Exhibit 99.1

 

		> News Release

 

Newell Rubbermaid Reports Fourth Quarter 2010 Results

»     Core Sales Growth of 4.9%

»     Normalized EPS of $0.34; a 26% Increase Compared to Prior Year Quarter

»     Provides 2011 Guidance for 10% to 12% Normalized EPS Growth

ATLANTA, January 27, 2011 – Newell Rubbermaid (NYSE: NWL) today announced fourth quarter 2010 financial results, including normalized earnings per share of $0.34, a 26 percent improvement over prior year results, core sales growth of 4.9 percent and gross margin of 37.1%.

“I’m pleased to report the conclusion of a successful year for Newell Rubbermaid,” said Mark Ketchum, President and CEO. “We finished out 2010 with very positive fourth quarter results. For both the quarter and the full year, we delivered mid-single digit core sales growth, year-over-year gross margin improvement, strong double-digit normalized EPS growth and robust operating cash flow. As I look back on 2010, I think it’s most notable that we consistently grew cores sales in a sluggish economy and delivered on all of our financial targets, while continuing to advance our long-term growth strategies. By staying focused on the drivers that are in our control, we have created our own momentum to deliver once again a full year of the growth trifecta – sales growth, gross margin expansion and normalized earnings growth. We exit 2010 with positive momentum that provides even greater confidence in our 2011 prospects.”

Net sales in the fourth quarter were $1.47 billion, an increase of 3.4 percent compared with the prior year. Core sales improved 4.9 percent. The year over year impact of last year’s product line exits reduced net sales by 0.8 percent, and foreign currency translation had a negative 0.7 percent impact on sales.

Gross margin for the quarter was 37.1 percent, up 10 basis points from last year as improved product mix and productivity more than offset the impact of input cost inflation.

Fourth quarter operating income, on a normalized basis, was $152.6 million, or 10.4 percent of sales, excluding $30.8 million of Project Acceleration restructuring costs and restructuring related costs incurred in connection with the European Transformation Plan. In 2009, normalized operating income was $142.3 million, or 10.0 percent of sales, excluding Project Acceleration restructuring costs of $13.0 million.

The tax rate for the quarter was 21.2% compared to 29.3% in the prior year. The primary drivers of the decreased tax rate relate to recent U.S. legislation changes and improved profitability outside the United States, which allowed the company to benefit from foreign losses that had not previously been available.

Normalized earnings were $0.34 per diluted share compared to prior year normalized results of $0.27 per diluted share, driven by sales growth, improved gross margin, reduced interest expense and a lower tax rate. For the fourth quarter 2010, normalized diluted earnings per share exclude $0.08 per diluted share for restructuring and restructuring related costs, net of tax. For the fourth quarter 2009, normalized earnings per share excluded $0.04 per diluted share for Project Acceleration restructuring costs, net of tax, $0.02 per diluted share of dilution related to

 

3 Glenlake Parkway | Atlanta, GA 30328 | Phone +1 (770) 418-7000 | www.newellrubbermaid.com | NYSE: NWL

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		> News Release

 

the conversion feature of the convertible notes issued in March 2009 and the impact of associated hedge transactions, and $0.01 per diluted share associated with the company’s adoption of the parallel rate to translate the results of its Venezuelan operations beginning in the fourth quarter of 2009. (A reconciliation of the “as reported” results to “normalized” results is included below.)

Net income, as reported, was $75.7 million, or $0.25 per diluted share, for the fourth quarter. This compares to net income of $60.6 million, or $0.20 per diluted share, in the prior year.

The company generated operating cash flow of $204.7 million during the fourth quarter, compared to $187.1 million in the comparable period last year. Capital expenditures were $56.6 million in the fourth quarter compared to $45.6 million in the prior year.

A reconciliation of the fourth quarter 2010 and last year’s results is as follows:

 

		Q4 2010				Q4 2009
Diluted earnings per share (as reported)		$	0.25			$	0.20
Restructuring and restructuring related costs, net of tax		$	0.08			$	0.04
Convertible notes dilution		$	0.00			$	0.02
Other items, net of tax		$	0.00			$	0.01
“Normalized” EPS		$	0.34			$	0.27

Full Year Results

Net sales for the twelve months ended December 31, 2010 increased 3.3 percent to $5.76 billion, compared to $5.58 billion in the prior year. Core sales increased 4.7 percent for the full year. Foreign currency translation had a negligible impact on net sales, while the year over year impact of last year’s product line exits lowered net sales by 1.4 percent.

