Press release
Newell Brands Announces Fourth Quarter and Full Year 2019 Results
Q4 Net and Core Sales, EPS and Operating Cash Flow Ahead of Outlook Delivers Full Year Operating Cash Flow of More Than $1 Billion Provides Initial Guidance
About this update from Newell Brands Inc.
[{"type":"text","content":"\nQ4 Net and Core Sales, EPS and Operating Cash Flow Ahead of Outlook\n\n\nDelivers Full Year Operating Cash Flow of More Than $1 Billion\n\n\nProvides Initial Guidance for 2020\n\n ATLANTA--(BUSINESS WIRE)--\nNewell Brands (NASDAQ: NWL) today announced its fourth quarter and full year 2019 financial results.\n\n\nFourth Quarter 2019 Executive Summary\n\n\n\nNet sales were $2.6 billion, a decline of 3.1 percent compared with the prior year period.\n\n\n\n\nCore sales declined 1.5 percent compared with the prior year period. Core sales increased at four of eight business units compared with the prior year period.\n\n\n\n\nReported operating margin was 5.1 percent compared with 2.7 percent in the prior year period. Normalized operating margin was 11.3 percent, unchanged compared with the prior year period.\n\n\n\n\nReported diluted earnings per share for the total company were $1.87 compared with $0.41 in the prior year period, largely attributable to a more favorable tax benefit compared to the prior year period.\n\n\n\n\nNormalized diluted earnings per share for the total company were $0.42 compared with $0.66 in the prior year period, with the change attributable to the foregone contribution from divested businesses.\n\n\n\n\nFull year 2019 operating cash flow was $1.0 billion, compared with $680 million in the prior year, reflecting strong working capital progress, which more than offset the foregone contribution from divested businesses.\n\n\n\n\nThe company repaid approximately $600 million in debt during the quarter.\n\n\n\n\nThe company initiated its 2020 full year outlook for normalized earnings per share of $1.46 to $1.56 per share and operating cash flow of $1.0 billion to $1.15 billion.\n\n\n\n\nThe sale of The U.S. Playing Cards Company was completed, bringing the company’s Accelerated Transformation Plan to a close.\n\n\n\n“2019 was an important year of inflection for Newell Brands,” said President and Chief Executive Officer Ravi Saligram. “We developed a turnaround framework and delivered consistently against our goals in the early stages of the turnaround. Four of our eight business units delivered core sales growth in 2019, our international business returned to growth, we generated operating margin improvement of 50 bps reflecting diligent cost management and we more than doubled free cash flow. We’ve strengthen...