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Rubbermaid 4Q improves
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February 9, 1999: 11:38 a.m. ET
Results show bounce from year ago but still come in 2 cents shy of expectations
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NEW YORK (CNNfn) - Rubbermaid reported fourth-quarter earnings Tuesday that were roughly in line with analysts' expectations thanks to a 7 percent jump in net sales and a 4.1 percent rise in earnings.
Before restructuring and one-time merger costs, Rubbermaid (RBD) posted net operating earnings of $33.1 million, or 22 cents per diluted share, for the period ended Jan. 1, 1999, versus $31.8 million, or 21 cents a share, a year earlier.
Analysts polled by research firm First Call expected Rubbermaid to earn 24 cents per share for the quarter.
The improved performance was due largely to better-than-expected results in the Graco infant products business and improved profitability in its commercial and home products segments, the Wooster, Ohio-based company said.
Including one-time items, the company posted net earnings of $3.8 million, or 2 cents a share. The net earnings take into account an after-tax charge of $26.9 million related to the restructuring of Rubbermaid's North American and European operations and an after-tax $2.4 million charge related to its merger with Newell Co. (NWL).
Net sales for the quarter jumped 7 percent to $616.9 million from $574.3 million a year earlier.
"The operating profitability of all of our business units increased during the quarter, except, as expected, at our Little Tikes juvenile products business," said Wolfgang R. Schmitt, chairman and CEO. "In our juvenile products business, traditional toys maintained positive momentum in consumer takeaway at retail, but overall we experienced less-than-satisfactory sales, primarily related to an industry-wide change in buying patterns and reduced inventory by certain retailers."
Restructuring savings weren't as great as expected, Schmitt said, because the company halted consolidation of its North American manufacturing and distribution in order to review plans with Newell. But, he added, performance this year will improve as the review is complete and the company is moving toward leaner operations in North America and Europe.
Full-year results
For the full year, before non-operating gains and charges, Rubbermaid reported net earnings of $145.4 million, or 97 cents per diluted share, compared with $132.8 million, or 89 cents a share for 1997.
After one-time items, which included after-tax restructuring and merger charges totaling $77.2 million and an after-tax, divestiture-related gain of $14.7 million, the company's net earnings were reduced to $82.9 million, or 55 cents a share.
The results were a penny shy of First Call estimates.
Net sales rose 6 percent to $2.554 billion.
Rubbermaid shares were up 3/8 at 33-5/8 in late morning trade on the New York Stock Exchange. 
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Rubbermaid
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