales to decline 1% - 3% and diluted earnings per share to be in the range of $0.16 - $0.20. This range excludes restructuring charges of $25 - $35 million ($0.06 - $0.09 per share) and other charges of $5 - $10 million ($0.01 - $0.03 per share) primarily related to product line exits and charges of $70 - $90 million ($0.25 - $0.33 per share) primarily for foreign currency translation adjustments related to the divestiture of non-core business targeted for sale. This guidance does not include the impact of any potenial divestitures. [NEWELL RUBBERMAID LOGO] NEWS RELEASE ------------ JANUARY 29, 2004 Page 4 of 5 A RECONCILIATION OF THE 2004 EARNINGS OUTLOOK IS AS FOLLOWS:
1st Quarter Full Year ----------- --------- Diluted earnings per share ($0.23)-($0.19) $1.02 - $1.12 Excluding: Restructuring charges $0.06 - $0.09 $0.11 - $0.16 Other charges (primarily product line exits) $0.26 - $0.36 $0.28 - $0.38 ------------- ------------- Diluted earnings per share, excluding charges $0.16 - $0.20 $1.48 - $1.58 ============= =============
The company expects free cash flow for the full year to be $200 to $250 million. Expected free cash flow is calculated as follows: cash flow from operations (estimated to be $680-$730 million), less capital expenditures (estimated to be approximately $250 million), less expected dividends of approximately $230 million. CONFERENCE CALL The company's fourth quarter and full year 2003 earnings conference call is scheduled for today, January 29 at 9:30 ET. To participate on the call, please RSVP domestically at (800) 240-1339 or internationally at (706) 645-6914. A dial-in number will be provided at that time. To listen to the web cast, use the link provided under Investor Relations on Newell Rubbermaid's corporate home page at www.newellrubbermaid.com. A replay will be available approximately two hours after the call concludes through February 29, 2004 and may be accessed domestically at (800) 642-1687 or internationally at (706) 645-9291. Conference call identification number 4816429 is required to access the replay. CAUTION CONCERNING FORWARD-LOOKING STATEMENTS The statements contained in this press release that are not historical in nature are forward-looking statements. Forward-looking statements are not guarantees since there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied in the forward looking statements. For a list of major factors that could cause actual results to differ materially from those projected, refer to Newell Rubbermaid's third quarter 2003 Form 10-Q, Exhibit 99.1, filed with the Securities and Exchange Commission. [NEWELL RUBBERMAID LOGO] NEWS RELEASE ------------ JANUARY 29, 2004 Page 5 of 5 NON-GAAP FINANCIAL This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of the differences between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. ABOUT THE COMPANY Newell Rubbermaid Inc. is a global marketer of consumer products with 2003 sales of over $7 billion and a powerful brand family including Sharpie{R}, Paper Mate{R}, Parker{R}, Waterman{R}, Colorific{R}, Rubbermaid{R}, Stain Shield{TM}, Blue Ice{R}, TakeAlongs{TM}, Roughneck{R}, Brute{R}, Calphalon{R}, Little Tikes{R}, Graco{R}, Levolor{R}, Kirsch{R}, Shur-Line{R}, BernzOmatic{R}, Goody{R}, Vise- Grip{R}, Quick-Grip{R}, IRWIN{R}, Lenox{R} and Marathon{R}. The company is headquartered in Atlanta, Georgia and employs approximately 40,000 employees worldwide. This press release and additional financial information about the company's 2003 fourth quarter and full year results are available on the company's web site at www.newellrubbermaid.com.
