UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 18, 1995
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NEWELL CO.
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(Exact name of registrant as specified in its charter)
Delaware 1-9608 36-3514169
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
29 East Stephenson Street, Freeport, Illinois 61032
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (815) 235-4171
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Item 5. Other Events.
Newell Co. issued a news release dated October 18, 1995
announcing its results for the third quarter and nine months ended
September 30, 1995. A copy of the news release is attached as Exhibit
99.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
(99) News Release dated October 18, 1995.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
NEWELL CO.
(Registrant)
/s/ William T. Alldredge
Date: October 31, 1995 By: --------------------------
William T. Alldredge
Vice President -- Finance
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EXHIBIT INDEX
Exhibit
No. Description
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99 News Release dated October 18, 1995
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EXHIBIT 99
NEWS RELEASE
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NEWELL CO. REPORTS RECORD SALES AND EARNINGS
FREEPORT, ILLINOIS, October 18, 1995 -- Newell announced today
that sales and earnings reached record highs for the third quarter and
nine months ended September 30, 1995.
For the 1995 third quarter, net sales were $651.3 million, up 18%
from $553.2 million achieved in the third quarter of 1994. Net income
in the quarter increased 12% to $65.1 million from $58.0 million and
earnings per share were 41 cents, an 11% increase from 37 cents
achieved in the third quarter of 1994.
The increase in sales for the quarter is primarily attributable
to contributions from Eberhard Faber, Newell Europe, and the Del Mar
and LouverDrape operations of Levolor Home Fashions, all acquired in
1994. The increases in net income and earnings per share for the
quarter are primarily attributable to improved profitability at
businesses owned more than two years (core businesses) and the
contribution from Eberhard Faber.
For the first nine months, sales were up 23% to $1,829.2 million
from $1,490.2 million in 1994. Net income was $156.1 million, up 17%
from $133.5 million in 1994. Earnings per share were 99 cents, up 17%
from 85 cents in 1994.
The increase in sales for the first nine months is also primarily
attributable to the 1994 acquisitions. The increases in net income
and earnings per share for the first nine months are primarily
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attributable to contributions from the 1994 acquisitions, improved
profitability at core businesses and a reduction in other nonoperating
expenses vs. 1994.
William P. Sovey, Newell's Vice Chairman and CEO, stated, "We're
very pleased that our balanced growth strategy, which relies on
contributions from acquisitions and growth on the part of our core
businesses, has enabled us to achieve record sales and earnings,
especially in the face of a sluggish retail environment. Through the
deliberate application of our strategy, we are confident that we can
produce record results for the remainder of 1995 and beyond."
Newell manufactures and markets high-volume staple consumer
products which are sold through a variety of retail and wholesale
distribution channels. Product categories include housewares,
hardware, home furnishings, and office products.
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<TABLE>
<CAPTION>
NEWELL CO.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in millions except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------ ------------------------------------------
1995 1994 % Change 1995 1994 % Change
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales $651.3 $553.5 17.7% $1,829.2 $1,490.2 22.7%
Cost of products sold 444.1 374.0 1,265.7 1,016.3
------------ ------------ ------------ ------------
GROSS INCOME 207.2 179.2 15.6% 563.5 473.9 18.9%
% of sales 31.8% 32.4% 30.8% 31.8%
Selling, general &
administrative expense 87.0 76.2 268.8 228.0
------------ ------------ ------------ ------------
OPERATING INCOME 120.2 103.0 16.7% 294.7 245.9 19.8%
% of sales 18.5% 18.6% 16.1% 16.5%
Nonoperating expenses:
Interest expense 12.6 7.7 36.8 19.5
Interest Income (0.3) (0.2) (1.2) (0.7)
Goodwill 4.8 3.8 13.9 10.9
Other (5.4) (5.0) (15.0) (9.6)
------------ ------------ ------------ ------------
11.7 6.3 34.5 20.1
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INCOME BEFORE TAXES 108.5 96.7 12.2% 260.2 225.8 15.2%
% of sales 16.7% 17.5% 14.2% 15.2%
Income taxes 43.4 38.7 104.1 92.3
Effective rate 40.0% 40.0% 40.0% 40.9%
------------ ------------ ------------ ------------
NET INCOME $65.1 $58.0 12.2% $156.1 $133.5 16.9%
% of sales 10.0% 10.5% 8.5% 9.0%
============ ============ ============ ============
EARNINGS PER SHARE $0.41 $0.37 10.8% $0.99 $0.85 16.5%
============ ============ ============ ============
Average shares outstanding 158.4 157.8 0.4% 158.1 157.8 0.2%
</TABLE>
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