Newell Rubbermaid announced its fourth quarter 2015 financial results. Net sales were $1.56 billion compared with $1.53 billion in the prior year.
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Core sales grew 6.2 percent. Net sales growth includes a 150 basis point net contribution from acquisitions and planned/completed divestitures, and a negative 540 basis point impact from foreign currency.
Normalized gross margin expanded by 80 basis points to 38.5 percent, as benefits from productivity, pricing and favorable input costs more than offset the negative impacts of foreign currency.
Reported gross margin was 38.3 percent, a 70 basis point improvement versus prior year.
Normalized operating margin was 13.7 percent, a 30 basis point improvement compared with the prior year, despite a 70 basis point increase in advertising and promotion. Normalized operating income was $214.2 million compared with $204.6 million in the prior year period.
Fourth quarter reported operating margin was 6.5 percent and operating income was $101.9 million, compared with 7.4 percent and $113.5 million, respectively, in the prior year.
The normalized tax rate was 23.2 percent compared with 26.5 percent in the prior year. On a reported basis, a tax benefit of $13.1 million was recorded in the quarter compared with tax expense of $10.4 million in the prior year.
Normalized net income was $151.1 million compared with $135.3 million in the prior year. Normalized diluted earnings per share were $0.56, an increase of 14.3 percent versus $0.49 in the prior year.
Reported net income was $13.2 million compared with $52 million in the prior year. Reported diluted earnings per share were $0.05 compared with $0.19 in the prior year.
Operating cash flow was $277.7 million compared with $290.8 million in the prior year period.
Full year results
Net sales for the full year ended December 31, 2015 were $5.92 billion, an increase of 3.3 percent compared with $5.73 billion in the prior year. Core sales increased 5.5 percent, or 3.9 percent excluding the contribution from operations in Venezuela.
Net sales growth includes a positive 360 basis point net impact from acquisitions and planned/completed divestitures, and a negative 580 basis point impact from foreign currency.
Normalized gross margin was 39.2 percent, an increase of 40 basis points versus the prior year.
Reported gross margin was 39 percent, a 50 basis point improvement versus prior year.
Normalized operating margin increased 50 basis points to 14.3 percent compared with 13.8 percent in the prior year. Normalized operating income was $848.6 million compared with $792.6 million in the prior year.
Reported operating margin was 10.2 percent compared with 10.6 percent in the prior year. Full year 2015 reported operating income was $601.4 million compared with $604.7 million in the prior year.
Normalized net income was $590.7 million compared to $557.8 million in the prior year. Normalized diluted earnings per share were $2.18 compared with $2.00 in the prior year, an increase of 9 percent despite a negative foreign currency impact of approximately 39 cents.
Reported net income was $350 million compared with $377.8 million in the prior year. Reported diluted earnings per share were $1.29 compared with $1.35 in the prior year.
Operating cash flow was $565.8 million compared with $634.1 million in the prior year, reflecting increased cash used for restructuring and other Project Renewal initiatives and a voluntary $70 million pension contribution in 2015. ■