On Oct. 26, housewares producer extraordinaireNewell Rubbermaid (NYSE:NWL) released Q3 2006 earnings for the three-month period ended Sept. 30, 2006.
- Improved gross margins were squandered further down the income statement. The ongoing restructuring program, dubbed Project Acceleration, clearly hasn't yet done much to improve operations.
- Rubbermaid has a heavily leveraged balance sheet and deteriorating cash flows. That's not a comforting combination.
- The company is paying back its long-term debt, however, which will ameliorate that last concern over time.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$1,550 |
$1,586.1 |
$1,436.6 |
10.4% |
|
Net Profit* |
-- |
$128.4 |
$116.5 |
10.2% |
|
EPS* |
$0.39 |
$0.46 |
$0.42 |
7.1% |
|
Diluted Shares |
283.9 |
275.0 |
3.2% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
33.74% |
32.19% |
1.55 |
|
Operating Margin |
12.63% |
12.17% |
0.46 |
|
Net Margin |
8.10% |
8.11% |
(0.01) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$137.4 |
$485.5 |
(71.7%) |
|
Accounts Rec. |
$1,079.5 |
$958.0 |
12.7% |
|
Inventory |
$946.0 |
$876.4 |
7.9% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$605.4 |
$484.9 |
24.9% |
|
Long-Term Debt |
$2,028.8 |
$2,377.2 |
(14.7%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$312.2 |
$359.4 |
(13.1%) |
|
Capital Expenditures |
$36.9 |
$23.9 |
54.4% |
|
Free Cash Flow |
$275.3 |
$335.5 |
(17.9%) |
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Related Companies:
- Jarden (NYSE:JAH)
- Avery Dennison (NYSE:AVY)
- Tupperware Brands (NYSE:TUP)
Related Foolishness:
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At the time of publication, Anders Bylund had no position in any stock mentioned. Fool rules are here .
