EXHIBIT 99.1
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PRESS RELEASE
NEWELL RUBBERMAID ANNOUNCES SALE OF THREE BUSINESSES
Company Divests Burnes Picture Frame, Anchor Glassware
and Mirro Cookware Businesses
ATLANTA, MARCH 15, 2004 - Newell Rubbermaid Inc. (NYSE: NWL) announced
today that it has entered into a definitive agreement to sell three
businesses (Burnes{R} Picture Frame, Anchor{R} Glass and Mirro{R}
Cookware) to Global Home Products, LLC, an affiliate of Cerberus
Capital Management L.P. This transaction is consistent with the
company's intention to divest nonstrategic businesses and concentrate
on leveraging brand strength and product innovation in its core
portfolio of businesses. Closing of the transaction is subject to
regulatory approval and certain other customary conditions.
In 2003, the three businesses contributed approximately $695 million
of sales in the Calphalon{R} Home Segment. Under the terms of the
agreement, the company will retain the accounts receivable of the
businesses and expects gross proceeds as a result of the transaction
to be approximately $310 million. Other terms of the agreement were
not disclosed.
Newell Rubbermaid CEO Joseph Galli said, "Divesting non-strategic
businesses is a priority for 2004, and we are pleased to report
significant progress against this initiative. Combined with our
other divestitures this year, we have now completed the bulk of our
portfolio transformation. While we still have more work to do, we are
moving carefully and quickly to transform Newell Rubbermaid into an
organization capable of consistent growth and profitability through a
core portfolio of businesses."
OUTLOOK
This transaction will be dilutive to earnings approximately $0.11 to
$0.13 cents. For 2004, the company continues to expect sales to
decline 1% - 3% and continuing diluted earnings per share to now be in
the range of $1.36 to $1.46. This range excludes restructuring charges
of $43 - $63 million ($0.11 - $0.16 per share) and other charges of
$10 - $20 million ($0.03 - $0.05 per share) primarily related to
product line exits and charges of $95 - $115 million ($0.31 - $0.39
per share) primarily for foreign currency translation adjustments
related to divestitures of non-core businesses.
For the first quarter 2004, the company continues to expect internal
sales to decline 1% - 3% and continuing diluted earnings per share to
be $0.16 - $0.20. This range excludes restructuring charges of $25 -
$35 million ($0.06 - $0.09 per share) and other charges of $5 - $10
million ($0.01 - $0.03 per share) primarily related to product line
exits and charges of $95 - $115 million ($0.31 - $0.39 per share)
primarily for foreign currency translation adjustments related to
divestitures of non-core businesses.
A reconciliation of the 2004 earnings outlook is as follows:
1st Quarter Full Year
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Diluted earnings per share
continuing operations ($0.27) - ($0.23) $0.81 - $0.91
Diluted earnings per share
discontinued operations ($0.02) ($0.02)
Excluding:
Restructuring charges $0.06 - $0.09 $0.11 - $0.16
Other charges--product line exits,
divestitures $0.32 - $0.42 $0.34 - $0.44
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Diluted earnings per share,
excluding charges $0.16 - $0.20 $1.36 - $1.46
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CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The statements contained in this press release that are not historical
in nature are forward-looking statements. Forward-looking statements
are not guarantees since there are inherent difficulties in predicting
future results, and actual results could differ materially from those
expressed or implied in the forward looking statements. For a list of
major factors that could cause actual results to differ materially
from those projected, refer to Newell Rubbermaid's third quarter 2003
Form 10-Q, Exhibit 99.1, filed with the Securities and Exchange
Commission.
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 the differences
between these non-GAAP financial measures with the most directly
comparable financial measures calculated in accordance with GAAP.
ABOUT NEWELL RUBBERMAID
Newell Rubbermaid Inc., is a global marketer of consumer products with
2003 sales of over $7 billion and a powerful brand family including
Sharpie{R}, Paper Mate{R}, Parker{R}, Waterman{R}, Colorific{R},
Rubbermaid{R}, Stain Shield{R}, Blue Ice{R}, TakeAlongs{R},
Roughneck{R}, Brute{R}, Calphalon{R}, Little Tikes{R}, Graco{R},
Levolor{R}, Kirsch{R}, Shur-Line{R}, BernzOmatic{R}, Goody{R}, Vise-
Grip{R}, Quick-Grip{R}, IRWIN{R}, Lenox{R}, and Marathon{R}. The
company, headquartered in Atlanta, Ga., employs approximately 40,000
people worldwide.
This press release and additional financial information about the
company are available under the Investor Relations section of the
company's website at www.newellrubbermaid.com.
Newell Rubbermaid Inc.
Atlanta, GA
Securities Listed
NYSE
Common Stock
(Symbol: NWL)
www.newellrubbermaid.com
Jesse Herron
Vice President, Investor Relations
6833 Stalter Drive
Rockford, IL 61108
Phone: 815-381-8150
Susan Masten
Director, Public Relations
6833 Stalter Drive
Rockford, IL 61108
Phone: 770-670-2215