Insider Trader Watch: Newell Rubbermaid Inc.

Newell Rubbermaid Inc. (NYSE:NWL) insider has recently participated in insider trading activity. Director, DE SOLE DOMENICO bought 5,670 shares for $200,038 via one transaction Feb 16. Another notable insider trading was done by MONTGOMERY CYNTHIA ANN on Feb 11, who is the Director. The insider Sold 9,606 shares at an average price of $33.98. Moreover, an insider selling of 6,000 shares was carried out by STROBEL STEVEN J, Director, on Aug 10. Following the transaction, the insider now owns 44,425 shares in total. Director VIAULT RAYMOND G bought 5,000 shares for $200,275 through one transaction May 15. Following this sale, this insider’s stake in the company comprises 59,898 shares, priced at $2241982.14 as of Wednesday.

The stock has experienced a total of 10 insider trades in the past three months. These trades include 9 sell activities and 1 buy trades. Furthermore, over the past 12 months, the stock was traded 22 times by insiders. In 19 of these trades, the insider was a seller while an employee of the company was the buyer in just 3 instances.

Newell Rubbermaid Inc. (NWL) on January 29, 2016 announced that its fourth quarter 2015 financial results.

We have delivered another set of strong results for the fourth quarter. Core sales grew 6.2 percent, driven by strengthened innovation, increased brand support and excellent commercial execution, said Michael Polk, President and Chief Executive Officer. All five segments grew core sales, led by Writing growth of 12.5 percent, Baby growth of 10.2 percent, and Commercial Products growth of 5.8 percent. This strong performance, along with continued progress on margins, resulted in normalized earnings per share growth of over 14 percent. Our operating model is working and we enter 2016 with a clear line of sight to another year of strong core sales and earnings growth.

In December, we announced a definitive agreement to combine with Jarden Corporation, creating a $16 billion consumer goods company of leading brands that compete in large, growing and unconsolidated global markets. The combination will substantially scale our presence in key geographies, customers and channels, and is expected to deliver at least $500 million in cost synergies. The transaction is expected to be accretive to normalized earnings per share in year one, with strong double-digit accretion by year three. We are in the process of seeking the necessary regulatory approvals and securing permanent financing, and expect to complete the transaction in the second quarter.

Fourth Quarter 2015 Operating Results

Net sales in the fourth quarter were $1.56 billion compared with $1.53 billion in the prior year. Core sales grew 6.2 percent. Net sales growth includes a 150 basis point net contribution from acquisitions and planned/completed divestitures, and a negative 540 basis point impact from foreign currency.

Normalized gross margin expanded by 80 basis points to 38.5 percent, as benefits from productivity, pricing and favorable input costs more than offset the negative impacts of foreign currency.

Reported gross margin was 38.3 percent, a 70 basis point improvement versus prior year.

Normalized operating margin was 13.7 percent, a 30 basis point improvement compared with the prior year, despite a 70 basis point increase in advertising and promotion. Normalized operating income was $214.2 million compared with $204.6 million in the prior year period.