Newell Rubbermaid (NYSE:NWL) is expected to report Q2 earnings before market open Thursday, July 31, with a conference call scheduled for 9:00 am ET.
Analysts are looking for a profit of 48c on revenue of $1.81B. The consensus range is 47c to 50c for EPS, and revenue of $1.79B to $1.82B, according to First Call. The company recently forecast Q2 EPS 47c to 50c and FY08 EPS $1.40 to $1.60 vs. First Call consensus of $1.55; in April, the company forecast FY08 EPS $1.80 to $1.90.
Along with the lower projection for earnings, CEO Mark Ketchum said the company will lay off workers, cut some of its basic home and office products and raise prices on certain items by up to 22%. Due to the increasing cost of plastic ingredients, Newell Rubbermaid said it would divest, downsize or leave categories that account for up to $500M in sales, while prices for products such as janitorial items and stackable food containers are likely to rise.
Moody's Investors Service said it downgraded the outlook on the consumer and commercial products manufacturer to negative from stable and affirmed its senior unsecured long term debt rating at Baa2, reflecting a downward revision in 2008 guidance and continued raw materials price pressure. However, Moody's said that the company's ratings continue to benefit from a broad, diverse product line and retailer diversity.
Shares of Newell Rubbermaid have fallen nearly 40% this year due to the weak U.S. dollar and its effort to control rising expenses for raw materials and fuel.