ORLANDO, Fla., Feb. 1, 2011 /PRNewswire/ -- (NYSE: TUP) Tupperware Brands Corporation today reported fourth quarter 2010 sales and profit.  Fourth quarter 2010 sales increased in local currency by 6% versus 2009, before a negative impact from foreign exchange rates of 1%.  This resulted in record reported sales that were 5% above the fourth quarter of 2009.  Additionally, total sales force reached a record high of over 2.6 million.

Rick Goings, Chairman and CEO commented, "We are pleased to have finished the year with another strong quarter of local currency sales growth, which was at the high end of the guidance given in October.  Our emerging markets comprised 55% of sales in the quarter, and delivered a 14% sales increase.  A significant number of emerging markets had double-digit sales increases, including Argentina, Brazil, India, Indonesia, Malaysia/Singapore, the Philippines, Tupperware South Africa, Turkey and Venezuela.  The established markets were down 3% in local currency, although Austria performed exceptionally well again this quarter with a 33% sales increase in local currency compared with 2009, and Tupperware United States and Canada had a 9% sales increase.  Tupperware Australia, Germany, Tupperware Japan and BeautiControl were the main units with decreases.  We will continue to focus on strengthening these businesses in 2011, and were pleased to end the year with continued improvement in trends in BeautiControl and Tupperware Japan."

Diluted GAAP earnings per share of $1.26 for the fourth quarter of 2010 was down 5 cents, or 4% versus last year.  The 2010 fourth quarter included net negative 12 cents from items impacting comparability*, while 2009 had net positive 9 cents from those items.  There was also a negative 2 cent impact versus 2009 from weaker foreign currencies.  

Adjusted diluted earnings per share of $1.38 in the quarter was 16 cents better than 2009, including the negative foreign currency impact of 2 cents.  The $1.38 of adjusted diluted earnings per share was 7 cents above the high end of the guidance range given by the Company in October, which included, versus the guidance, a 1 cent negative impact from foreign exchange.

"We had a strong close to 2010, with a 6% full year sales increase and record profit.  We grew our GAAP diluted earnings per share 28% and improved our full year pretax profit return on sales by 160 basis points, excluding items impacting comparability*.  These results show the strength of our diversified portfolio and our ability to achieve growth.  Our total sales force is at a record level, and we ended the year with an 8% advantage over 2009," said Rick Goings.

Tupperware Brands will conduct a conference call today, Tuesday, February 1, 2011, at 8:30 am Eastern time.  The conference call will be webcast along with a copy of this news release on www.tupperwarebrands.com.

Fourth Quarter Segment Highlights*

Tupperware Segments

Europe local currency sales were up slightly over prior year (down 4% reported).  The emerging markets were up 2% compared with last year, with two larger markets having substantial sales increases in the quarter, a 31% increase (up 41% reported) by Tupperware South Africa and a 39% increase (up 42% reported) by Turkey.  The largest offset was in CIS, where sales declined 29% (down 32% reported) versus last year, in part reflecting a continued softness in consumer spending and lower sales force activity.  Established markets were even with prior year in local currency (down 8% reported), with Austria achieving a 33% increase (up 23% reported).  Sales in Germany were down 5% (down 12% reported) compared with 2009, but the German business ended the year with a 4% larger sales force size versus last year.  Europe's pretax operating profit was down 3% in local currency (down 8% reported).  The segment's total sales force was up 10% versus year-end 2009.

In Asia Pacific, fourthquarter sales versus prior year were up 10% in local currency (up 17% reported).  Emerging markets were up 28% in local currency (up 35% reported).  All emerging markets again had sales increases, led by Indonesia with a 39% local currency sales increase (up 47% reported), with the other main contributors being India with a 60% local currency sales increase (up 65% reported) and Malaysia/Singapore with a 33% local currency sales increase (up 46% reported).  China was up by 6% in local currency sales (up 9% reported) in the quarter, but this reflected a negative 14 point impact on the year-over-year comparison from lower business-to-business sales.  The established markets were down 14% in local currency (down 7% reported), mainly in Tupperware Australia, which had a sales decline of 23% in local currency (down 17% reported), reflecting a smaller sales force.  Tupperware Japan continued to implement its intermediate term strategy to modify the business model, and had a high single-digit sales decrease in the fourth quarter.  Pretax profit for the segment was up 15% in local currency (up 22% reported).  The segment's total sales force was up 23% at the end of the year.

Tupperware North America sales were up 9% in local currency (up 11% reported) versus prior year.  Mexico had substantial growth in sales in the core business, although lower business-to-business sales brought the comparison to a 9% local currency sales increase (up 15% reported).  Tupperware United

States and Canada also had an 9% increase in the quarter, of which about half was from a promotional timing shift that put some sales in the fourth quarter of 2010 that were in the third quarter of 2009.  Fourth quarter pretax profit for the segment was down 1% in local currency (up 2% reported).  The total sales force size at the end of the year was up 9%.

