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Rubbermaid cuts 3,000 jobs
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May 3, 2001: 9:57 a.m. ET
Consumer products maker profit falls 50%; cuts staff in restructuring
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NEW YORK (CNNfn) - Newell Rubbermaid Inc. Thursday reported first-quarter earnings tumbled 50 percent, missing forecasts on Wall Street, and the maker of Levolor blinds, Rubbermaid kitchen gear and other products said it was cutting 3,000 jobs.
The company also forecast a weak second half due to the sluggish economy, and its stock tumbled on the news.
In addition, the Freeport, Ill.-based company, which also makes Rolodex organizers and Paper Mate and Parker pens, said it will consolidate some manufacturing plants. The job cuts equal about 6 percent of its work force.
Newell Rubbermaid (NWL: down $1.61 to $25.73, Research, Estimates) reported net income fell to $38.4 million, or 14 cents a share, from $76.7 million, or 28 cents a share, a year earlier. Excluding one-time charges, Newell Rubbermaid's net income was $47.4 million, or 18 cents a share. Analysts had forecast profits of 19 cents a share excluding one-time items, according to First Call, which tracks forecasts on Wall Street.
 The company said it does not expect to see a major recovery in the second half of the year due to continuing weak worldwide economic conditions. It sees second-quarter earnings per share of 37 to 42 cents, below the 44-cent First Call analysts' consensus.
Newell Rubbermaid also readjusted its full-year earnings guidance to $1.50 to $1.65 per share from the previous $1.70 to $1.80 per share.
Sales in the quarter fell 1.2 percent to $1.61 billion.
"We expect the economic climate to be quite challenging for the balance of 2001, and we're taking aggressive and strategic steps to revitalize the core businesses," said Joseph Galli Jr., Newell Rubbermaid's president and CEO. 
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