Gross margin was 37.7 percent, a 100 basis point improvement versus the prior year. Productivity gains and improved product mix more than offset the effect of input cost inflation.

Normalized earnings were $1.52 per diluted share compared to $1.31 per diluted share in the prior year. For the twelve months ended December 31, 2010, normalized earnings exclude $0.24 per diluted share for restructuring and restructuring related costs, net of tax; $0.10 per diluted share of dilution related to the conversion feature of the convertible notes issued in March 2009 and the impact of associated hedge transactions; $0.44 per diluted share in charges and other impacts associated with the Capital Structure Optimization Plan; a benefit of $0.21 reflecting the favorable resolution of a tax examination and a benefit of $0.01 per diluted per share related to hyperinflationary accounting for the company’s Venezuelan operations. For the twelve months ended December 31, 2009, normalized earnings excluded the same items as those in the fourth quarter 2009, as well as one-time costs of $0.01 per diluted share incurred for the early retirement of $325 million principal amount of medium-term notes. (A reconciliation of the “as reported” results to “normalized” results is included below.)

 

3 Glenlake Parkway | Atlanta, GA 30328 | Phone +1 (770) 418-7000 | www.newellrubbermaid.com | NYSE: NWL

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		> News Release

 

Net income, as reported, was $292.8 million, or $0.96 per diluted share. This compares to $285.5 million, or $0.97 per diluted share, in the prior year.

“Another notable strategic milestone in 2010 was the completion of Project Acceleration,” said CEO Mark Ketchum. “This multi-year restructuring program was designed to consolidate and streamline our manufacturing and supply chain operations to achieve greater efficiency and best cost. Since the inception of Acceleration, we have reduced our manufacturing footprint by 60% and optimized our distribution and transportation network. By the end of 2011 we will have delivered in excess of $220 million in annualized savings. Project Acceleration required significant effort and resources; and with that hard work behind us, we are now better able to focus on growth.”

Cumulative restructuring costs incurred through the completion of Project Acceleration in 2010 totaled $498 million.

The company generated operating cash flow of $582.6 million during 2010 compared to $602.8 million in the prior year. Capital expenditures were $164.7 million, compared to $153.3 million in the prior year.

A reconciliation of the full year 2010 and last year’s results is as follows:

 

		FY 2010				FY 2009
Diluted earnings per share (as reported)		$	0.96			$	0.97
Restructuring and restructuring related costs, net of tax		$	0.24			$	0.26
Convertible notes dilution		$	0.10			$	0.06
Capital structure optimization plan		$	0.44			$	0.00
Benefit from the resolution of a tax examination		($	0.21	)		$	0.00
Other items, net of tax		($	0.01	)		$	0.02
“Normalized” EPS		$	1.52			$	1.31

2011 Full Year Outlook

The company expects core sales to increase four to five percent in 2011 and estimates that foreign currency will have a negligible impact on sales. Gross margin is expected to improve 50 to 75 basis points with the combination of productivity, mix and pricing more than offsetting input cost inflation.

 

3 Glenlake Parkway | Atlanta, GA 30328 | Phone +1 (770) 418-7000 | www.newellrubbermaid.com | NYSE: NWL

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		> News Release

 

The company expects normalized earnings per diluted share to increase 10 to 12 percent in 2011.

The company’s 2011 normalized EPS expectation excludes between $80 and $85 million of restructuring and other Plan-related costs associated with the company’s European Transformation Plan. The company expects to realize annualized net income improvement of $55 to $65 million, upon completion of the European Transformation Plan, and estimates the initiative will result in aggregate restructuring and other Plan-related costs of $110 to $115 million. The costs will be substantially incurred by the end of 2011, and the bulk of the benefits will accrue beginning in the middle of 2012. The Plan’s benefit and cost guidance compares to the previously communicated annualized savings range of $50 to $60 million and a project cost range of $90 to $100 million. (A reconciliation of the “as reported” results to “normalized” results is included below.) Additionally, the implementation of SAP in Europe, previously expected to be substantially complete by the end of 2011, is now estimated to be completed in the first half of 2012.

