Newell Brands to Reaffirm Fiscal Year 2016 Outlook at Deutsche Bank Global Consumer Conference

ATLANTA–(BUSINESS WIRE)–Newell Brands Inc. (NYSE: NWL) announced it will reaffirm its fiscal
year 2016 outlook, as provided in its first quarter 2016 earnings press
release dated April 29, 2016, during its presentation tomorrow at the
Deutsche Bank Global Consumer Conference in Paris, France.

The company is reaffirming its full year 2016 guidance as follows:

       

Year Ending
December
31, 2016

Newell Brands core sales growth   3.0% to   4.0%
 
Normalized earnings per share

 

$2.75

to

 

$2.90

The company’s core sales growth guidance assumes legacy Newell
Rubbermaid core sales growth of 4 to 5 percent and legacy Jarden core
sales growth of 2 to 4 percent, which includes the negative impact of
planned product line exits. Jarden core sales growth of 2 to 4 percent
is roughly in line with Jarden’s pre-transaction long term “organic
growth” target of 3 to 5 percent. Newell Brands expects to exit product
lines with annual sales of $250 million to $300 million across both
legacy businesses over the next two to three years.

Chief Executive Officer Michael Polk will present tomorrow, June 16,
2016, at 8:45 a.m. EDT (2:45 p.m. CEST). The presentation will be
webcast live and may be accessed through Events & Presentations in the
Investor Relations section of the Newell Brands website at www.newellbrands.com.
The webcast will be archived and available for replay following the live
presentation.

About Newell Brands

Newell Brands (NYSE: NWL) is a leading global consumer goods company
with a strong portfolio of well-known brands, including Paper Mate®,
Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®, Jostens®, Marmot®,
Rawlings®, Irwin®, Lenox®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®,
Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®,
Rubbermaid®, Contigo®, First Alert®, Waddington and Yankee Candle®.
Driven by a sharp focus on the consumer, leading investment in
innovation and brands, and a performance-driven culture, Newell Brands
helps consumers achieve more where they live, learn, work and play.

This press release and additional information about Newell Brands are
available on the company’s website, www.newellbrands.com.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of
Regulation G promulgated by the Securities and Exchange Commission and
includes a reconciliation of these non-GAAP financial measures to the
most directly comparable financial measures calculated in accordance
with GAAP.

The company uses certain non-GAAP financial measures that are included
in this press release and the additional financial information both in
explaining its results to stockholders and the investment community and
in its internal evaluation and management of its businesses. The
company’s management believes that these non-GAAP financial measures and
the information they provide are useful to investors since these
measures (a) permit investors to view the company’s performance using
the same tools that management uses to evaluate the company’s past
performance, reportable business segments and prospects for future
performance and (b) determine certain elements of management’s incentive
compensation.

The company’s management believes that core sales provides a more
complete understanding of underlying sales trends by providing sales on
a consistent basis as it excludes the impacts of acquisitions (other
than the Jarden acquisition, which will be included in core sales on a
pro forma basis starting in the second quarter of 2016), planned or
completed divestitures, the deconsolidation of the company’s Venezuelan
operations and changes in foreign currency from year-over-year
comparisons. The effect of foreign currency on reported sales is
determined by applying a fixed exchange rate, calculated as the 12-month
average in the prior year, to the current and prior year local currency
sales amounts (excluding acquisitions and planned and completed
divestitures), with the difference in these two amounts being the
increase or decrease in core sales, and the difference between the
change in as reported sales and the change in constant currency sales
reported as the currency impact. The company’s management believes that
“normalized” earnings per share, which excludes restructuring and other
expenses and one-time and other events such as costs related to certain
product recalls, the extinguishment of debt, certain tax benefits and
charges, impairment charges, pension settlement charges, discontinued
operations, costs related to the acquisition, integration and financing
of acquired businesses, amortization of intangible assets associated
with acquisitions (beginning in the second quarter of 2016), advisory
costs for process transformation and optimization initiatives, costs of
personnel dedicated to integration activities and transformation
initiatives under Project Renewal and certain other items, is useful
because it provides investors with a meaningful perspective on the
current underlying performance of the company’s core ongoing operations.

The company determines the tax effect of the items excluded from
normalized diluted earnings per share by applying the estimated
effective rate for the applicable jurisdiction in which the pre-tax
items were incurred, and for which realization of the resulting tax
benefit, if any, is expected. In certain situations in which an item
excluded from normalized results impacts income tax expense, the company
uses a “with” and “without” approach to determine normalized income tax
expense.

While the company believes that these non-GAAP financial measures are
useful in evaluating the company’s performance, this information should
be considered as supplemental in nature and not as a substitute for or
superior to the related financial information prepared in accordance
with GAAP. Additionally, these non-GAAP financial measures may differ
from similar measures presented by other companies.

