Newell Brands to Reaffirm Fiscal Year 2016 Outlook at Barclays Global Consumer Staples Conference

Guía de Regalos

ATLANTA–(BUSINESS WIRE)–Newell Brands Inc. (NYSE: NWL) announced it will reaffirm its fiscal
year 2016 outlook, as provided in its second quarter 2016 earnings press
release dated July 29, 2016, during its presentation today at the
Barclays Global Consumer Staples Conference.

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

   
Year Ending December 31, 2016
Core sales growth 3.0% to 4.0%
 
Normalized earnings per share $2.75 to $2.90
 

Newell Brands core sales include pro forma core sales associated with
the Jarden acquisition as if the combination occurred April 15, 2015.
Core sales exclude the impact of foreign currency, all acquisitions
(other than the Jarden acquisition) until their first anniversary and
all planned and completed divestitures (which includes the
deconsolidation of Venezuela). Core sales include the negative impact of
planned product line exits. Newell Brands expects to exit product lines
with annual sales of $250 million to $300 million over the next two to
three years.

Chief Executive Officer Michael Polk will present today at 1:30 p.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.

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®, Irwin®, Lenox®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®,
Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®,
Rubbermaid®, Contigo®, First Alert®, Waddington and Yankee Candle®.
Driven by a sharp focus on the consumer, leading investment in
innovation and brands, and a performance-driven culture, Newell Brands
helps consumers achieve more 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 planned and completed
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, is useful
because it provides 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) 122.0 %   to   127.0 %
Less: Jarden net sales growth included in pro forma base   115.0 %   to     120.0 %
Net sales growth, adjusted pro forma (1) 7.0 % 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 3.0 % 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 $ 1.45 to $ 1.60
Project Renewal and Project Lean restructuring and other costs $ 0.25 to $ 0.35
Integration costs to drive synergies $ 0.15 to $ 0.25
Estimated gain on sale of Décor* $ (0.24 ) to $ (0.26 )

Jarden transaction-related costs, including debit/credit facility
extinguishment costs

$ 0.15 to $ 0.25
Acquisition-related amortization** and inventory step-up $ 0.75     to   $ 0.95  
Normalized earnings per share $ 2.75 to $ 2.90
 

* Gain on sale of Décor in the second quarter of 2016 was $160
million but subject to customary working capital adjustments

** 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 in
light of the continuation or escalation of the global economic slowdown
or regional sovereign debt issues; currency fluctuations; 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 complete
planned divestitures; 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

Investor Contact:
Newell Brands
Nancy
O’Donnell, +1-770-418-7723
Vice President, Investor Relations
nancy.odonnell@newellco.com
or
Media
Contacts
:
Newell Brands
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