by Christopher Freeburn | October 26, 2012 10:29 am
Shares of Newell Rubbermaid (NYSE:NWL) surged in Friday trading after the company reported better-than-expected earnings and said it plans to shed about 2,000 jobs by mid-2015 under a restructuring plan. Newell also announced that it would increase its quarterly dividend by 15 cents a share.
In the third quarter, Newell said it earned $108.3 million, compared to a loss of $177.6 million in the same period last year. Adjusted EPS was 47 cents, topping the 44 cents that Wall Street had forecast, Reuters noted.
Investors liked the news, sending Newell shares up more than 4%.
Quarterly sales slipped to $1.54 billion, down 0.9% from last year, but matched analysts’ expectations.
The latest restructuring will reduce the number of operating units from nine to six and will consolidate Newell’s production and distribution infrastructure, cutting costs by between $180 million and $225 million in two-and-a-half years. The reorganization will result in charges of between $225 million and $250 million.
Newell reiterated its prior earnings forecast for the year, predicting an adjusted profit of between $1.63 and $1.69 a share.
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