EXHIBIT 99
NEWS RELEASE
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NEWELL CO. REPORTS RECORD FOURTH QUARTER RESULTS
1995 FULL YEAR SALES AND EARNINGS REACH AN ALL-TIME HIGH
1995 FULL YEAR RETURN ON EQUITY REACHES 20%
FREEPORT, IL, January 29, 1996 -- Newell announced today that
sales and earnings reached record levels for both the fourth quarter
and full year ended December 31, 1995.
For the 1995 fourth quarter, net sales were a record $669.2
million, up 14% from $584.7 million achieved in the fourth quarter of
1994. Net income for the fourth quarter of 1995 increased 7% to $66.1
million and earnings per share were 42 cents, an 8% increase from 39
cents achieved in the fourth quarter of 1994.
The increase in sales for the quarter is primarily attributable
to the incremental sales from the 1994 acquisition of Newell Europe
and the 1995 acquisitions, including Decorel and Berol. The increases
in net income and earnings per share are primarily attributable to the
contributions from the 1994 acquisition of Eberhard Faber and the 1995
acquisition of Decorel.
For the full year 1995, sales were up 20% to $2,498.4 million
from $2,074.9 million in 1994. Net income for the full year 1995 was
$222.5 million, an increase of 14% from $195.6 million in 1994 and
earnings per share were $1.41, up 14% from $1.24 in 1994.
The increase in sales for the full year 1995 is primarily
attributable to the incremental sales from the 1994 acquisitions of
Home Fashions, Inc., Eberhard Faber and Newell Europe and the 1995
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acquisitions, including Decorel and Berol. The increases in net
income and earnings per share are primarily attributable to
contributions from the 1994 acquisitions and improved profitability at
businesses owned more than two years.
"We're pleased that we were able to meet or exceed most of our
financial goals during a difficult period in the retail marketplace,"
stated William P. Sovey, Newell's Vice Chairman and CEO. "Credit for
this performance goes to the men and women of Newell, who
distinguished themselves and our entire company by their efforts
throughout the year. It was their outstanding contribution that
enabled us to turn in record results."
"We enter 1996 a truly global company, excited about our
opportunities at home and abroad," added Mr. Sovey. "The rest of the
decade offers us many opportunities and we intend to take advantage of
them so that we may continue to provide above average returns to our
stockholders."
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.
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NEWELL CO.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in millions except per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
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1995 1994 % Change 1995 1994 % Change
------------ ------------ ------------ ------------ ------------ ------------
Net Sales 669.2 584.7 14.5% $2,498.4 $2,074.9 20.4%
Cost of products sold 449.9 387.5 1,715.6 1,403.8
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GROSS INCOME 219.3 197.2 11.2% 782.8 671.1 16.6%
% of sales 32.8% 33.7% 31.3% 32.3%
Selling, general & 94.5 85.2 363.3 313.2
administrative expense
------------ ------------ ------------ ------------
OPERATING INCOME 124.8 112.0 11.4% 419.5 357.9 17.2%
% of sales 18.6% 19.2% 16.8% 17.2%
Nonoperating expenses:
Interest expense 13.0 10.5 49.8 30.0
Interest Income (0.7) (0.3) (1.9) (1.0)
Goodwill 5.4 4.5 19.3 15.4
Other (3.5) (6.2) (18.5) (15.8)
------------ ------------ ------------ ------------
14.2 8.5 48.7 28.6
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INCOME BEFORE TAXES 110.6 103.5 6.9% 370.8 329.8 12.6%
% of sales 16.5% 17.7% 14.8% 15.9%
Income taxes 44.2 41.4 148.3 133.7
Effective rate 40.0% 40.0% 40.0% 40.6%
------------ ------------ ------------ ------------
NET INCOME 66.4 62.1 6.9% $222.5 $195.6 13.8%
% of sales 9.9% 10.6% 8.9% 9.4%
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EARNINGS PER SHARE 0.42 0.39 7.7% $1.41 $1.24 13.7%
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Average shares outstanding 158.6 157.8 0.5% 158.2 157.8 0.3%
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