Newell Rubbermaid today announced third quarter results and reaffirmed full-year core sales, normalized EPS and operating cash flow guidance. The company also announced Project Renewal, an initiative that will simplify and realign the structure of the company, freeing up resources to be reinvested for profitable growth and strengthened marketing and selling capabilities.

Michael Polk, President and Chief Executive Officer, commented, "Our third quarter results represent a solid step forward. Core sales growth, operating income margin improvement and operating cash flow came in as expected and improved meaningfully versus our first half and year ago results. These are good numbers in the context of a really tough macro environment and represent progress towards our goal of delivering consistent predictable results and sustainable profitable growth."

"Our return to growth in the third quarter gives us the confidence to take the next important step toward our future. This morning we announced Project Renewal, an initiative designed to reduce complexity in our operating structure and realign resources to our highest potential businesses. We plan to achieve savings of approximately$90to$100 millionover the next twelve to eighteen months, and invest the majority of these funds back into the business in increased brand building support, strengthened demand creation capabilities in customer development and marketing, and the development of our business system in emerging markets. We are making these changes with the ambition to create a bigger, faster growing, more global and more profitable Newell Rubbermaid."

Executive Summary

- Third quarter 2011 net sales were$1.55 billion, an increase of 5.8 percent versus prior year results. Core sales, which exclude the impact of changes in foreign currency, rose 3.3 percent.

- Normalized earnings per share in the third quarter were up 7.1 percent to$0.45compared with$0.42in the prior year period. Normalized earnings per share growth was primarily due to the benefit of flow through from increased sales.

- The company reaffirmed its previous guidance for full year 2011 core sales growth of one to three percent, normalized earnings per share in the range of$1.55 to $1.62and operating cash flow of$520 to $560 million.

- Diluted net loss per share for the quarter, as reported, was$0.61. The 2011 third quarter earnings results include a non-cash impairment charge of$382.6 million, or$1.05per share, to write down to fair value goodwill primarily related to the company's Baby & Parenting and Hardware global business units.

- Operating cash flow was$295.3 million, an increase of 51.8 percent compared with the year-ago period, due to tight working capital management and the timing of working capital sources and uses.

- The company reduced debt by$213.6 millionin the third quarter, driving debt to the lowest level since the fourth quarter of 2007. The company also paid$23.5 millionin dividends and$24.4 millionfor the repurchase of 1.9 million shares under its recently authorized$300 millionshare repurchase plan.

- The company divested its Bernzomatic hand torch and solder business and recorded a net loss from discontinued operations of$11.2 million, or$0.04per share, reflecting the income from discontinued operations and the loss on disposal. Information presented for both current and prior year periods in this release has been restated to reflect the Bernzomatic results as discontinued operations.

- The company announced Project Renewal, a global initiative designed to reduce the complexity of the organization and increase investment in the most significant growth platforms within the business, funded by a reduction in structural SG&A costs. BeginningJanuary 1, 2012, the company will reduce the number of its operating groups from three to two and the number of its global business units from thirteen to nine. Project Renewal is expected to result in aggregate restructuring charges of$90 to $100 million, to be substantially incurred by the end of 2012.

Project Renewal

The company today announced Project Renewal, a global initiative designed to reduce the complexity of the organization and increase investment in the most significant growth platforms within the business, funded by a reduction in structural SG&A costs. Cost savings will be achieved in large part through a consolidation of the current three operating groups into two, and of thirteen global business units into nine. The new operating groups, which will be operational effectiveJanuary 1, 2012, will be named Newell Consumer and Newell Professional. Newell Consumer will be headed byPenny McIntyre, currently President, Office Products, and Newell Professional will be headed byWilliam Burke, currently President, Tools, Hardware & Commercial Products. The final alignment of the global business units into the two groups will be announced at a later date.

In addition, the consolidation of two manufacturing facilities and two distribution centers will be implemented as part of the plan, with the goal of increasing operational efficiency, reducing costs, and improving gross margin.

Project Renewal is expected to generate cost savings of approximately$90 to $100 millionwhen fully implemented by the end of 2012. The majority of the associated savings is expected to be realized in 2012 and will be reinvested in the business to unlock accelerated growth. The company expects to incur cash costs of$75 to $90 millionand record pretax restructuring charges in the range of$90 to $100 millionover the same period. Charges of between$30 and $40 millionare expected to be incurred in the fourth quarter of 2011. The company estimates a total net headcount reduction of approximately 500 resulting from the plan.

As part of Project Renewal,Jay Gouldwill be leaving the company effectiveJanuary 1, 2012. "I want to thank Jay for his leadership and service at Newell Rubbermaid," said Polk. "After the CEO succession process, Jay was instrumental during my transition into the role and I appreciate his assistance in making that process seamless. I would like to wish him success as he leavesNewell Rubbermaidto pursue another leadership position."