Operating cash flow is expected to exceed $550 million for the full year, including approximately $90 to $100 million in restructuring and restructuring related cash payments. The company plans to fund capital expenditures of approximately $180 to $200 million during the year.

A reconciliation of the 2011 earnings outlook is as follows:

 

		FY 2011
Diluted earnings per share		$	1.43 to $1.46
Restructuring and restructuring related costs, net of tax		$	0.22 to $0.26
“Normalized” EPS		$	1.67 to $1.70

Conference Call

The company’s fourth quarter 2010 earnings conference call is scheduled for today, January 27, 2011, at 10:00 am ET. To listen to the webcast, use the link provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The webcast will be available for replay for two weeks. A brief supporting slide presentation will be available prior to the call under Quarterly Earnings in the Investor Relations section on the company’s Web site.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

 

3 Glenlake Parkway | Atlanta, GA 30328 | Phone +1 (770) 418-7000 | www.newellrubbermaid.com | NYSE: NWL

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		> News Release

 

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2010 sales of approximately $5.8 billion and a strong portfolio of brands, including Rubbermaid^®, Sharpie^®, Graco^®, Calphalon^®, Irwin^®, Lenox^®, Levolor^®, Paper Mate^®, Dymo^®, Waterman^®, Parker^®, Goody^®, Technical Concepts^TM and Aprica^®.

This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.

Contacts:

 

Nancy O’Donnell Vice President, Investor Relations +1 (770) 418-7723		David Doolittle Vice President, Corporate Communications +1 (770) 418-7519

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/(loss), earnings per share, operating income or gross margin improvements or declines, Project Acceleration, the European Transformation Plan, the Capital Structure Optimization Plan, capital and other expenditures, cash flow, dividends, restructuring and restructuring related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, 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 global economic slowdown; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers’ strong bargaining power; 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; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to implement successfully information technology solutions throughout our organization; 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 or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations and those factors listed in the company’s latest quarterly report on Form 10-Q, and exhibit 99.1 thereto, filed with the Securities and Exchange Commission. 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.

 

3 Glenlake Parkway | Atlanta, GA 30328 | Phone +1 (770) 418-7000 | www.newellrubbermaid.com | NYSE: NWL

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Newell Rubbermaid Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in millions, except per share data)

Reconciliation of “As Reported” Results to “Normalized” Results

 

		Three Months Ended December 31,
		2010												2009												YOY % Change
		As Reported				Excluded Items (1)				Normalized				As Reported				Excluded Items (2)				Normalized
Net sales		$	1,469.3			$	—			$	1,469.3			$	1,420.4			$	—			$	1,420.4				3.4	%
Cost of products sold			924.6				—				924.6				894.6				—				894.6
GROSS MARGIN			544.7				—				544.7				525.8				—				525.8				3.6	%
% of sales			37.1	%							37.1	%			37.0	%							37.0	%
Selling, general & administrative expenses			398.8				(6.7	)			392.1				383.5				—				383.5				2.2	%
% of sales			27.1	%							26.7	%			27.0	%							27.0	%
Restructuring costs			24.1				(24.1	)			—				13.0				(13.0	)			—
OPERATING INCOME			121.8				30.8				152.6				129.3				13.0				142.3				7.2	%
% of sales			8.3	%							10.4	%			9.1	%							10.0	%
Nonoperating expenses:
Interest expense, net			22.9				—				22.9				33.4				—				33.4
Other expense, net			2.3				—				2.3				4.2				(2.3	)			1.9
			25.2				—				25.2				37.6				(2.3	)			35.3				(28.6	)%
INCOME BEFORE INCOME TAXES			96.6				30.8				127.4				91.7				15.3				107.0				19.1	%
% of sales			6.6	%							8.7	%			6.5	%							7.5	%
Income taxes			20.9				6.1				27.0				31.1				0.2				31.3				(13.7	)%
Effective rate			21.6	%							21.2	%			33.9	%							29.3	%
NET INCOME (3)		$	75.7			$	24.7			$	100.4			$	60.6			$	15.1			$	75.7				32.6	%
% of sales			5.2	%							6.8	%			4.3	%							5.3	%
EARNINGS PER SHARE:
Basic		$	0.26			$	0.08			$	0.34			$	0.22			$	0.05			$	0.27
Diluted		$	0.25			$	0.09			$	0.34			$	0.20			$	0.07			$	0.27
AVERAGE SHARES OUTSTANDING:
Basic			293.5								293.5				280.9								280.9
Diluted			297.6								297.6				308.3								282.7

