Newell Brands to Reaffirm 2016 and 2017 Outlook at Morgan Stanley Global Consumer & Retail Conference

HOBOKEN, N.J.–(BUSINESS WIRE)–Newell Brands Inc. (NYSE: NWL) announced it will reaffirm its outlook
for fiscal years 2016 and 2017, as provided in its third quarter 2016
earnings press release dated October 28, 2016, during its presentation
tomorrow at the Morgan Stanley Global Consumer & Retail Conference.

Chief Executive Officer Michael Polk will present Tuesday, November 15,
at 8:00 a.m. ET. The presentation will be webcast live and may be
accessed through Events & Presentations in the Investor Relations
section of the Newell Brands website at www.newellbrands.com.
The webcast will be archived and available for replay following the live
presentation.

The company is reaffirming its full year 2016 guidance as follows:

       
2016 Full Year Outlook
 
Reported net sales growth 122.5% to 128.0%
 
Reported earnings per share $1.15 to $1.20
 
Core sales growth 3.5% to 4.0%
 
Normalized earnings per share $2.85 to $2.90
 

As of April 15, 2016, Newell Brands core sales include pro forma core
sales associated with the Jarden transaction as if the combination
occurred April 15, 2015. Core sales exclude the impact of foreign
currency, acquisitions (other than the Jarden acquisition) until their
first anniversary and planned and completed divestitures (including the
deconsolidation of Venezuela). Newell Brands expects to exit product
lines with annual sales of $75 million to $125 million by the end of
2018, which will be reflected as a negative impact on core sales.
Beginning with the second quarter of 2016, the company is excluding the
amortization of intangible assets associated with acquisitions from its
calculation of normalized earnings per share.

The company is reaffirming its full year 2017 guidance as follows:

       
2017 Full Year Outlook
 
Core sales growth 3% to 4%
 
Normalized earnings per share $2.85 to $3.05
 

2017 normalized earnings per share outlook includes $0.20 of dilution,
net of interest benefits, related to the planned divestiture of about 10
percent of the company’s portfolio. The 2017 guidance assumes a January
1, 2017 completion of divestitures of all businesses designated as held
for sale.

The company has presented forward-looking statements regarding
normalized earnings per share and core sales growth for 2017, each of
which is a non-GAAP financial measure. These non–GAAP financial measures
are derived by excluding certain amounts, expenses or income and/or
certain impacts, including the impact of foreign exchange or business
portfolio determinations, from the corresponding financial measures
determined in accordance with GAAP. The determination of the amounts
that are excluded from these non-GAAP financial measures is a matter of
management judgment and depends upon, among other factors, the nature of
the underlying expense or income amounts recognized in a given period.
We are unable to present a quantitative reconciliation of the
aforementioned forward-looking non-GAAP financial measures to their most
directly comparable forward-looking GAAP financial measures because such
information is not available and management cannot reliably predict all
of the necessary components of such GAAP measures without unreasonable
effort or expense. The unavailable information could have a significant
impact on the company’s full-year 2017 GAAP financial results.

About Newell Brands

Newell Brands (NYSE: NWL) is a leading global consumer goods company
with a strong portfolio of well-known brands, including Paper Mate®,
Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®, Jostens®, Marmot®,
Rawlings®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid
Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®,
Rubbermaid®, Contigo®, First Alert®, Waddington and Yankee Candle®. For
hundreds of millions of consumers, Newell Brands makes life better every
day, where they live, learn, work and play.

This press release and additional information about Newell Brands are
available on the company’s website, www.newellbrands.com.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of
Regulation G promulgated by the Securities and Exchange Commission and
includes a reconciliation of these non-GAAP financial measures to the
most directly comparable financial measures calculated in accordance
with GAAP.

The company uses certain non-GAAP financial measures that are included
in this press release and the additional financial information both in
explaining its results to stockholders and the investment community and
in its internal evaluation and management of its businesses. The
company’s management believes that these non-GAAP financial measures and
the information they provide are useful to investors since these
measures (a) permit investors to view the company’s performance using
the same tools that management uses to evaluate the company’s past
performance, reportable business segments and prospects for future
performance and (b) determine certain elements of management’s incentive
compensation.

The company’s management believes that core sales provides a more
complete understanding of underlying sales trends by providing sales on
a consistent basis as it excludes the impacts of acquisitions (other
than the Jarden acquisition, which is included in core sales on a pro
forma basis starting in the second quarter of 2016), planned or
completed divestitures, the deconsolidation of the company’s Venezuelan
operations and changes in foreign currency from year-over-year
comparisons. The effect of foreign currency on reported sales is
determined by applying a fixed exchange rate, calculated as the 12-month
average in the prior year, to the current and prior year local currency
sales amounts (excluding acquisitions and divestitures), with the
difference in these two amounts being the increase or decrease in core
sales, and the difference between the change in as reported sales and
the change in constant currency sales reported as the currency impact.
The company’s management believes that “normalized” earnings per share,
which exclude restructuring and other expenses and one-time and other
events such as costs related to certain product recalls, the
extinguishment of debt, certain tax benefits and charges, impairment
charges, pension settlement charges, discontinued operations, costs
related to the acquisition, integration and financing of acquired
businesses, amortization of intangible assets associated with
acquisitions (beginning in the second quarter of 2016), advisory costs
for process transformation and optimization initiatives, costs of
personnel dedicated to integration activities and transformation
initiatives under Project Renewal and certain other items, are useful
because they provide investors with a meaningful perspective on the
current underlying performance of the company’s core ongoing operations.

