Former #1 making all the right moves

Article Excerpt

NEWELL RUBBERMAID INC. $39 (New York symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 269.0 million; Market cap: $10.5 billion; Price-to-sales ratio: 1.9; Dividend yield: 1.9%; TSINetwork Rating: Average; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and many other household goods. Newell is up 30.0% since we made it our Stock of the Year for 2014 at $30 in our February 2014 issue. That’s mainly because of its successful multi-year cost-cutting plan, which included closing plants and merging distribution centres. Savings sent earnings soaring Following the recession, Newell’s sales rose 9.6%, from $5.2 billion in 2010 to $5.7 billion in 2014. As it realized more restructuring savings, earnings jumped 27.8%, from $436.4 million in 2010 to $557.8 million in 2014. Per-share profits gained 31.6%, from $1.52 to $2.00, on fewer shares outstanding. Newell is investing its improving earnings in acquisitions, particularly companies that can benefit from its manufacturing expertise and global distribution networks. In 2014,…

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