Newell Rubbermaid swings to profit in fourth quarter

Newell Rubbermaid Inc., the maker of Sharpie pens and Rubbermaid trash cans, said its restructuring plan is working as it swung to a profit in the fourth quarter despite a slight drop in sales.

The results, announced before the market opened Thursday, beat Wall Street expectations.

The Atlanta-based consumer products manufacturer said it earned $124.1 million, or 45 cents a share, in the three months ending Dec. 31, compared to a loss of $211.6 million, or 77 cents a share, for the same period a year ago.

Excluding one-time charges, the company said it earned a profit of $127 million, or 46 cents a share. On that basis, analysts surveyed by Thomson First Call were expecting earnings of 44 cents a share.

Revenue in the October-December period was $1.81 billion, a 1 percent decline from the $1.83 billion recorded a year ago.

The company said the sales decline in the quarter reflected foreign currency and pricing benefits, but that was offset by the planned exit of certain low-margin product lines, primarily in the Rubbermaid Home Products division.

Shares of Newell Rubbermaid fell 21 cents to $22.70 in early trading Thursday on the New York Stock Exchange.

Going forward, Newell Rubbermaid said it expects internal sales growth to be flat. It said sales in 2005 are expected to be in the range of a decline of 1 percent to an addition of 1 percent. The company expects earnings per share from continuing operations for all of 2005 to be in the range of $1.38 to $1.48.

For all of 2004, Newell Rubbermaid said it lost $116.1 million, or 42 cents a share, compared to a loss of $46.6 million, or 17 cents a share, in 2003. Twelve-month revenue was $6.75 billion, compared to $6.90 billion recorded a year ago.

Newell Rubbermaid has been cutting costs and restructuring its business for two years.

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