The company determines the tax effect of the items excluded from
normalized diluted earnings per share by applying the estimated
effective rate for the applicable jurisdiction in which the pre-tax
items were incurred, and for which realization of the resulting tax
benefit, if any, is expected. In certain situations in which an item
excluded from normalized results impacts income tax expense, the company
uses a “with” and “without” approach to determine normalized income tax
expense.

While the company believes that these non-GAAP financial measures are
useful in evaluating the company’s performance, this information should
be considered as supplemental in nature and not as a substitute for or
superior to the related financial information prepared in accordance
with GAAP. Additionally, these non-GAAP financial measures may differ
from similar measures presented by other companies.

Reconciliation of Non-GAAP Financial Measures

Reconciliations of the 2016 core sales growth and normalized earnings
per share outlooks are as follows:

       

Year Ending December 31, 2016

Estimated net sales growth (GAAP) 122.5 %       to     128.0 %
Less: Jarden net sales growth included in pro forma base 115.0 % to 120.0 %
Net sales growth, Adjusted Pro Forma (1) 7.5 % to 8.0 %
Less: Currency (1.0 %) to (2.0 %)
Acquisitions, net of divestitures (2) 6.0 % to 7.0 %
Venezuela deconsolidation (1.0

 

%)

Core Sales Growth, Adjusted Pro Forma 3.5 % to 4.0 %
 

(1) Adjusted pro forma reflects Jarden sales from April 16, 2016 and
2015, respectively.

(2) Acquisitions, net of divestitures represents estimated sales of The
Waddington Group, Inc., Jostens, Inc. and Elmer’s Products, Inc. until
the one year anniversary of their respective dates of acquisition, net
of the impacts of the divestiture of the Rubbermaid medical cart
business in August 2015 and the divestiture of the Levolor and Kirsch
window coverings brands (“Décor”) in June 2016.

       

Year Ending December 31, 2016

Diluted earnings per share $ 1.15       to       $ 1.20
Tools sale – tax on basis difference $ 0.33 to $ 0.35
Project Renewal and Project Lean restructuring and other costs $ 0.09 to $ 0.11
Integration costs to drive synergies $ 0.28 to $ 0.32
Estimated gain on sale of Décor $ (0.24 )
Jarden transaction-related costs, including debt/credit facility
extinguishment costs $ 0.19 to $ 0.21
Acquisition-related amortization* and inventory step-up $ 0.98 to $ 1.00
Normalized earnings per share $ 2.85 to $ 2.90
 

* Represents amortization of acquisition-related intangibles beginning
in the second quarter of 2016.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical in nature
constitute forward-looking statements. These forward-looking statements
relate to information or assumptions about the effects of sales, income,
earnings per share, operating income, operating margin or gross margin
improvements or declines, Project Renewal, capital and other
expenditures, cash flow, dividends, restructuring and other project
costs, costs and cost savings, inflation or deflation, particularly with
respect to commodities such as oil and resin, debt ratings, changes in
exchange rates, expected benefits and financial results from the Jarden
transaction and other recently completed acquisitions and related
integration activities and planned divestitures and management’s plans,
projections and objectives for future operations and performance. These
statements are accompanied by words such as “anticipate,” “expect,”
“project,” “will,” “believe,” “estimate” and similar expressions. Actual
results could differ materially from those expressed or implied in the
forward-looking statements. Important factors that could cause actual
results to differ materially from those suggested by the forward-looking
statements include, but are not limited to, our dependence on the
strength of retail, commercial and industrial sectors of the economy;
competition with other manufacturers and distributors of consumer
products; major retailers’ strong bargaining power and consolidation of
our retail customers; changes in the prices of raw materials and sourced
products and our ability to obtain raw materials and sourced products in
a timely manner from suppliers; our ability to develop innovative new
products and to develop, maintain and strengthen our end-user brands,
including the ability to realize anticipated benefits of increased
advertising and promotion spend; product liability, product recalls or
regulatory actions; our ability to expeditiously close facilities and
move operations while managing foreign regulations and other
impediments; a failure of one of our key information technology systems
or related controls; our ability to attract, retain and motivate key
employees; future events that could adversely affect the value of our
assets and require impairment charges; our ability to improve
productivity and streamline operations; changes to our credit ratings;
significant increases in the funding obligations related to our pension
plans due to declining asset values, declining interest rates or
otherwise; the imposition of tax liabilities greater than our provisions
for such matters; the risks inherent in our foreign operations,
including exchange controls and pricing restrictions; our ability to
execute our new corporate strategy; our ability to complete planned
divestitures, including our ability to obtain the regulatory approvals
required to complete the Tools divestiture; our ability to successfully
integrate acquired businesses, including the recently acquired Jarden
business; our ability to realize the expected benefits and financial
results from our recently acquired businesses and planned divestitures;
and those factors listed in our filings with the Securities and Exchange
Commission (including the information set forth under the caption “Risk
Factors” in the Company’s Annual Report on Form 10-K). Changes in such
assumptions or factors could produce significantly different results.
The information contained in this news release is as of the date
indicated. The company assumes no obligation to update any
forward-looking statements contained in this news release as a result of
new information or future events or developments.

Contacts

Newell Brands Inc.
Investor Contact:
Nancy
O’Donnell, +1-770-418-7723
Vice President, Investor Relations
nancy.odonnell@newellco.com
or
Newell
Brands Inc.
Media Contacts:
Tom
Sanford, +1-973-600-3880
Vice President, Global Communications
tom.sanford@newellco.com
or
Weber
Shandwick
Liz Cohen, +1-212-445-8044
liz.cohen@webershandwick.com

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