Newell Rubbermaid working to reposition Rubbermaid
August 1, 2014-- Home Textiles Today,
Atlanta – Newell Rubbermaid generated a double-digit jump in net income during the second quarter, although performance was uneven for its Home Solutions division.
Home Solutions sales slipped 2.6% to $388.9 million. The company has been pulling back on some low-margin business in Rubbermaid, executives said during the company’s quarterly conference call yesterday. On the up side, Calphalon showed growth during the period thanks to broader distribution.
“The key to strengthening the Home Solutions businesses is grounded in the repositioning of the Rubbermaid consumer,” said Michael Polk, president and ceo. “It's one of our biggest brand challenges, and we've got a lot of ideas in the pipeline we will execute over the next 12 to 18 months.”
As the company looks to boost its food and beverage business, it plans to downplay less differentiated product and leverage its acquisition of Ignite to go after the beverage container market, he said.
Incorporating Ignite “accelerates our ability to participate in one of the fastest-growing segments of the housewares category,” Polk added. “They’ve got a couple of pieces of intellectual property that we think are very valuable in this category, and enable the creation of differentiated products, relative to the competitive set.”
For the second quarter ended June 30, net income climbed 37.2% to $150.6 million. Sales rose 3.1% to $1.5 billion.
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