Newell Brands' Transformation Plan Is Delivering
Newell Brands (NASDAQ: NWL), parent of many well-known consumer brands such as Rubbermaid, Calphalon, Graco, Coleman, and others, is executing on its turnaround plan. If management can demonstrate lower costs and show sales growth, the stock is well positioned to rise.
Newell, which reports earnings before market open on Friday, Nov. 1, got into trouble by historically relying on mergers and acquisitions to fuel growth. The company grew quickly, but increasingly showed weakness integrating and operating the new businesses.
The 1999 acquisition of Rubbermaid -- at that time the largest Newell had ever attempted -- looked like an ideal fit. Rubbermaid's products and sales channels were mostly the same as Newell's, offering cost savings by combining operations. Also, it brought some high-margin branded products to the table.
Source Fool.com
