Newell Brands (NWL) Q4 2013 earnings summary

Executive summary

• Core sales grew 3.2% in 2013; normalized EPS rose 9.6% to a record $1.83, and operating cash flow was $605 million.

• The Growth Game Plan shifted resources toward innovation, marketing, customer development and supply-chain capabilities; cumulative Project Renewal savings reached ~$200 million through 2013.

Financial highlights

• Net sales were $5,692.5 million in 2013, compared with $5,579.9 million in 2012; reported operating income was $621.0 million.

• Normalized operating income was $757.0 million versus $727.4 million in 2012; normalized EPS was $1.83 versus $1.67.

• Reported diluted EPS was $1.63 in 2013; core sales grew 3.2% excluding currency and 2.0% including currency.

• Operating cash flow was $605 million; outstanding debt declined $82 million and cash increased $43 million.

Outlook and guidance

• 2014 was expected to be the biggest innovation year to date, with major programs across all segments and increased use of the Kalamazoo design center.

• Advertising and promotion investment in Tools, Commercial Products and Writing was slated to rise further in 2014; e-commerce was a major growth initiative, with its budget more than doubled.

• Priorities included supply-chain savings, direct sourcing, regional operational consolidations, improved working capital and expanded customer and e-commerce capabilities.