Newell Brands reported second-quarter net sales were $2.7 billion, a 28.3% increase versus a prior year-period disrupted by the COVID-19 pandemic.
Newell’s core sales grew 25.4% over the prior year period with each of its business unit and major regions increasing year-over-year core sales.
The company reported net income of $197 million, or $0.46 diluted earnings per share, compared with net income of $78 million, or $0.18 diluted earnings per share, in the prior-year period.
Normalized net income year over year was $239 million, or $0.56 normalized diluted earnings per share, compared with $127 million, or $0.30 normalized diluted earnings per share.
Reported operating income for the second quarter came in at $305 million compared with reported operating income of $163 million in the year-earlier period.
Newell’s Home Appliances segment generated net sales of $394 million compared with $330 million in the prior-year period, reflecting core sales growth of 15.3% and the impact of favorable foreign exchange. Reported operating income from the Home Appliances unit was $13 million (3.3% of sales) compared with reported operating income of $6 million, or 1.8 percent of sales, in the prior year period.
The Home Solutions segment registered net sales of $525 million versus $384 million in the same period last year. This reflects core sales growth of 33.7% and the impact of favorable foreign exchange; net sales exceeded the 2019 level. Core sales increased in the Food and Home Fragrance business units. Reported operating income from the Home Solutions group was $53 million (10.1% of sales) against reported operating income of $29 million (7.6%) of sales, in the prior year period.
“Top line growth of 28% was broad based, with strong growth across every business unit and geographic region,” said Ravi Saligram, Newell Brands president and CEO. “We are pleased with the significant progress we have achieved on our strategic and financial agenda and we believe there is significant opportunity ahead of us for further value creation.”
Newell raised its 2021 full year net sales outlook to $10.1 billion to $10.35 billion from its previous range of $9.9 billion to $10.1 billion.
Chris Peterson, CFO and president, business operations,said, “We are updating our full year 2021 outlook to account for stronger than expected demand, higher productivity savings, as well as an unprecedented escalation in inflation. We now expect core sales to increase 7 to 10% in 2021.”