Beauty Segments    

Beauty North America sales were up 1% in local currency (up 5% reported).  In the large Fuller Mexico business, improvement in recruiting led to a year-end sales force size 4% above last year, and local currency sales were up 4% compared with last year (up 10% reported).  BeautiControl experienced a 9% decrease, which was a sequential improvement from the double-digit decreases earlier in 2010, and the business continued to work on improving sales force activation.  The segment's pretax profit in the quarter increased 18% in local currency (up 26% reported), reflecting improved cost structures in both units.  The total sales force size at the end of the year was even with prior year.

Beauty Other sales were up 16% in local currency (up 6% reported), with over half of the increase from the business in Brazil where local currency sales increased by 39% (up 42% reported).  Also contributing to the increase were Argentina, the Philippines, and Venezuela.  Pretax profit increased $8.3 million in local currency, reflecting the absence of last year's $3.5 million expense recorded when the Company changed to using the parallel exchange rate in Venezuela as of the end of the year, and the contribution margin from the higher sales.  The total sales force size for the segment at the end of the year was up 1% versus last year.

Full Year 2010 Results

Full year company sales grew 6% in local currency (up 8% reported).  The Tupperware brand segments grew 7% in local currency (up 10% reported), and the Beauty brand segments were up 6% in local currency (up 5% reported).  Businesses operating in emerging markets, comprising 56% of total company sales, grew 15% in local currency (up 18% reported) and the businesses that operate in established markets were down 2%.  There were significant improvements in the emerging markets of Brazil, China, India, Indonesia, Malaysia/Singapore, Tupperware South Africa, Turkey and Venezuela and the established markets of Austria and France.  Profit from the operating segments rose 16% in local currency (up 19% reported), driven by double-digit percentage improvements in Asia Pacific and Tupperware North America and a $21.0 million local currency increase by Beauty Other that included the benefit of not having the $8.4 million of foreign exchange related costs incurred in Venezuela in 2009. Beauty North America's operating profit increased modestly, and Europe's operating profit was up slightly compared with last year.  Diluted earnings per share was $3.53, up 24% in local currency (up 28% reported).  Excluding certain adjustment items, diluted earnings per share was $3.72, up 17% in local currency (up 21% reported).

First Quarter 2011 Outlook*

The first quarter sales outlook is for an increase of 5 to 7% in local currency.  Based on current exchange rates, there is a 3 percentage point positive impact on the year-over-year sales comparison, so the outlook range in dollars is an increase of 8 to 10%.  Under the Company's 52/53 week fiscal year, 2011 will have 53 weeks, with the extra week falling in the first quarter.  GAAP diluted earnings per share is expected to be 78 to 83 cents, with a negative 3 cent impact from items impacting comparability.  Excluding these items, diluted earnings per share is forecast to be 81 to 86 cents.  This compares with GAAP diluted earnings per share of 73 cents in the first quarter of 2010 and 76 cents excluding certain items.  The guidance reflects a positive impact on the comparison of 2 cents from foreign currency, along with a higher income tax rate than 2010.

Full Year 2011 Outlook*

The initial outlook for full year sales growth is an increase of 6 to 8% in local currency, and with a 2% benefit from foreign exchange, is an increase of 8 to 10% reported.  The local currency increase range is in line with the Company's longer term guidance that was last raised in October 2008.  GAAP diluted earnings per share is forecast to be $4.09 to $4.19, with a net negative 14 cents from items impacting comparability.  Excluding these items, diluted earnings per share is forecast to be $4.23 to $4.33.  (See detail in the Non-GAAP Financial Measures Outlook Reconciliation schedule.)  This compares with 2010 diluted earnings per share of $3.72 excluding certain items, and includes a positive 11 cent impact versus 2010 from foreign currency rates.  This indicates a 14 to 16% increase in dollars in diluted earnings per share excluding items and an increase of 10 to 13% in local currency.  The full year outlook includes a 70 basis point improvement in pretax profit return on sales, excluding items impacting comparability, an increase in the tax rate of 140 basis points to 26% and between 2.0 to 2.5% less average diluted shares outstanding.

Uses of Cash

The Company's board has increased the share repurchase authorization by $250 million to $600 million. The Company is accelerating its share repurchases to use each year's proceeds from stock option exercises, along with cash available at the end of the prior year.  It currently considers available cash to be the amount in excess of $90 million, and consequently expects to repurchase $160 million worth of shares in 2011, plus the amount received as a result of option exercises.  Repurchases are expected to be made evenly through the year.

The Company expects its board to evaluate its dividend rate annually in the first quarter of each year, beginning in 2012, with increases likely about in line with profit increases as achieved.  

