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The Atlanta, Georgia-based company's third-quarter net income controlling interest increased to $85.5 million or $0.28 per share from $55 million or $0.20 per share in the same quarter last year. The results included Project Acceleration restructuring costs of $27 million in the latest period, and $13.5 million in the year-ago quarter.
Excluding items, normalized net income for the quarter rose to $106.2 million or $0.38 per share from $98.9 million or $0.35 per share in the year ago quarter.
The company had previously projected third-quarter normalized earnings to range between $0.25 and $0.35 per share.
On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.35 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 17.7% to $1.449 billion from $1.760 billion in the comparable quarter last year. Analysts expected the company to report revenues of $1.47 billion for the quarter.
Core sales were down almost 10%, while planned product line exits and foreign currency translation reduced net sales by 6% and 2%, respectively.
In Home & Family segment, third-quarter net sales dropped to $596.8 million from $712.9 million. Office Products generated $448.4 million for the quarter, lower than $536 million generated last year. The Tools, Hardware & Commercial Products reported quarterly revenues of $403.8 million, a decline from last year's $511.4 million.
Geographically, sales in the U.S. dropped to $1.009 billion from $1.224 billion in the previous year. Canada contributed $91.8 million to total sales, down from last year's $113.5 million. Sales from Europe, Middle East, and Africa was $196.4 million, compared to $255.5 million last year. In Latin America, sales declined to $74 million from $77.7 million. Asia Pacific sales slipped to $78 million from $89.3 million.
Operating income dropped to $165.3 million from $166.9 million. Gross margin improved to 37.4% from 32.6%, helped by product line exits and moderating input costs.
Cost of products sold declined to $906.4 million from $1.186 billion. Non-operating expenses declined to $36.3 million from $93.6 million last year.
For the second quarter, the company's net income had increased to $105.7 million or $0.37 per share from $92.5 million or $0.33 per share in the prior-year quarter. Quarterly net sales fell 17.6% to $1.50 billion from $1.83 billion in the corresponding quarter of the previous year.
For the nine months of the fiscal, net income controlling interest grew to $224.9 million or $0.78 per share from $204.4 million or $0.73 per share in the previous year. Net sales declined to $4.157 billion from $5.019 billion in the prior year.
Looking ahead to the fourth quarter, the company, which makes Rubbermaid containers, expects normalized earnings of $0.23-$0.28 per share. Including restructuring costs and impairment charges, earnings are expected in the range of $0.16-$0.21 per share.
Net sales for the quarter are expected to decline 2%-4%. Core sales are expected to be flat to slightly negative for the fourth quarter and product line exits are projected to reduce sales by another 3%-5%. Foreign currency translation is expected to increase sales by about 2%.
Wall Street looks for fourth-quarter earnings in the range of $0.23-$0.31 per share with a consensus of $0.27 per share, on revenues of $1.38 billion.
For the full year, the company raised its guidance for normalized earnings per share to a range of $1.27-$1.32 per share. Including restructuring costs and impairment charges, earnings for the year are anticipated in the range of $0.93-$0.98 per share.
In July, the company had lifted its 2009 guidance for normalized earnings to $1.15 - $1.30 per share from its prior outlook range of $1.00-$1.25 per share.
The company continues to expect that net sales for the full year will be at the unfavorable end of its guidance of a 10%-15% decline. Core sales are expected to decline in the high single digit percent range. Product line exits are expected to contribute 4%-6% of the sales decline and foreign currency translation is expected to reduce sales by 2%. Acquisitions are expected to contribute about 1% of sales growth.
Analysts expect full-year earnings of $1.28 per share on revenues of $5.56 billion.
NWL closed Tuesday's regular trade at $14.82, flat with the previous close, on 5.80 million shares.
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