 

(1)

Items excluded from “normalized” results for 2010 consist of $6.7 million of restructuring related costs incurred in connection with the European Transformation Plan, net of tax effects, as well as the net of tax impact of $24.1 million of Project Acceleration restructuring costs, including asset impairment charges and employee termination and other costs.

 

(2)

Items excluded from “normalized” results for 2009 consist of $13.0 million of restructuring costs, including asset impairment charges and employee termination and other costs, and the associated tax effects, the net of tax impact of a $2.3 million loss relating to the Company’s decision to adopt the parallel rate to translate the results of its Venezuelan operations beginning in the fourth quarter of 2009, as well as the dilutive impact of the conversion feature of the convertible notes issued in March 2009 and the associated hedge transactions.

 

(3)	Net income attributable to noncontrolling interests was not material in either of the periods presented.

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Newell Rubbermaid Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in millions, except per share data)

Reconciliation of “As Reported” Results to “Normalized” Results

 

		Twelve Months Ended December 31,
		2010												2009												YOY % Change
		As Reported				Excluded Items (1)				Normalized				As Reported				Excluded Items (2)				Normalized
Net sales		$	5,759.2			$	—			$	5,759.2			$	5,577.6			$	—			$	5,577.6				3.3	%
Cost of products sold			3,588.4				—				3,588.4				3,528.1				—				3,528.1
GROSS MARGIN			2,170.8				—				2,170.8				2,049.5				—				2,049.5				5.9	%
% of sales			37.7	%							37.7	%			36.7	%							36.7	%
Selling, general & administrative expenses			1,463.4				(15.2	)			1,448.2				1,374.6				—				1,374.6				5.4	%
% of sales			25.4	%							25.1	%			24.6	%							24.6	%
Restructuring costs			77.5				(77.5	)			—				100.0				(100.0	)			—
OPERATING INCOME			629.9				92.7				722.6				574.9				100.0				674.9				7.1	%
% of sales			10.9	%							12.5	%			10.3	%							12.1	%
Nonoperating expenses:
Interest expense, net			118.4				—				118.4				140.0				—				140.0
Losses related to extinguishments of debt			218.6				(218.6	)			—				4.7				(4.7	)			—
Other (income) expense, net			(7.4	)			5.6				(1.8	)			2.0				(2.3	)			(0.3	)
			329.6				(213.0	)			116.6				146.7				(7.0	)			139.7				(16.5	)%
INCOME BEFORE INCOME TAXES			300.3				305.7				606.0				428.2				107.0				535.2				13.2	%
% of sales			5.2	%							10.5	%			7.7	%							9.6	%
Income taxes			7.5				162.1				169.6				142.7				23.2				165.9				2.2	%
Effective rate			NM								28.0	%			33.3	%							31.0	%
NET INCOME (3)		$	292.8			$	143.6			$	436.4			$	285.5			$	83.8			$	369.3				18.2	%
% of sales			5.1	%							7.6	%			5.1	%							6.6	%
EARNINGS PER SHARE:
Basic		$	1.04			$	0.49			$	1.53			$	1.02			$	0.30			$	1.32
Diluted		$	0.96			$	0.56			$	1.52			$	0.97			$	0.34			$	1.31
AVERAGE SHARES OUTSTANDING:
Basic			282.4								284.4				280.8								280.8
Diluted			305.4								287.3				294.4								281.9

 

(1)

Items excluded from “normalized” results for 2010 consist of $15.2 million of restructuring related costs incurred in connection with the European Transformation Plan, net of tax effects, $77.5 million of Project Acceleration restructuring costs, including asset impairment charges and employee termination and other costs, net of tax effects, the net of tax impact of $218.6 million in charges incurred to retire outstanding debt under the Capital Structure Optimization Plan, the net of tax impact of a $5.6 million gain resulting from hyperinflationary accounting for the Company’s Venezuelan operations, $63.6 million of non-recurring income tax benefits resulting from settlements with tax authorities, share impacts relating to the execution of the Capital Structure Optimization Plan and the dilutive impact of the conversion feature of the convertible notes and the associated hedge transactions for the period outstanding during 2010.

