Business News

Newell cuts 2018 forecasts, says it's exploring strategic options for some of its assets

Key Points
  • Sharpie pen maker Newell Brands said it is exploring strategic options for some of its assets.
  • The move could halve its number of factories and warehouses, as well as customer base.
  • Shares of the company fell 4 percent in premarket trade after Newell cut its full-year sales and profit forecasts.
Employees assemble food containers on a production line at the Newell Rubbermaid factory in Mogadore, Ohio.
Ty Wright | Bloomberg | Getty Images

Sharpie pen maker Newell Brands said on Thursday it is exploring strategic options for some of its assets that could reduce the number of factories and warehouses as well as its customer base by half.

The company's shares fell 6.1 percent in premarket trading.

The businesses being evaluated include Waddington, Rubbermaid Commercial Products and Mapa, Rawlings, Goody, and Rubbermaid Outdoor.

Newell said it intends to start considering options for the businesses immediately and expects any resulting transactions to be completed by the end of 2019.

The company revised its outlook for 2017, saying it now expects core sales to be up 0.8 percent, compared with its previous guidance of an increase of 1.5 percent to 2 percent.

Core sales results were hurt by efforts by retailers to rebalance inventories and the bankruptcy of leading baby product retailer Toys R Us.

The company said it expects normalized earnings per share for 2017 in the range of $2.72 to $2.76, down from its previous outlook of between $2.80 and $2.85.