Newell Rubbermaid Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share data) Reconciliation of Results "As Reported" to Results "Excluding Charges" Three Months Ended December 31, ------------------------------------------------------------------------------------ 2003 2002 ----------------------------------- --------------------------------- Charges Excl. As Charges Excl. As Reported (1) Charges Reported (2) Charges % Change ----------- --------- -------- --------- ------- --------- -------- Net sales $2,092.8 $2,092.8 $2,013.6 $2,013.6 3.9% Cost of products sold 1,561.2 (7.1) 1,554.1 1,443.9 (1.5) 1,442.4 -------- -------- -------- -------- -------- -------- GROSS MARGIN 531.6 7.1 538.7 569.7 1.5 571.2 (5.7)% % of sales 25.4% 25.7% 28.3% 28.4% Selling, general & administrative expense 350.3 (2.5) 347.8 336.4 (0.5) 335.9 3.5% % of sales 16.7% 16.6% 16.7% 16.7% Impairment Charge 289.4 (289.4) - Restructuring costs 79.0 (79.0) 52.9 (52.9) - -------- -------- -------- -------- -------- -------- OPERATING INCOME (187.1) 378.0 190.9 180.4 54.9 235.3 (18.9)% % of sales (8.9)% 9.1% 9.0% 11.7% Nonoperating expenses: Interest expense 34.3 34.3 33.6 33.6 Interest income (2.2) (2.2) (0.4) (0.4) Other 4.6 (9.2) (4.6) 4.2 0.3 4.5 -------- -------- -------- -------- -------- -------- 36.7 (9.2) 27.5 37.4 0.3 37.7 (27.1)% -------- -------- -------- -------- -------- -------- INCOME BEFORE TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE (223.8) 387.2 163.3 143.0 54.6 197.6 (17.4)% % of sales (10.7)% 7.8% 7.1% 9.8% Income taxes (12.2) 64.7 52.5 47.2 18.1 65.3 (19.6)% Effective rate 5.5% 32.1% 33.0% 33.0% -------- -------- -------- -------- -------- -------- INCOME BEFORE CUMULATIVE EFFECT ON OF ACCOUNTING CHANGE (211.6) 322.5 110.8 95.8 36.5 132.3 (16.2)% % of sales (10.1)% 4.8% 4.8% 6.6% -------- -------- -------- -------- -------- -------- Cumulative effect of accounting change - - - - - - Three Months Ended December 31, ------------------------------------------------------------------------------------ 2003 2002 ----------------------------------- --------------------------------- Charges Excl. As Charges Excl. As Reported (1) Charges Reported (2) Charges % Change ----------- --------- -------- --------- ------- --------- -------- NET INCOME $ (211.6) $ 322.5 $ 110.8 $ 95.8 $ 36.5 $ 132.3 (16.2)% ======== ======== ======== ======== ======= ========= % of sales (10.1)% 5.3% 4.8% 6.6% EARNINGS PER SHARE BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE: Basic $ (0.77) $ 1.17 $ 0.40 $ 0.36 $ 0.13 $ 0.49 (18.4)% Diluted $ (0.77) $ 1.17 $ 0.40 $ 0.36 $ 0.13 $ 0.49 (18.1)% EARNINGS (LOSS) PER SHARE CUMULATIVE EFFECT OF ACCOUNTING CHANGE Basic $ - $ - $ - $ - $ - $ - NA Diluted $ - $ - $ - $ - $ - $ - NA EARNINGS (LOSS) PER SHARE Basic $ (0.77) $ 1.17 $ 0.40 $ 0.36 $ 0.13 $ 0.49 (18.4)% Diluted $ (0.77) $ 1.17 $ 0.40 $ 0.36 $ 0.13 $ 0.49 (18.1)% Average shares outstanding Basic 274.4 274.4 274.4 267.4 267.4 267.4 2.6% Diluted 274.4 274.4 274.4 268.2 268.2 268.2 2.3% (1) Charges excluded from "as reported" results for 2003 are restructuring, acquisition or divestiture related charges. These charges consist of $7.1 million in restructuring related costs associated with product line exits (shown in costs of products sold), $2.4 million of restructuring costs related to relocation of property and equipment (shown in selling, general and administrative expenses), $79.0 million of restructuring costs related to exiting certain facilities (shown in restructuring costs), and $289.4 million in impairment charges related to non-core businesses targeted for sale, and $9.2 million related primarily to the loss on the sale of assets (shown in other). (2) Charges excluded from "as reported" results for 2002 are restructuring or acquisition related charges. These charges consist of $1.5 million in restructuring related costs associated with product line exits (shown in costs of products sold), $0.5 million of restructuring costs related to relocation of property and equipment (shown in selling, general and administrative expenses), $52.9 million of restructuring charges related to exiting certain facilities (shown in restructuring costs), $0.3 of acquisition related transaction costs (shown in other).