 

(2)

Items excluded from “normalized” results for 2009 consist of $100.0 million of restructuring costs, including asset impairment charges and employee termination and other costs, and the associated tax effects, $4.7 million of debt extinguishment charges, net of tax effects, the net of tax impact of a $2.3 million loss relating to the Company’s decision to adopt the parallel rate to translate the results of its Venezuelan operations beginning in the fourth quarter of 2009, as well as the dilutive impact of the conversion feature of the convertible notes issued in March 2009 and the associated hedge transactions.

 

(3)	Net income attributable to noncontrolling interests was not material in either of the periods presented.

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Newell Rubbermaid Inc.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions)

 

		December 31,				December 31,
		2010				2009
Assets:
Cash and cash equivalents		$	139.6			$	278.3
Accounts receivable, net			997.9				894.1
Inventories, net			701.6				688.2
Deferred income taxes			179.2				183.8
Prepaid expenses and other			113.7				137.7
Total Current Assets			2,132.0				2,182.1
Property, plant and equipment, net			529.3				578.1
Goodwill			2,749.5				2,754.3
Other intangible assets, net			648.3				646.2
Other assets			346.2				263.2
Total Assets		$	6,405.3			$	6,423.9
Liabilities and Stockholders’ Equity:
Accounts payable		$	472.5			$	433.6
Accrued compensation			190.2				176.4
Other accrued liabilities			698.2				656.0
Short-term debt			135.0				0.6
Current portion of long-term debt			170.0				492.9
Total Current Liabilities			1,665.9				1,759.5
Long-term debt			2,063.9				2,015.3
Other noncurrent liabilities			770.0				866.9
Stockholders’ Equity—Parent			1,902.0				1,778.7
Stockholders’ Equity—Noncontrolling Interests			3.5				3.5
Total Stockholders’ Equity			1,905.5				1,782.2
Total Liabilities and Stockholders’ Equity		$	6,405.3			$	6,423.9

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Newell Rubbermaid Inc.

CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

(in millions)

 

		Twelve Months Ended December 31,
		2010				2009
Operating Activities:
Net income		$	292.8			$	285.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			172.3				175.1
Losses related to extinguishments of debt			218.6				4.7
Deferred income taxes			(6.1	)			14.9
Non-cash restructuring costs			6.3				32.4
Stock-based compensation expense			36.5				35.1
Other			21.9				16.4
Changes in operating assets and liabilities:
Accounts receivable			(103.6	)			98.0
Inventories			(14.5	)			243.1
Accounts payable			39.1				(103.6	)
Accrued liabilities and other			(80.7	)			(198.8	)
Net cash provided by operating activities		$	582.6			$	602.8
Investing Activities:
Acquisition related activity		$	(1.5	)		$	(13.7	)
Capital expenditures			(164.7	)			(153.3	)
Proceeds from sales of noncurrent assets			16.8				17.6
Other			(4.0	)			—
Net cash used in investing activities		$	(153.4	)		$	(149.4	)
Financing Activities:
Proceeds from issuance of debt, net of debt issuance costs		$	547.3			$	634.8
Net proceeds from short-term borrowings			133.6				192.5
Proceeds from issuance of warrants			—				32.7
Purchase of call options			—				(69.0	)
Payments for settlement of warrants			(298.4	)			—
Proceeds from settlement of call options			369.5				—
Payments on and for the settlement of notes payable and debt			(710.8	)			(1,113.0	)
Cash consideration paid in convertible note exchange			(53.0	)			—
Repurchase of common stock			(500.1	)			—
Cash dividends			(55.4	)			(71.4	)
Purchase of noncontrolling interests in consolidated subsidiaries			—				(29.2	)
Other, net			(4.6	)			(4.4	)
Net cash used in financing activities		$	(571.9	)		$	(427.0	)
Currency rate effect on cash and cash equivalents		$	4.0			$	(23.5	)
(Decrease) increase in cash and cash equivalents		$	(138.7	)		$	2.9
Cash and cash equivalents at beginning of year			278.3				275.4
Cash and cash equivalents at end of year		$	139.6			$	278.3

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Newell Rubbermaid Inc.

