EXHIBIT 99
NEWS RELEASE
--------------
NEWELL CO. REPORTS RECORD SALES AND EARNINGS
SALES AND EARNINGS UP 25% IN THE QUARTER
FREEPORT, IL, July 24, 1995 -- Newell announced today that sales
and earnings reached record highs for the second quarter and six
months ended June 30, 1995.
For the 1995 second quarter, net sales were a record $621.3
million, up 26% from $493.5 million achieved in the second quarter of
1994. Net income in the quarter increased 25% to $54.9 million from
$44.0 million and earnings per share were 35 cents, a 25% increase
from 28 cents achieved in the second quarter of 1994.
The increase in sales for the quarter is primarily attributable
to contributions from Eberhard Faber, Newell Europe, and the Del Mar
and LouverDrape operations of Levolor Home Fashions, all acquired in
1994. The increases in net income and earnings per share for the
quarter are primarily attributable to contributions from the 1994
acquisitions (net of interest expense) and a reduction in other
nonoperating expenses vs. 1994.
For the first six months, sales were up 26% to $1,177.9 million
from $937.0 million in 1994. Net income was $91.0 million, up 21%
from $75.5 million in 1994. Earnings per share were 58 cents, up 21%
from 48 cents in 1994.
The increase in sales for the first half is also attributable to
the acquisitions of Eberhard Faber, Newell Europe, and the Del Mar and
LouverDrape operations. The increases in net income and earnings per
share for the first half are primarily attributable to contributions
form the 1994 acquisitions (net of interest expense), improved
profitability at businesses owned for more than two years (core
businesses) and a reduction in other nonoperating expenses vs. 1994.
William P. Sovey, Newell's Vice Chairman and CEO, stated, "We're
very pleased that, thanks to contributions from acquisitions and a
very good effort on the part of our core businesses, we were able to
post strong results in a sluggish first half retail environment. As
the performance of our recent acquisitions improves and we generate
increased internal growth, we are confident that we can meet our
growth targets for the remainder of the year."
Newell manufactures and markets high-volume staple consumer
products which are sold through a variety of retail and wholesale
distribution channels. Product categories include housewares,
hardware, home furnishings, and office products.
NEWELL CO.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in millions except per share data)
Three Months Ended June 30, Six Months Ended June 30,
-------------------------------------- ------------------------------------------
1995 1994 % Change 1995 1994 % Change
------- ------- -------- ------- ------- --------
Net Sales $621.3 $493.5 25.9% $1,177.9 $937.0 25.7%
Cost of products sold 431.8 333.6 821.6 642.3
------- ------- --------- ---------
GROSS INCOME 189.5 159.9 18.5% 356.3 294.7 20.9%
% of sales 30.5% 32.4% 30.2% 31.5%
Selling, general &
administrative expense 88.4 74.8 181.8 151.8
------- ------- --------- ---------
OPERATING INCOME 101.1 85.1 18.8% 174.5 142.9 22.1%
% of sales 16.3% 17.2% 14.8% 15.3%
Nonoperating expenses:
Interest expense 12.4 6.3 24.2 11.8
Interest Income (0.6) (0.3) (0.9) (0.5)
Goodwill 4.3 3.5 9.1 7.1
Other (6.5) (1.0) (9.6) (4.6)
-------- -------- --------- ---------
9.6 8.5 22.8 13.8
-------- -------- --------- --------
INCOME BEFORE TAXES 91.5 76.6 19.5% 151.7 129.1 17.5%
% of sales 14.7% 15.5% 12.9% 13.8%
Income taxes 36.6 32.6 60.7 53.6
Effective rate 40.0% 42.6% 40.0% 41.5%
------- ------- --------- ---------
NET INCOME $54.9 $44.0 24.8% $91.0 $75.5 20.5%
% of sales 8.8% 8.9% 7.7% 8.1%
------- ------- --------- ---------
------- ------- --------- ---------
EARNINGS PER SHARE $0.35 $0.28 25.0% $0.58 $0.48 20.8%
======= ======= ========= =========
Average shares outstanding 158.0 157.8 0.1% 158.0 157.7 0.2%