Newell's sales more than double with Jarden boost

Newell Brands Inc. reported a substantial boost in the first quarter thanks to the impact of the Jarden acquisition.

“Our first quarter results provide strong evidence of our team’s capacity to perform while we transform,” said Newell Brands Chief Executive Officer Michael Polk. “We delivered competitive core sales growth of 2.5 percent despite significant organization and portfolio change. Our core sales results were broad based with growth in all four regions and across four of five segments. Our international growth coupled with very strong e-commerce results more than offset the continuing impact of inventory de-stocking in U.S. mass channels. Our operating margin was well ahead of plan driven by strong cost synergies and stringent discretionary cost management."

Net sales for the quarter were up 148.4% to $3.3 billion, which included core sales growth of 2.5%.

Overall, net income of $639 million compared with net income of $40.5 million in the prior year, attributable to increased operating profits and a $784 million gain on the sale of the Tools business.

The company also raised its guidance for full-year 2017 to normalized diluted earnings per share of $3.00 to $3.20 compared with previous guidance of $2.95 to $3.15.

Newell reaffirmed full year 2017 net sales guidance of $14.52 to $14.72 billion, representing 9.5 to 11% growth, and core sales growth guidance of 2.5 to 4.0%.

“We have had a good start to 2017 and are on our way to unlock the transformative value creation associated with our long term guidance," added Polk. "We are confident that simultaneous growth and margin development fueled by savings and synergies will generate strong cash flow, leading to rapid deleveraging and then more aggressive value-creating uses of capital."

"We believe this transformative value creation story is unique to Newell Brands given our leading brand positions in large global categories, the inherent opportunities presented through the new scale of the company, the investments we are making in new capabilities and the strong cash generative nature of our businesses."