NEWELL RUBBERMAID INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share data) EXCLUDING CHARGES RECONCILIATION AS REPORTED Twelve Months Ended December 31, --------------------------------------------------------------------------------------- 2003 2002 -------------------------------------- ---------------------------------- Charges Excl. As Charges Excl. As Reported (1) Charges Reported (2) Charges % Change ----------- -------- --------- ---------- ------- --------- -------- Net sales $7,750.0 $7,750.0 $7,453.9 $7,453.9 4.0% Cost of products sold 5,682.8 (15.1) 5,667.7 5,394.2 (13.8) 5,380.4 -------- -------- -------- -------- ------- -------- GROSS MARGIN 2,067.2 15.1 2,082.3 2,059.7 13.8 2,073.5 0.4% % of sales 26.7% 26.9% 27.6% 27.8% Selling, general & administrative expense 1,352.9 (3.3) 1,349.6 1,307.3 (7.4) 1,299.9 3.8% % of sales 17.5% 17.4% 17.5% 17.4% Impairment Charge 289.4 (289.4) - - - - Restructuring costs 245.0 (245.0) - 122.7 (122.7) - -------- -------- -------- -------- ------- -------- OPERATING INCOME 179.9 552.8 732.7 629.7 143.9 773.6 (5.3)% % of sales 2.3% 9.5% 8.4% 10.4% Nonoperating expenses: Interest expense 145.9 - 145.9 142.1 - 142.1 Interest income (5.8) - (5.8) (4.8) - (4.8) Other 19.7 (30.3) (10.6) 23.9 (23.7) 0.2 -------- -------- -------- -------- -------- -------- 159.8 (30.3) 129.5 161.2 (23.7) 137.5 (5.8)% -------- -------- -------- -------- ------- -------- INCOME BEFORE TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 20.1 583.1 603.1 468.5 167.6 636.1 (5.2)% % of sales 0.3% 7.8% 6.3% 8.5% Income taxes 66.7 128.4 195.1 157.0 55.9 212.9 Effective rate 331.8% 32.3% 33.5% 33.5% -------- -------- -------- -------- ------- -------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (46.6) 454.7 408.0 311.5 111.7 423.2 AS REPORTED Twelve Months Ended December 31, ------------------------------------------------------------------------------------- 2003 2002 ------------------------------------- ---------------------------------- Charges Excl. As Charges Excl. As Reported (1) Charges Reported (2) Charges % Change ----------- -------- -------- ---------- -------- --------- -------- % of sales (0.6)% 5.3% 4.2% 5.7% -------- -------- -------- -------- ------- -------- Cumulative effect of accounting change - - - $ (514.9) 514.9 - NET INCOME $ (46.6) $ 454.7 $ 408.0 $ (203.4) $ 626.6 $ 423.2 (3.6)% ======= ======== ======== ======== ======= ======== % of sales (0.6)% 5.3% (2.7)% 5.7% EARNINGS PER SHARE BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE Basic $ (0.17) $ 1.66 $ 1.49 $ 1.17 $ 0.42 $ 1.58 (6.1)% Diluted $ (0.17) $ 1.66 $ 1.49 $ 1.16 $ 0.42 $ 1.58 (5.8)% EARNINGS (LOSS) PER SHARE CUMULATIVE EFFECT OF ACCOUNTING CHANGE: Basic $ - $ - $ - $ (1.93) $ 1.93 $ - NA Diluted $ - $ - $ - $ (1.92) $ 1.92 $ - NA EARNINGS (LOSS) PER SHARE Basic $ (0.17) $ 1.66 $ 1.49 $ (0.76) $ 2.35 $ 1.58 (6.1)% Diluted $ (0.17) $ 1.66 $ 1.49 $ (0.76) $ 2.34 $ 1.58 (5.8)% Average shares outstanding Basic 274.1 274.1 274.1 267.1 267.1 267.1 2.6% Diluted 274.1 274.1 274.1 268.0 268.0 268.0 2.4% (1) Charges excluded from "as reported" results for 2003 are restructuring, acquisition or divestiture related charges. These charges consist of $15.1 million in restructuring related tcosts associated with product line exits (shown in costs of products sold), $3.3 million of restructuring related costs to relocation of property and equipment (shown in selling, general and administrative expenses), $245.0 million of restructuring costs related to exiting certain facilities (shown in restructuring costs), $289.4 million in impairment charges related to non-core businesses targeted for sale, $30.3 million, which is primarily the loss on the sale of the Cosmolab division (shown in other). (2) Charges excluded from "as reported" results for 2002 are restructuring or acquisition related charges and the cumulative effect of an accounting change related to the adoption of SFAS No. 142. These charges consist of $13.8 million in restructuring related costs for product line exits (shown in costs of products sold), $7.4 million of acquisition related charges (shown in selling, general and administrative expenses), $122.7 million of restructuring charges related to exiting certain facilities (shown in restructuring costs), other charges of $23.7 million, primarily acquisition related transaction costs (shown in other) and $514.9 million of charges related to the writedown of impaired goodwill in connection with the adoption of SFAS No. 142.
