Newell Brands posted a first-quarter loss as it takes steps to make the business more efficient.
Newell posted a net loss of $102 million, or 25 cents per diluted share, versus net income of $228 million, or 54 cents per diluted share, in the year-earlier quarter. Adjusted for one time events, net loss was $26 million, or six cents a share, versus net income of $149 million, or 35 cents per diluted share in the year-prior quarter, the company announced.
Analysts polled by Yahoo Finance, on average, expected adjusted diluted loss per share of three cents and revenues of $1.79 billion.
Net sales were $1.81 billion versus $2.39 billion in the year-before quarter. Operating loss was $36 million versus operating income of $217 million in the year-previous period and adjusted operating income of $43 million versus $254 million, the company reported.
Newell’s Home & Commercial Solutions segment generated net sales of $971 million versus $1.4 billion in the year-past quarter, reflecting a core sales decline of 18.8%, the impact of the sale of the Connected Home & Security business at the end of the first quarter 2022, unfavorable foreign exchange, and certain category exits. Core sales declined in all three businesses: Kitchen, which combines the businesses previously known as Home Appliances and Food; Home Fragrance; and Commercial. Reported operating loss was $37 million, or negative 3.8% of sales, versus operating income of $89 million, or 6.6% of sales, in the 2022 period. Adjusted operating loss was $4 million, or negative 0.4% of sales, versus adjusted operating income of $108 million, or 8% of sales, in the 2022 quarter, the company stated.
The Outdoor & Recreation segment generated net sales of $270 million versus $388 million in the quarter a year earlier, reflecting a core sales decline of 27.4% and the impact of unfavorable foreign exchange. Reported operating loss was $1 million, or negative 0.4% of sales, compared with operating income of $46 million, or 11.9% of sales, in the period a year earlier. Adjusted operating income was $13 million, or 4.8% of sales, versus $50 million, or 12.9% of sales in the 2022 quarter.
In announcing the financial results, Chris Peterson, Newell Brands president, said, “First quarter results were relatively in-line with our expectations. We made meaningful progress implementing Project Phoenix and operationalizing the distribution and transportation benefits associated with Project Ovid. While we continue to face a very challenging macroeconomic environment, I am confident that our portfolio of leading consumer brands and talented employees will allow us to further strengthen the company in the years ahead, as we sharpen our strategy, optimize our cost structure and fully leverage the scale of the company.”
Project Phoenix is a previously announced initiative designed to strengthen Newell by leveraging its scale to further reduce complexity, streamlining the company’s operating model and driving operational efficiencies. Project Ovid is an initiative to boost supply chain and logistics efficiencies.
Mark Erceg, Newell CFO, added, “We are reaffirming our full year 2023 outlook, although we now expect to be towards the low end of the range since consumer discretionary spending in our categories remains under pressure making us incrementally more cautious on the overall operating environment. Despite these persistent near-term challenges, we remain committed to improving the company’s financial performance and creating sustainable shareholder value for our stakeholders.”
