Newell’s 2nd try may complete the job

Article Excerpt

NEWELL RUBBERMAID INC. $26 (New York symbol NWL; WSSF Rating: Average) took its current form in 1999 when the company acquired Rubbermaid Inc. That turned Newell into one of the world’s biggest makers of household products, such as storage containers, cleaning equipment and tools. It also makes children’s toys and office supply products. Newell sells its products through thousands of retailers, but Wal-Mart accounts for 14% of its total revenue. After the merger, the company began a sweeping restructuring that closed many of its plants and streamlined its remaining operations. The success of this plan lifted the stock to $37 in 2002. However, rising costs for plastics and steel hindered its earnings growth, and Newell’s stock fell to $19 in 2004. It has moved mostly sideways since, but we feel it’s set to rise again. Second big restructuring in five years In 2005, Newell launched a new restructuring that aims to save it $120 million a year. Under this new plan, Newell will…

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