The Company does not intend to repay any of the $405 million of term loans currently outstanding while its credit agreement that runs until September 2012 remains in effect.  The interest rate under this agreement is extremely favorable.

Rick Goings, Chairman and CEO, commented, "Even with the strong improvements this year, we believe we still have room to grow our businesses, as indicated in our forecast for 6 to 8% local currency sales growth in 2011.  Our strong business model generates a high return on sales and free cash flow, which gives us the confidence to increase the cash going to shareholders through our share repurchase program that we've expanded and accelerated again today, and through our dividend payouts.  Being a global portfolio of direct selling companies has helped us to provide consistent top and bottom line growth, even in a challenging macroeconomic environment.  As we get deeper into 2011, we will continue to focus on the fundamentals that strengthen our business:  developing innovative and desirable products, creating selling situations that are fun and profitable, and promoting a compelling earnings opportunity for our salesforce.  We are also focused on executing the strategies that make direct selling businesses successful.  Together, these will continue to drive our top line and bottom line growth.  I have confidence that our management teams understand our formula for success and know how to grow."

* See Non-GAAP Financial Measures Reconciliation Schedules.  

Tupperware Brands Corporation is a portfolio of global direct selling companies, selling innovative, premium products across multiple brands and categories through an independent sales force of 2.6 million.  Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for

consumers through the Armand Dupree, Avroy Shlain, BeautiControl, Fuller Cosmetics, NaturCare, Nutrimetics, Nuvo and Swissgarde brands.

The Company's stock is listed on the New York Stock Exchange (NYSE: TUP). Statements contained in this release, which are not historical fact and use predictive words such as "outlook", "expects" or "target" are forward-looking statements.  These statements involve risks and uncertainties which include recruiting and activity of the Company's independent sales forces, the success of new product introductions and promotional programs, governmental approvals of materials for use in food containers, the success of buyers in obtaining financing or attracting tenants for commercial and residential developments, the effects of economic and political conditions generally and foreign exchange risk in particular and other risks detailed in the Company's most recent periodic report as filed in accordance with the Securities Exchange Act of 1934. 

The Company does not intend to update forward-looking information other than through its quarterly earnings releases unless it expects diluted earnings per share for the current quarter, excluding adjustment items and the impact of changes in foreign exchange rates, to be significantly below its previous guidance.

Non-GAAP Financial Measures

The Company has utilized non-GAAP financial measures in this release, which are provided to assist readers' understanding of the Company's results of operations. The adjustment items materially impact the comparability of the Company's results of operations. The adjusted information is intended to be indicative of Tupperware Brands' primary operations, and to assist readers in evaluating performance and analyzing trends across periods.

The non-GAAP financial measures exclude gains from the sale of property, plant and equipment and insurance settlements, and re-engineering costs.  Further, while the Company is engaged in a multi-year program to sell land adjacent to its Orlando, Florida headquarters, and also disposes of other excess land and facilities periodically, these activities are not part of the Company's primary business operations.  Additionally, gains recognized in any given period are not indicative of gains which may be recognized in any particular future period.   For this reason, these gains are excluded as indicated.  Further, the Company excludes significant charges related to casualty losses caused by significant weather events, fires or similar circumstances. It also excludes any related gains resulting from the settlement of associated insurance claims. While these types of events can and do recur periodically, they are excluded from indicated financial information due to their distinction from ongoing business operations, inherent volatility and impact on the comparability of earnings across quarters.  Also, the Company periodically records exit costs accounted for using the applicable accounting guidance for exit or disposal cost obligations and other amounts related to rationalizing manufacturing and other restructuring activities, and believes these amounts are similarly volatile and impact the comparability of earnings across quarters.  Therefore, they are also excluded from indicated financial information to provide what the Company believes represents a useful measure for analysis and predictive purposes.

The Company has also elected to present financial measures excluding the impact of amortizing the purchase accounting carrying value of certain definite-lived intangible assets, primarily the value of independent sales forces recorded in connection with the Company's December 2005 acquisition of the direct selling businesses of Sara Lee Corporation.  The amortization expense related to these assets will continue for several years; however, based on the Company's current estimates, this amortization will decline as the years progress.  Similarly, in connection with its evaluation of the carrying value of acquired intangible assets and goodwill, the Company has periodically recognized impairment charges.  The Company believes that these types of non-cash charges will not be representative in any single year of amounts recorded in prior years or expected to be recorded in future years.  Therefore, they are excluded from indicated financial information to also provide a useful measure for analysis and predictive purposes.

Included on the Company's website at http://ir.tupperwarebrands.com/history.cfm is information detailing the calculation of the Company's financial covenants for the most recent period, under its Credit Agreement dated September 28, 2007.  

CONTACT:  Nicole Decker, +1-407-826-4560