Newell Rubbermaid Inc. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions) December 31, December 31, 2003 2002 Assets: ------------ ------------ Cash and cash equivalents $ 144.4 $ 55.1 Accounts receivable, net 1,442.6 1,377.7 Inventories, net 1,066.3 1,196.2 Deferred income taxes 152.7 213.5 Prepaid expenses and other 194.2 237.5 --------- ---------- Total Current Assets 3,000.2 3,080.0 Other assets 211.7 302.2 Property, Plant and Equipment, net 1,761.1 1,812.8 Goodwill, net 1,989.0 1,847.3 Deferred income taxes 68.1 - Other intangibles, net 450.6 362.1 --------- ---------- Total Assets $ 7,480.7 $ 7,404.4 ========= ========== Liabilities and Stockholders' Equity: Notes payable $ 21.9 $ 25.2 Accounts payable 777.4 686.6 Accrued compensation 131.1 153.5 Other accrued liabilities 996.3 1,165.4 Income taxes 81.8 159.7 Current portion of long-term debt 13.5 424.0 --------- ---------- Total Current Liabilities 2,022.0 2,614.4 Long-term debt 2,868.6 2,372.1 Other long-term liabilities 572.1 348.4 Deferred income taxes and other 1.7 6.0 Stockholders' Equity 2,016.3 2,063.5 --------- ---------- Total Liabilities and Stockholders' Equity $ 7,480.7 $ 7,404.4 ========= ==========
Newell Rubbermaid Inc. CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (in millions) For The Twelve Months Ended December 31, 2003 2002 ------ ------ Operating Activities: Net income (loss) $ (46.6) $(203.4) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 278.2 280.7 Non-cash restructuring charges 138.3 74.9 Deferred taxes (11.5) 48.3 Cumulative effect of change in accounting - 514.9 Loss on Sale of Business 29.7 - Non-cash impairment charge 289.4 Other 26.1 9.8 Changes in current accounts, excluding the effects of acquisitions: Accounts receivable 33.4 2.8 Inventories 179.4 12.9 Other current assets 32.8 (42.1) Accounts payable 62.0 136.0 Accrued liabilities and other (238.1) 34.1 -------- ------- Net cash provided by operating activities $ 773.2 $ 868.9 Investing activities: Acquisitions, net $ (460.0) $(242.2) Expenditures for property, plant and equipment (300.0) (252.1) Disposals of non-current assets and other 43.9 7.8 -------- ------- Net cash used in investing activities $ (716.1) $(486.5) Financing Activities: Proceeds from issuance of debt $1,044.0 $ 772.0 Proceeds from issuance of stock 200.1 - Payments on notes payable and long-term debt (989.6) (901.5) Cash dividends (230.9) (224.4) Proceeds from exercised stock options and other 7.8 19.0 -------- ------- Net cash provided by (used in) financing activities $ 31.4 (334.9) Exchange rate effect on cash $0.8 $ 0.8 Increase (decrease) in cash and cash equivalents 89.3 48.3 Cash and cash equivalents at beginning of year 55.1 6.8 -------- ------- Cash and cash equivalents at end of period $ 144.4 $ 55.1 ======== =======
NEWELL RUBBERMAID INC. CACULATION OF FREE CASH FLOW (1) For The Three Months Ended December 31, 2003 2002 FREE CASH FLOW (IN MILLIONS): ---- ---- Net cash provided by Operating Activities $ 352.8 $ 299.7 Expenditures for Property, Plant & Equipment (52.9) (66.9) Cash Dividends (57.8) (56.2) ---------- ---------- Free Cash Flow $ 242.1 $ 176.6 ========== ========== For The Twelve Months Ended December 30, 2003 2002 FREE CASH FLOW (IN MILLIONS): ---- ---- Net cash provided by Operating Activities $ 773.2 $ 868.9 Expenditures for Property, Plan & Equipment (300.0) (252.1) Cash Dividends (230.9) (224.4) ---------- ---------- Free Cash Flow $ 242.3 $ 392.4 ========== ========== (1) Free cash flow is defined as cash flows provided by operating activities less cash expenditures for property, plant and equipment and cash dividends.
NEWELL RUBBERMAID INC. FINANCIAL WORKSHEET
2003 2002 ------------------------------------- ------------------------------------- Excluding Charges Excluding Charges Reconciliation (1) Reconciliation (1) Year-over-year changes ---------------------- ---------------------- --------------------------------- Re- Ex- Ex Opera- Opera- Ex- Ex Opera- Net Sales Operating Income Net ported cluded Charges ting Net ting cluded Charges ting --------------- ---------------- Sales OI Charges OI Margin Sales OI charges OI Margin $ % $ % ----- ------ ------- ------- ------ ----- ------ ------- ------- ------ ------- ------ ------ ------- Q1: Rubbermaid $ 718.0 $ 67.4 $ 0.5 $ 67.9 9.5% $ 710.1 $ 61.0 $ 5.0 $ 66.0 9.3% $ 7.9 1.1% $ 1.9 2.9% Sharpie 294.4 29.8 1.1 30.9 10.5% 301.9 25.8 2.5 28.3 9.4% (7.5) (2.5)% 2.6 9.2% Irwin 482.1 39.6 2.7 42.3 8.8% 331.1 20.0 2.4 22.4 6.8% 151.0 45.6% 19.9 88.8% Calphalon Home 241.9 11.2 0.1 11.3 4.7% 253.9 20.6 0.1 20.7 8.2% (12.0) (4.7)% (9.4) (45.4)% Restructuring Costs (59.7) 59.7 (9.7) 9.7 - Corporate (7.2) - (7.2) (7.5) - (7.5) 0.3 -------- ------ ----- ----- -------- ------ ----- ------ ------ ------ ----- Total $1,736.4 $ 81.1 $64.1 145.2 8.4% $1,597.0 $110.2 $19.7 $129.9 8.1% $139.4 8.7% $15.3 11.8% ======== ====== ===== ===== ======== ====== ===== ====== ====== ===== Core businesses 1,573.4 66.2 64.1 130.3 8.3% 1,586.7 111.5 $19.7 $131.2 8.3% (13.3) (0.8)% (0.9) (0.7)% Acquisition/ Divestitures 163.0 14.9 - 14.9 10.3 (1.3) - (1.3) 152.7 16.2 -------- ------ ----- ----- -------- ------ ----- ------ ------ ------ ----- ------ Total $1,736.4 $ 81.1 $64.1 $145.2 8.4% $1,597.0 $110.2 $19.7 $129.9 8.1% $139.4 8.7% $15.3 11.8% ======== ====== ===== ===== ======== ====== ===== ====== ====== ====== ===== ====== 2003 2002 ------------------------------------- ------------------------------------- Excluding Charges Excluding Charges Reconciliation (1) Reconciliation (1) Year-over-year changes ---------------------- ---------------------- --------------------------------- Re- Ex- Ex Opera- Opera- Ex- Ex Opera- Net Sales Operating Income Net ported cluded Charges ting Net ting cluded Charges ting --------------- ---------------- Sales OI Charges OI Margin Sales OI charges OI Margin $ % $ % ----- ------ ------- ------- ------ ----- ------ ------- ------- ------ ------- ------ ------ ------- Q2: Rubbermaid $ 751.2 $ 39.9 $ 0.3 $40.2 5.4% $ 738.3 $51.8 $0.7 $ 52.5 7.1% $ 12.9 1.8% $(12.3) (23.4)% Sharpie 485.2 107.6 0.1 107.7 22.2% 464.0 96.5 0.0 96.5 20.8% 21.2 4.6% 11.2 11.6% Irwin 520.5 55.6 1.1 56.7 10.9% 447.2 41.2 0.4 41.6 9.3% 73.3 16.4% 15.1 36.3% Calphalon Home 219.2 1.6 0.8 2.4 1.1% 245.5 8.8 (0.3) 8.5 3.5% (26.3) (10.7)% (6.1) (71.8)% Restructuring Costs (57.9) 57.9 - (8.9) 8.9 - - Corporate (6.3) - (6.3) (7.7) - (7.7) 1.4 -------- ------ ----- ------ -------- ------ ----- ------ ------ ------ ----- ------ Total $1,976.1 $140.5 $60.2 200.7 10.2% $1,895.0 $181.7 $9.7 $191.4 10.1% $ 81.1 4.3% $9.3 4.9% ======== ====== ===== ====== ======== ====== ===== ====== ====== ====== ===== ====== Core businesses $1,888.7 $124.5 $60.2 $184.7 9.8% $1,882.9 $180.9 $9.7 $190.6 10.1% 5.8 0.3% (5.9) (3.1)% Acquisitions/ Divestitures 87.4 16.0 - 16.0 12.1 0.8 - 0.8 75.3 15.2 -------- ------ ----- ------ -------- ------ ----- ------ ------ ------ ----- ------ Total $1,976.1 $140.5 $60.2 $200.7 10.2% $1,895.0 $181.7 $9.7 $191.4 10.1% $ 81.1 4.3% $ 9.3 4.9% ======== ====== ===== ====== ======== ====== ===== ====== ====== ====== ===== ====== ______________ (1) Excludes charges for restructuring and acquisition related charges, the loss on the sale of Cosmolab, and in the first quarter of 2002, the adoption of SFAS No. 142. See the reconciliation of these charges to "as reported" earnings on the Statements of Operations - Excluding Charges. NEWELL RUBBERMAID INC. FINANCIAL WORKSHEET 2003 2002 ------------------------------------- ------------------------------------- Excluding Charges Excluding Charges Reconciliation (1) Reconciliation (1) Year-over-year changes ---------------------- ---------------------- --------------------------------- Re- Ex- Ex Opera- Opera- Ex- Ex Opera- Net Sales Operating Income Net ported cluded Charges ting Net ting cluded Charges ting --------------- ---------------- Sales OI Charges OI Margin Sales OI charges OI Margin $ % $ % ----- ------ ------- ------- ------ ----- ------ ------- ------- ------ ------- ------ ------ ------- Q3 Rubbermaid $767.8 $58.8 $0.6 $59.4 7.7% $ 759.3 $ 77.6 $ 1.5 $ 79.1 10.4% $ 8.5 1.1% $(19.7) (24.9)% Sharpie 389.1 62.8 - 62.8 16.1% 412.1 74.4 1.0 75.4 18.3% (23.0) (5.6)% (12.6) (16.7)% Irwin 521.2 71.0 0.6 71.6 13.7% 479.3 32.8 5.1 37.9 7.9% 41.9 8.7% 33.7 88.9% Calphalon Home 266.6 12.2 0.9 13.1 4.9% 297.6 31.3 0.7 32.0 10.8% (31.0) (10.4)% (18.9) (59.1)% Restructuring Costs (48.4) 48.4 (51.2) 51.2 - Corporate (10.9) - (10.9) (7.5) - (7.5) (3.4) -------- ------ ----- ------ -------- ------ ----- ------ ------ ------ ------ ------ Total $1,944.7 $145.5 $50.5 $196.0 10.1% $1,948.3 $157.4 $59.5 216.9 11.1% $(3.6) (0.2)% $(20.9) (9.6)% ======== ====== ===== ====== ======== ====== ===== ====== ====== ====== ====== ====== Core businesses $1,895.1 $130.2 $50.5 $180.7 9.5% $1,937.2 $158.4 $59.5 $217.9 11.2% (42.1) (2.2)% (37.2) (16.7)% Acquisitions/ Divestitures 49.6 15.3 - 15.3 11.1 (1.0) - (1.0) 38.5 16.3 -------- ------ ----- ------ -------- ------ ----- ------ ------ ------ ----- ------ Total $1,944.7 $145.5 $50.5 $196.0 10.1% $1,948.3 $157.4 $59.5 $216.9 11.1% $(3.6) (0.2)% $(20.9) (9.6)% ======== ====== ===== ====== ======== ====== ===== ====== ====== ====== ====== ====== 2003 2002 ------------------------------------- ------------------------------------- Excluding Charges Excluding Charges Reconciliation (1) Reconciliation (1) Year-over-year changes ---------------------- ---------------------- --------------------------------- Re- Ex- Ex Opera- Opera- Ex- Ex Opera- Net Sales Operating Income Net ported cluded Charges ting Net ting cluded Charges ting --------------- ---------------- Sales OI Charges OI Margin Sales OI charges OI Margin $ % $ % ----- ------ ------- ------- ------ ----- ------ ------- ------- ------ ------- ------ ------ ------- Q4: Rubbermaid $786.4 $30.2 $ - $ 30.2 3.8% $738.8 $ 69.8 $(0.4) $69.4 9.4% $47.6 6.4% $(39.2) (56.5)% Sharpie 404.2 75.9 1.1 77.0 19.0% 415.0 81.2 (0.3) 80.9 19.5% (10.8) (2.6)% (3.9) (4.8)% Irwin 567.7 59.5 5.9 65.4 11.5% 469.7 33.3 2.1 35.4 7.5% 98.0 20.9% 30.0 84.7% Calphalon Home 334.5 21.6 2.5 24.1 7.2% 390.1 57.4 0.6 58.0 14.9% (55.6) (14.2)% (33.9) (58.4)% Restructuring Costs (79.0) 79.0 (52.9) 52.9 - Corporate (295.3) 289.5 (5.8) (8.4) - (8.4) 2.6 (31.0)% -------- ------- ------ ------ -------- ------ ----- ------ ------ ------ ----- ------ Total $2,092.8 $(187.1) $378.0 $190.9 9.1% $2,013.6 $180.4 $54.9 $235.3 11.7% $79.2 3.9% $(44.4) (18.9)% ======== ======= ====== ====== ======== ====== ===== ====== ====== ====== ====== ====== Core businesses $2,043.6 $(201.9) $378.0 $176.1 8.6% $1,997.3 $178.6 $54.9 $233.5 11.7% $46.3 2.3% $(57.4) (24.6)% Acquisitions/ Divestitures 49.2 14.8 - 14.8 16.3 1.8 - 1.8 32.9 13.0 -------- ------- ------ ------ -------- ------ ----- ------ ------ ------ ----- ------ Total $2,092.8 $(187.1) $378.0 $190.9 9.1% $2,013.6 $180.4 $54.9 $235.3 11.7% $79.2 3.9% $(44.4) (18.9)% ======== ======= ====== ====== ======== ====== ===== ====== ====== ====== ====== ======= ______________ (1) Excludes charges for restructuring and acquisition related charges, the loss on the sale of Cosmolab, and in the first quarter of 2002, the adoption of SFAS No. 142. See the reconciliation of these charges to "as reported" earnings on the Statements of Operations - Excluding Charges. 2003 2002 ------------------------------------- ------------------------------------- Excluding Charges Excluding Charges Reconciliation (1) Reconciliation (1) Year-over-year changes ---------------------- ---------------------- --------------------------------- Re- Ex- Ex Opera- Opera- Ex- Ex Opera- Net Sales Operating Income Net ported cluded Charges ting Net ting cluded Charges ting --------------- ---------------- Sales OI Charges OI Margin Sales OI charges OI Margin $ % $ % ----- ------ ------- ------- ------ ----- ------ ------- ------- ------ ------- ------ ------ ------- YTD: Rubbermaid $3,023.4 $196.3 $ 1.4 $197.7 6.5% $2,946.5 $260.2 $6.9 $267.1 9.1% $ 76.9 1.3% $(69.4) (26.0)% Sharpie 1,572.8 276.0 2.3 278.4 17.7% 1,593.0 277.9 3.2 281.1 17.6% $ (20.1) (0.8)% $ (2.7) (1.0)% Irwin 2,091.5 225.7 10.3 236.0 11.3% 1,727.3 127.3 10.0 137.3 7.9% $ 364.2 21.2% $ 98.7 71.9% Calphalon Home 1,062.3 46.6 4.3 50.8 4.8% 1,187.1 118.1 1.1 119.2 10.0% $(124.9) (8.7)% $(68.4) (57.4)% Restructuring Costs - (245.0) 245.0 - - (122.7) 122.7 - $ - $ - Corporate - (319.7) 289.5 (30.2) - (31.1) - (31.1) $ - $ 0.9 -------- ------ ------ ------ -------- ------ ----- ------ ------ ------ ------ ------ Total $7,750.0 $179.9 $552.8 $732.7 9.5% $7,453.9 $629.7 $143.9 $773.6 10.4% $ 296.1 4.0% $(40.9) (5.3)% ======== ====== ====== ====== ======== ====== ===== ====== ====== ====== ====== ====== Core businesses $7,400.8 $118.9 $552.8 $671.7 9.1% $7,404.1 $629.4 143.9 $773.3 10.4% $ (3.3) (0.0)% $(101.6) (13.1)% Acquisitions/ Divestitures 349.2 61.0 - 61.0 49.8 0.3 - 0.3 299.4 - 60.7 - -------- ------ ------ ------ -------- ------ ----- ------ ------ ------ ------ ------ Total $7,750.0 $179.9 $552.8 $732.7 9.5% $7,453.9 $629.7 $143.9 $773.6 10.4% $ 296.1 4.0% $(40.9) (5.3)% ======== ====== ====== ====== ======== ====== ===== ====== ====== ====== ====== ====== ______________ (1) Excludes charges for restructuring and acquisition related charges, the loss on the sale of Cosmolab, and in the first quarter of 2002, the adoption of SFAS No. 142. See the reconciliation of these charges to "as reported" earnings on the Statements of Operations - Excluding Charges.