Financial Worksheet

(In Millions)

 

		2010																				2009																				Year-over-year changes
						Reconciliation (1)																				Reconciliation (1)																Net Sales								Normalized OI
		Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin				Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin
																																										$				%				$				%
Q1:
Home & Family		$	556.9			$	68.8			$	—			$	68.8				12.4	%		$	557.7			$	60.3			$	—			$	60.3				10.8	%		$	(0.8	)			(0.1	)%		$	8.5				14.1	%
Office Products			351.6				47.3				—				47.3				13.5	%			318.2				31.1				—				31.1				9.8	%			33.4				10.5	%			16.2				52.1	%
Tools, Hardware & Commercial Products			397.9				51.6				—				51.6				13.0	%			328.0				38.0				—				38.0				11.6	%			69.9				21.3	%			13.6				35.8	%
Restructuring Costs			—				(16.0	)			16.0				—								—				(30.5	)			30.5				—
Corporate			—				(21.6	)			—				(21.6	)							—				(18.1	)			—				(18.1	)															(3.5	)			(19.3	)%
Total		$	1,306.4			$	130.1			$	16.0			$	146.1				11.2	%		$	1,203.9			$	80.8			$	30.5			$	111.3				9.2	%		$	102.5				8.5	%		$	34.8				31.3	%
		2010																				2009																				Year-over-year changes
						Reconciliation (2)																				Reconciliation (1)																Net Sales								Normalized OI
		Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin				Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin
																																										$				%				$				%
Q2:
Home & Family		$	592.0			$	75.6			$	—			$	75.6				12.8	%		$	617.2			$	80.4			$	—			$	80.4				13.0	%		$	(25.2	)			(4.1	)%		$	(4.8	)			(6.0	)%
Office Products			483.5				99.4				—				99.4				20.6	%			496.9				99.2				—				99.2				20.0	%			(13.4	)			(2.7	)%			0.2				0.2	%
Tools, Hardware & Commercial Products			420.7				70.1				—				70.1				16.7	%			390.2				67.6				—				67.6				17.3	%			30.5				7.8	%			2.5				3.7	%
Restructuring Costs			—				(21.2	)			21.2				—								—				(29.5	)			29.5				—
Corporate			—				(20.4	)			1.6				(18.8	)							—				(18.2	)			—				(18.2	)															(0.6	)			(3.3	)%
Total		$	1,496.2			$	203.5			$	22.8			$	226.3				15.1	%		$	1,504.3			$	199.5			$	29.5			$	229.0				15.2	%		$	(8.1	)			(0.5	)%		$	(2.7	)			(1.2	)%
		2010																				2009																				Year-over-year changes
						Reconciliation (2)																				Reconciliation (1)																Net Sales								Normalized OI
		Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin				Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin				$				%				$				%
Q3:
Home & Family		$	608.8				76.2			$	—			$	76.2				12.5	%		$	596.8			$	83.9			$	—			$	83.9				14.1	%		$	12.0				2.0	%		$	(7.7	)			(9.2	)%
