Newell Rubbermaid reaches resolution with NHTSA Newell Rubbermaid announced that the company has agreed to conduct a recall of harness buckles used on certain infant car seats made between July 2010 and May 2013. This voluntary recall reflects the satisfactory resolution of the company's ongoing safety discussions with the National Highway Traffic Safety Administration, or NHTSA. The estimated costs of the recall were accrued in the company's previously announced first quarter results and any further impact on net sales is expected to be immaterial.
Newell Rubbermaid reaffirms FY15 EPS $2.10-$2.18, consensus $2.15 Reaffirms FY15 core sales growth of 3.5%-4.5%. Sees FY15 net revenue up 4%-4%. The 2015 normalized EPS guidance range excludes between $80M-$120M of Project Renewal restructuring and restructuring-related charges and other project costs. Cumulative costs of Project Renewal are expected to be $540M-$575M pretax, with cash costs of $510M-$540M. Project Renewal is expected to generate annualized cost savings of approximately $470M-$525M by the end of 2017. The majority of these savings will be reinvested in incremental advertising and promotion in order to drive accelerated core sales growth and further geographic expansion in developing markets around the world. The company is currently on track to realize annualized cost savings from the first two phases of Project Renewal of approximately $270M-$325M by the middle of 2015.