Newell Rubbermaid Cuts Full Year EPS Growth Estimate to 5-10 Percent

Newell Rubbermaid NWL today announced that in light of disappointing economic conditions and weak consumer spending trends in the U.S. market, the company is adopting a more conservative 2011 sales and earnings outlook. Newell Rubbermaid now anticipates 2011 core sales growth in the range of three to four percent. The company's updated gross margin outlook is for expansion of between 40 and 60 basis points, reflecting increased cost inflation versus earlier expectations. Revised full year normalized diluted EPS growth is projected between five and ten percent (or $1.60 to $1.67). (A reconciliation to “normalized” results is included below.) The guidance provided by the company in its April 29, 2011 first quarter earnings release comprised core sales growth of four to five percent, gross margin expansion of 50 to 75 basis points and normalized diluted earnings per share growth of ten to twelve percent. The company made no change to its guidance for 2011 operating cash flow of more than $550 million.