Office Products			450.3				70.8				—				70.8				15.7	%			448.4				53.9				—				53.9				12.0	%			1.9				0.4	%			16.9				31.4	%
Tools, Hardware & Commercial Products			428.2				70.5				—				70.5				16.5	%			403.8				75.3				—				75.3				18.6	%			24.4				6.0	%			(4.8	)			(6.4	)%
Restructuring Costs			—				(16.2	)			16.2				—								—				(27.0	)			27.0				—
Corporate			—				(26.8	)			6.9				(19.9	)							—				(20.8	)			—				(20.8	)															0.9				4.3	%
Total		$	1,487.3			$	174.5			$	23.1			$	197.6				13.3	%		$	1,449.0			$	165.3			$	27.0			$	192.3				13.3	%		$	38.3				2.6	%		$	5.3				2.8	%
		2010																				2009																				Year-over-year changes
						Reconciliation (2)																				Reconciliation (1)																Net Sales								Normalized OI
		Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin				Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin				$				%				$				%
Q4:
Home & Family		$	620.7			$	61.2			$	—			$	61.2				9.9	%		$	605.5			$	50.1			$	—			$	50.1				8.3	%		$	15.2				2.5	%		$	11.1				22.2	%
Office Products			423.5				51.9				—				51.9				12.3	%			411.2				51.0				—				51.0				12.4	%			12.3				3.0	%			0.9				1.8	%
Tools, Hardware & Commercial Products			425.1				60.9				—				60.9				14.3	%			403.7				64.7				—				64.7				16.0	%			21.4				5.3	%			(3.8	)			(5.9	)%
Restructuring Costs							(24.1	)			24.1				—												(13.0	)			13.0				—
Corporate							(28.1	)			6.7				(21.4	)											(23.5	)			—				(23.5	)															2.1				8.9	%
Total		$	1,469.3			$	121.8			$	30.8			$	152.6				10.4	%		$	1,420.4			$	129.3			$	13.0			$	142.3				10.0	%		$	48.9				3.4	%		$	10.3				7.2	%
		2010																				2009																				Year-over-year changes
						Reconciliation (2)																				Reconciliation (1)																Net Sales								Normalized OI
		Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin				Net Sales				Reported OI				Excluded Items				Normalized OI				Operating Margin
																																										$				%				$				%
YTD:
Home & Family		$	2,378.4			$	281.8			$	—			$	281.8				11.8	%		$	2,377.2			$	274.7			$	—			$	274.7				11.6	%		$	1.2				0.1	%		$	7.1				2.6	%
Office Products			1,708.9				269.4				—				269.4				15.8	%			1,674.7				235.2				—				235.2				14.0	%			34.2				2.0	%			34.2				14.5	%
Tools, Hardware & Commercial Products			1,671.9				253.1				—				253.1				15.1	%			1,525.7				245.6				—				245.6				16.1	%			146.2				9.6	%			7.5				3.1	%
Restructuring Costs			—				(77.5	)			77.5				—								—				(100.0	)			100.0				—
Corporate			—				(96.9	)			15.2				(81.7	)							—				(80.6	)			—				(80.6	)															(1.1	)			(1.4	)%
Total		$	5,759.2			$	629.9			$	92.7			$	722.6				12.5	%		$	5,577.6			$	574.9			$	100.0			$	674.9				12.1	%		$	181.6				3.3	%		$	47.7				7.1	%

