Reports Third Quarter 2020 Financial Results
ATLANTA, GA (STL.News) Newell Brands Friday reported third quarter 2020 financial results and made statements:
“We delivered quite strong third quarter results, including broad-based sales growth underpinned by strong consumption, and considerable improvement in operating margin and cash flow generation, as the company rallied behind our strategic aims,” said Ravi Saligram, Newell Brands President and CEO. “We’re going into the fourth quarter with a renewed sense of energy as we pursue need in certain high-growth categories. We stay laser focused on increasing shareholder value by sustaining growth momentum, forcing meaningful innovations that leverage consumer trends, building a competitive advantage throughout omni-channel and lowering organizational complexity.”
Chris Peterson, Chief Financial Officer and President, Business Operations, stated,”Stronger than expected top line growth, along with disciplined expense control, restructuring economies, sustained progress on complexity reduction and FUEL productivity savings drove considerable year-over-year improvement in operating margin. Diligent implementation behind operating capital initiatives resulted in a significant decrease in the company’s cash conversion cycle period, together with operating cash flow nearly doubling year-over-year through the first three quarters of 2020. For the entire year, we hope to generate operating cash flow of $1.1 to $1.2 billion, with free cash flow productivity well over 100%”
Newell Brands Third Quarter 2020 Executive Summary
- Net sales were $2.7 billion, an increase of 5.1 percent compared with the prior year period.
- Core sales grew 7.2 percent compared with the prior year period. Seven of eight business units and all major regions delivered core sales growth.
- Reported operating margin was 13.4 percent compared with a negative 33.4 percent in the prior year period. Normalized operating margin was 14.9 percent compared with 12.7 percent in the prior year period.
- Reported diluted earnings per share were $0.71 compared with a $1.48 diluted loss per share in the prior year period.
- Normalized diluted earnings per share were $0.84 compared with $0.73 per share in the prior year period.
- Year to date operating cash flow was $820 million compared with $424 million in the prior year period, with the improvement driven by working capital.
- The company redeemed the remaining $305 million of its 4.7 percent senior notes upon maturity.
- The company’s leverage ratio improved to 3.9x at the end of the third quarter from 4.6x at the end of the previous quarter.
- The company reinstituted guidance for 2020, with projected full-year normalized earnings per share of $1.63 to $1.69 and operating cash flow of $1.1 to $1.2 billion.
NOTE: this is NOT the complete release.
View complete release at: