World Business

Newell Brands Q3 Sales Decline


Third quarter net sales at Newell Brands were down as company officials said several factors including a decline in core sales were to blame for the decrease.

For the three month period ended September 30, net sales were $2.3 billion, down from net sales of $2.5 billion in the comparable quarter the previous year. Newell officials said the decline was attributable to the impact of the adoption of the new 2018 revenue recognition standard, unfavorable foreign exchange and a 4% decline in core sales from continuing operations.

Reported operating loss was $7.9 billion compared with operating income of $141 million in the prior year, reflecting the impact of the impairment charge. Normalized operating income was $296 million compared with $319 million in the prior year.

The company reported a net loss of $7.1 billion compared with net income of $234 million in the prior year, with the decline primarily attributable to the total company impairment charge of $8.7 billion.

Included in the revenue decline is approximately $55 million in core sales at Toys ‘R Us, which did not repeat this year as the toy retailer is now out of business.

The Food & Appliances segment generated net sales of $722 million in the third quarter compared with $815 million in the prior year, reflecting the negative impacts of the new 2018 revenue recognition standard, foreign exchange and continuing challenges on appliances related to lost distribution at a key U.S. retailer. The company expects core sales trends to improve sequentially in the fourth quarter related to new product launches on appliances and cookware.

Reported operating loss was $3.3 billion compared with operating income of $105 million in the prior year, largely due to the impairment charge on intangible assets, company officials said.

The Home & Outdoor Living segment generated net sales of $727 million in the third quarter compared with $780 million in the prior year, reflecting the negative impacts of the new 2018 revenue recognition standard, unfavorable foreign exchange, continuing challenges for Yankee Candle in Europe and lost distribution for Coleman at a key U.S. retailer. These outcomes were partially offset by growth from connected home and security and the home fragrance U.S. wholesale business.

The company expects core sales trends to improve in the fourth quarter related to continued strong growth on connected home and security and improved performance on home fragrance driven by growth in the U.S. wholesale channel and stabilization in Europe.

Reported operating loss was $4.3 billion compared with operating income of $95.5 million in the prior year, reflecting the impairment charge on intangible assets.

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