 

(1)	Excluded items are related to Project Acceleration costs.

(2)	Excluded items are related to Project Acceleration costs and restructuring related costs incurred in connection with the European Transformation Plan.

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Newell Rubbermaid Inc.

Calculation of Free Cash Flow (1)

 

		Three Months Ended December 31,
		2010				2009
Free Cash Flow (in millions):
Net cash provided by operating activities		$	204.7			$	187.1
Capital expenditures			(56.6	)			(45.6	)
Free Cash Flow		$	148.1			$	141.5
		Twelve Months Ended December 31,
		2010				2009
Free Cash Flow (in millions):
Net cash provided by operating activities		$	582.6			$	602.8
Capital expenditures			(164.7	)			(153.3	)
Free Cash Flow		$	417.9			$	449.5

 

(1)	Free Cash Flow is defined as cash flow provided by operating activities less capital expenditures.

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Newell Rubbermaid Inc.

Three Months Ended December 31, 2010

In Millions

Currency Analysis

 

		2010												2009				Year-Over-Year Increase (Decrease)
		Sales as Reported				Currency Impact				Adjusted Sales				Sales as Reported				Excluding Currency				Including Currency				Currency Impact
By Segment
Home & Family		$	620.7			$	(2.2	)		$	618.5			$	605.5				2.1	%			2.5	%			0.4	%
Office Products			423.5				11.6				435.1				411.2				5.8	%			3.0	%			(2.8	)%
Tools, Hardware & Commercial Products			425.1				0.3				425.4				403.7				5.4	%			5.3	%			(0.1	)%
Total Company		$	1,469.3			$	9.7			$	1,479.0			$	1,420.4				4.1	%			3.4	%			(0.7	)%
By Geography
United States		$	980.0			$	—			$	980.0			$	939.7				4.3	%			4.3	%			0.0	%
Canada			97.2				(4.6	)			92.6				87.7				5.6	%			10.8	%			5.2	%
Total North America			1,077.2				(4.6	)			1,072.6				1,027.4				4.4	%			4.8	%			0.4	%
Europe, Middle East and Africa			205.9				14.8				220.7				230.3				(4.2	)%			(10.6	)%			(6.4	)%
Latin America			76.7				6.2				82.9				73.5				12.8	%			4.4	%			(8.4	)%
Asia Pacific			109.5				(6.7	)			102.8				89.2				15.2	%			22.8	%			7.5	%
Total International			392.1				14.3				406.4				393.0				3.4	%			(0.2	)%			(3.6	)%
Total Company		$	1,469.3			$	9.7			$	1,479.0			$	1,420.4				4.1	%			3.4	%			(0.7	)%

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Newell Rubbermaid Inc.

Twelve Months Ended December 31, 2010

In Millions

Currency Analysis

 

		2010												2009				Year-Over-Year (Decrease) Increase
		Sales as Reported				Currency Impact				Adjusted Sales				Sales as Reported				Excluding Currency				Including Currency				Currency Impact
By Segment
Home & Family		$	2,378.4			$	(20.9	)		$	2,357.5			$	2,377.2				(0.8	)%			0.1	%			0.9	%
Office Products			1,708.9				40.3				1,749.2				1,674.7				4.4	%			2.0	%			(2.4	)%
Tools, Hardware & Commercial Products			1,671.9				(21.5	)			1,650.4				1,525.7				8.2	%			9.6	%			1.4	%
Total Company		$	5,759.2			$	(2.1	)		$	5,757.1			$	5,577.6				3.2	%			3.3	%			0.0	%
By Geography
United States		$	3,949.9			$	—			$	3,949.9			$	3,881.4				1.8	%			1.8	%			0.0	%
Canada			362.3				(33.3	)			329.0				326.5				0.8	%			11.0	%			10.2	%
Total North America			4,312.2				(33.3	)			4,278.9				4,207.9				1.7	%			2.5	%			0.8	%
Europe, Middle East, and Africa			803.5				28.2				831.7				795.1				4.6	%			1.1	%			(3.5	)%
Latin America			269.8				29.9				299.7				262.9				14.0	%			2.6	%			(11.4	)%
Asia Pacific			373.7				(26.9	)			346.8				311.7				11.3	%			19.9	%			8.6	%
Total International			1,447.0				31.2				1,478.2				1,369.7				7.9	%			5.6	%			(2.3	)%
Total Company		$	5,759.2			$	(2.1	)		$	5,757.1			$	5,577.6				3.2	%			3.3	%			0.0	%

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Newell Rubbermaid Inc.

Impact of Capital Structure Optimization Plan

For the Twelve Months Ended December 31, 2010

(In Millions, except EPS amounts)

 

		Twelve Months Ended December 31, 2010
		Dollars				Shares				EPS
Loss related to early extinguishment of $279 million principal amount of 10.6% notes due 2019, net of tax		$	82.8							$	0.27
Loss related to early extinguishment of $325 million principal amount of 5.50% Convertible Notes, net of tax			54.9							$	0.18
Normalize third quarter weighted average share count to remove beneficial impact of purchase of 25,806,452 shares in August 2010 under the Accelerated Share Buyback							3.5			$	(0.02	)
Normalize third quarter weighted average share count to remove adverse impact of issuance of 37,728,415 shares in September 2010 in the Convertible Notes exchange							(1.5	)		$	0.01
Total impact of the Capital Structure Optimization Plan excluded from Normalized Earnings and Earnings per Share		$	137.7				2.0			$	0.44

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