Reconciliation of Non-GAAP Financial Measures

Reconciliations of the 2016 core sales growth and normalized earnings
per share outlooks are as follows:

     

Year Ending December 31, 2016

Estimated net sales growth (GAAP) 122.0%     to     127.0%
Less: Jarden net sales growth included in pro forma base 115.0%     to     120.0%
Net sales growth, pro forma (1) 7.0% to 8.0%
Less: Currency (1.0%) to (2.0%)
Acquisitions, net of divestitures (2) 6.0% to 7.0%
Venezuela deconsolidation       (1.0%)      
Newell Brands core sales growth, pro forma (1) 3.0% to 4.0%

(1) Pro forma as if the Jarden transaction were completed April 15, 2015.

(2) Acquisitions, net of divestitures represents estimated sales of The
Waddington Group, Inc., Jostens, Inc. and Elmer’s Products, Inc. until
the one year anniversary of their respective dates of acquisition, net
of the impacts of the divestiture of the Rubbermaid medical cart
business in August 2015 and the planned divestiture of the Levolor and
Kirsch window coverings brands (“Décor”) in 2016.

     

Year Ending December 31, 2016

Diluted earnings per share $ 1.45     to     $ 1.60
Project Renewal and Project Lean restructuring and other costs $ 0.35 to $ 0.45
Integration costs to drive synergies $ 0.10 to $ 0.15
Estimated gain on sale of Décor $ (0.25) to $ (0.35)
Jarden transaction-related costs $ 0.20 to $ 0.30
Acquisition-related amortization* and inventory step-up $ 0.75     to     $ 0.95
Normalized earnings per share $ 2.75 to $ 2.90

* Represents amortization of acquisition-related intangibles beginning
in the second quarter of 2016.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical in nature
constitute forward-looking statements. These forward-looking statements
relate to information or assumptions about the effects of sales, income,
earnings per share, operating income, operating margin or gross margin
improvements or declines, Project Renewal, capital and other
expenditures, cash flow, dividends, restructuring and other project
costs, costs and cost savings, inflation or deflation, particularly with
respect to commodities such as oil and resin, debt ratings, changes in
exchange rates, expected benefits and financial results from the Jarden
transaction and other recently completed acquisitions and planned
divestitures and management’s plans, projections and objectives for
future operations and performance. These statements are accompanied by
words such as “anticipate,” “expect,” “project,” “will,” “believe,”
“estimate” and similar expressions. Actual results could differ
materially from those expressed or implied in the forward-looking
statements. Important factors that could cause actual results to differ
materially from those suggested by the forward-looking statements
include, but are not limited to, our dependence on the strength of
retail, commercial and industrial sectors of the economy in light of the
continuation or escalation of the global economic slowdown or regional
sovereign debt issues; currency fluctuations; competition with other
manufacturers and distributors of consumer products; major retailers’
strong bargaining power and consolidation of our retail customers;
changes in the prices of raw materials and sourced products and our
ability to obtain raw materials and sourced products in a timely manner
from suppliers; our ability to develop innovative new products and to
develop, maintain and strengthen our end-user brands, including the
ability to realize anticipated benefits of increased advertising and
promotion spend; product liability, product recalls or regulatory
actions; our ability to expeditiously close facilities and move
operations while managing foreign regulations and other impediments; a
failure of one of our key information technology systems or related
controls; our ability to attract, retain and motivate key employees;
future events that could adversely affect the value of our assets and
require impairment charges; our ability to improve productivity and
streamline operations; changes to our credit ratings; significant
increases in the funding obligations related to our pension plans due to
declining asset values, declining interest rates or otherwise; the
imposition of tax liabilities greater than our provisions for such
matters; the risks inherent in our foreign operations, including
exchange controls and pricing restrictions; our ability to complete
planned divestitures; our ability to successfully integrate acquired
businesses, including the recently acquired Jarden business; our ability
to realize the expected benefits and financial results from our recently
acquired businesses and planned divestitures; the potential for the
substantial indebtedness incurred in connection with the Jarden
transaction to adversely impact our financial position, decrease our
business flexibility, increase our borrowing costs and negatively impact
our credit ratings, and those factors listed in our most recently filed
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission and exhibit 99.1 thereto. Changes in such assumptions or
factors could produce significantly different results. The information
contained in this news release is as of the date indicated. The company
assumes no obligation to update any forward-looking statements contained
in this news release as a result of new information or future events or
developments.

Contacts

Newell Brands
Investor Contact:
Nancy
O’Donnell
Vice President, Investor Relations
+1 770-418-7723
nancy.odonnell@newellco.com
or
Media
Contacts
:
Nicole Quinlan
Senior Manager, Global
Communications
+1 770-418-7251
nicole.quinlan@newellco.com
or
Liz
Cohen
Weber Shandwick
+1 212-445-8044
liz.cohen@webershandwick.com