Newell Rubbermaid Inc. has a market cap of $5.61 billion; its shares were traded at around $19.34 with a P/E ratio of 12.7 and P/S ratio of 1. The dividend yield of Newell Rubbermaid Inc. stocks is 1%.Hedge Fund Gurus that owns NWL: Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates, Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC. Mutual Fund and Other Gurus that owns NWL: John Rogers of Ariel Capital Management, David Williams of Columbia Value and Restructuring Fund, James Barrow of Barrow, Hanley, Mewhinney & Strauss, John Buckingham of Al Frank Asset Management, Inc., Kenneth Fisher of Fisher Asset Management, LLC, John Keeley of Keeley Fund Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:In June 2010, the Company announced a program to simplify and centralize its European business (the European Transformation Plan), which includes initiatives designed to transform the European organizational structure and processes to centralize certain operating activities, improve performance, leverage the benefits of scale and to contribute to a more efficient and cost-effective implementation of an enterprise resource planning program in Europe, all with the aim of increasing operating margins in the European region to at least ten percent. The European Transformation Plan is expected to result in aggregate restructuring and other plan-related costs of $110 to $115 million, to be substantially incurred by the end of 2011. The Company expects to realize annualized after-tax savings of $55 to $65 million upon completion of the implementation of the European Transformation Plan.
The Companys Office Products segment has operations in Venezuela, and the primary currency used by the Venezuelan operations to transact business is the Venezuelan Bolivar. Effective January 1, 2010, Venezuelas economy was characterized as highly inflationary because its three-year cumulative inflation exceeded 100%. The Company began accounting for its Venezuelan operations using highly inflationary accounting in January 2010. Under highly inflationary accounting, the Company remeasures assets, liabilities, sales and expenses denominated in Bolivar Fuertes into U.S. Dollars using the applicable exchange rate, and the resulting translation adjustments are included in earnings. During the year ended December 31, 2010, the Company recognized $5.6 million of foreign exchange gains associated with its operations in Venezuela, and such amount is included in other (income) expense, net, in the Consolidated Statement of Operations. As of December 31, 2010, the Companys Venezuelan subsidiary had approximately $29.5 million of net monetary assets denominated in Bolivar Fuertes, and a 5% increase/(decrease) in the applicable exchange rate would decrease/(increase) the Companys pretax income by $1.5 million.
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