Newell Rubbermaid Sales and Operating Income Three Months Ended December 31, 2003 Currency Analysis Year-over-year 2003 2002 Increase (Decrease) --------------------------------- -------- ---------------------- By Segment Sales as Currency Adjusted Sales as Excluding Including Currency Reported Impact Sales Reported Currency Currency Impact -------- -------- -------- -------- --------- --------- -------- Rubbermaid $ 786.4 $(20.3) $ 766.1 $ 738.8 3.7% 6.4% 2.6% Sharpie 404.2 (19.7) 384.5 415.0 (7.3)% (2.6)% 5.1% Irwin 567.7 (25.3) 542.4 469.7 15.5% 20.9% 4.7% Calphalon Home 334.5 (9.1) 325.4 390.1 (16.6)% (14.2)% 2.8% -------- ------- -------- -------- Total Company $2,092.8 $(74.4) $2,018.4 $2,013.6 0.2% 3.9% 3.7% ======== ======= ======== ======== By Geography United States $1,501.3 $ - $1,501.3 $1,472.4 2.0% 2.0% 0.0% Canada 105.4 (17.5) 87.9 84.0 4.6% 25.5% 19.9% -------- ------- -------- -------- North America 1,606.7 (17.5) 1,589.2 1,556.4 2.1% 3.2% 1.1% Europe 375.8 (48.0) 327.8 363.7 (9.9)% 3.3% 14.6% Central & South America 61.7 (2.3) 59.4 57.2 3.8% 7.9% 3.9% All Other 48.7 (6.7) 42.0 36.3 15.7% 34.2% 16.0% -------- ------- -------- -------- Total Company $2,092.9 $(74.5) $2,018.4 $2,013.6 0.2% 3.9% 3.7% ======== ======= ======== ======== Newell Rubbermaid Sales and Operating Income Twelve Months Ended December 31, 2003 Currency Analysis Year-over-year 2003 2002 Increase (Decrease) --------------------------------- -------- ---------------------- By Segment Sales as Currency Adjusted Sales as Excluding Including Currency Reported Impact Sales Reported Currency Currency Impact -------- -------- -------- -------- --------- --------- -------- Rubbermaid $ 3,023.4 $ (61.0) $ 2,962.4 $ 2,946.5 0.5% 2.6% 2.1% Sharpie 1,572.8 (51.1) 1,521.7 1,593.0 (4.5)% (1.3)% 3.4% Irwin 2,091.5 (88.6) 2,002.9 1,727.3 16.0% 21.1% 4.4% Calphalon Home 1,062.3 (30.4) 1,031.9 1,187.1 (13.1)% (10.5)% 2.9% --------- --------- --------- --------- Total Company $ 7,750.0 $ (231.1) $ 7,518.9 $ 7,453.9 0.9% 4.0% 3.1% ========= ========= ========= ========= By Geography United States $ 5,505.0 $ - $ 5,505.0 $ 5,454.2 0.9% 0.9% 0.0% Canada 373.8 (41.7) 332.1 312.5 6.3% 19.6% 12.6% --------- --------- --------- --------- North America 5,878.8 (41.7) 5,837.1 5,766.7 1.2% 1.9% 0.7% Europe 1,466.0 (197.5) 1,268.5 1,331.3 (4.7)% 10.1% 15.6% Central & South America 248.8 24.8 273.6 247.2 10.7% 0.6% (9.1)% All Other 156.4 (16.7) 139.7 108.7 28.5% 43.9% 12.0% --------- --------- --------- --------- Total Company $ 7,750.0 $ (231.1) $ 7,518.9 $ 7,453.9 0.9% 4.0% 3.1% ========= ========= ========= =========