Newell Brands (NWL) Reaffirms FY16, FY17 Guidance into Upcoming Conference

November 14, 2016 4:31 PM EST

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Newell Brands Inc. (NYSE: NWL) announced it will reaffirm its outlook for fiscal years 2016 and 2017, as provided in its third quarter 2016 earnings press release dated October 28, 2016, during its presentation tomorrow at the Morgan Stanley Global Consumer & Retail Conference.

Chief Executive Officer Michael Polk will present Tuesday, November 15, at 8:00 a.m. ET. The presentation will be webcast live and may be accessed through Events & Presentations in the Investor Relations section of the Newell Brands website at www.newellbrands.com. The webcast will be archived and available for replay following the live presentation.

The company is reaffirming its full year 2016 guidance as follows:

2016 Full Year Outlook
Reported net sales growth 122.5% to 128.0%
Reported earnings per share $1.15 to $1.20
Core sales growth 3.5% to 4.0%
Normalized earnings per share $2.85 to $2.90

As of April 15, 2016, Newell Brands core sales include pro forma core sales associated with the Jarden transaction as if the combination occurred April 15, 2015. Core sales exclude the impact of foreign currency, acquisitions (other than the Jarden acquisition) until their first anniversary and planned and completed divestitures (including the deconsolidation of Venezuela). Newell Brands expects to exit product lines with annual sales of $75 million to $125 million by the end of 2018, which will be reflected as a negative impact on core sales. Beginning with the second quarter of 2016, the company is excluding the amortization of intangible assets associated with acquisitions from its calculation of normalized earnings per share.

The company is reaffirming its full year 2017 guidance as follows:

2017 Full Year Outlook
Core sales growth 3% to 4%
Normalized earnings per share $2.85 to $3.05

2017 normalized earnings per share outlook includes $0.20 of dilution, net of interest benefits, related to the planned divestiture of about 10 percent of the company’s portfolio. The 2017 guidance assumes a January 1, 2017 completion of divestitures of all businesses designated as held for sale.

The company has presented forward-looking statements regarding normalized earnings per share and core sales growth for 2017, each of which is a non-GAAP financial measure. These non–GAAP financial measures are derived by excluding certain amounts, expenses or income and/or certain impacts, including the impact of foreign exchange or business portfolio determinations, from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available and management cannot reliably predict all of the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on the company's full-year 2017 GAAP financial results.

Reconciliation of Non-GAAP Financial Measures

Reconciliations of the 2016 core sales growth and normalized earnings per share outlooks are as follows:

Year Ending December 31, 2016

Estimated net sales growth (GAAP) 122.5% to 128.0%
Less: Jarden net sales growth included in pro forma base 115.0% to 120.0%
Net sales growth, Adjusted Pro Forma (1) 7.5% to 8.0%
Less: Currency (1.0%) to (2.0%)
Acquisitions, net of divestitures (2) 6.0% to 7.0%
Venezuela deconsolidation (1.0

%)

Core Sales Growth, Adjusted Pro Forma 3.5% to 4.0%

(1) Adjusted pro forma reflects Jarden sales from April 16, 2016 and 2015, respectively.

(2) Acquisitions, net of divestitures represents estimated sales of The Waddington Group, Inc., Jostens, Inc. and Elmer's Products, Inc. until the one year anniversary of their respective dates of acquisition, net of the impacts of the divestiture of the Rubbermaid medical cart business in August 2015 and the divestiture of the Levolor and Kirsch window coverings brands ("Décor") in June 2016.

Year Ending December 31, 2016

Diluted earnings per share $1.15 to $1.20
Tools sale - tax on basis difference $0.33 to $0.35
Project Renewal and Project Lean restructuring and other costs $0.09 to $0.11
Integration costs to drive synergies $0.28 to $0.32
Estimated gain on sale of Décor $(0.24)
Jarden transaction-related costs, including debt/credit facility
extinguishment costs $0.19 to $0.21
Acquisition-related amortization* and inventory step-up $0.98 to $1.00
Normalized earnings per share $2.85 to $2.90

* Represents amortization of acquisition-related intangibles beginning in the second quarter of 2016.



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