"I am pleased that we delivered third quarter earnings and cash flow ahead of guidance despite expected revenue declines stemming from sustained challenges in the economy,"said Mark Ketchum, president and chief executive officer of Newell Rubbermaid. "We are especially pleased with our gross margin improvement, which reflects continued benefits from our planned product exits as well as a more reasonable input cost environment compared with a year ago. Our successful management of costs and our ability to drive down working capital allows us to continue to make strategic SG&A investments, while raising guidance for full year normalized EPS and operating cash flow."

Net sales declined 17.7 percent to $1.45 billion in the third quarter, compared to $1.76 billion in the prior year, in line with the company's guidance of a decline in the high teens percent range. Core sales were down almost 10 percent, while planned product line exits and foreign currency translation reduced net sales by 6 percent and 2 percent, respectively.

Gross margin for the quarter was 37.4 percent, up 480 basis points from last year, as the positive impact from product line exits, moderating input costs and year-over-year pricing initiatives more than offset the effects of reduced manufacturing volumes.

Excluding Project Acceleration restructuring costs of $27.0 million in 2009 and $13.5 million in 2008, operating income was $192.3 million, or 13.3 percent of sales, in the third quarter 2009, compared to $180.4 million, or 10.2 percent of sales, in the prior year.

Normalized earnings, which exclude Project Acceleration restructuring costs, related impairment charges and associated tax effects, the dilutive impact in 2009 of the company's convertible notes, and other items, were $0.38 per diluted share, ahead of the company's guidance and compared to $0.35 per diluted share in the third quarter 2008. For the third quarter 2009, diluted earnings per share on a normalized basis excludes the impact of $0.02 per diluted share related to the conversion feature of the convertible notes issued in March 2009 and the associated hedge transactions. Other items in the third quarter 2008 include the net of tax impact of the company's purchase of a call option with respect to its $250 million of 6.35% Reset notes due 2028 for approximately $52 million, or approximately $0.13 per diluted share, as well as a tax benefit of $3.5 million, or $0.01 per diluted share. (A reconciliation of the "as reported" results to "normalized" results is included below.)

Net income, as reported on a GAAP basis, was $85.5 million, or $0.28 per diluted share. This compares to $55.0 million, or $0.20 per diluted share, in the third quarter 2008.

The company generated operating cash flow of $327.7 million during the third quarter, ahead of the company's guidance of $200 to $250 million. The improvement was driven by the increase in earnings and working capital management, particularly inventory. This compares to operating cash flow of $364.3 million in the prior year. Capital expenditures were $37.0 million in the third quarter, compared to $43.9 million last year.

A reconciliation of the third quarter 2009 and last year's results is as follows:

                                                                                          Q3 2009     Q3 2008 
                                                                                                              
 Diluted earnings per share (as reported)                                                 $0.28       $0.20   
                                                                                                              
 Project Acceleration restructuring costs and related impairment charges, net of tax                          
                                                                                          $0.07       $0.04   
                                                                                                              
 Convertible notes dilution                                                               $0.02       $0.00   
                                                                                                              
 Other items, net of tax                                                                  $0.00       $0.12   
                                                                                                              
 "Normalized" EPS                                                                         $0.38       $0.35   
                                                                                                              
                                                                                                              


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Nine Months Results

Net sales for the nine months ended September 30, 2009 declined 17.2 percent to $4.16 billion, compared to $5.02 billion in the prior year. Foreign currency translation reduced net sales by 4 percent, while planned product line exits lowered net sales by 6 percent. Acquisitions increased net sales by 1 percent and core sales softness contributed the remainder of the net sales decline.

Gross margin was 36.7 percent, a 310 basis point improvement versus the prior year. The positive impact from planned product line exits, lower input costs and 2008 pricing actions more than offset the effect of reduced manufacturing volumes and unfavorable mix.

Normalized earnings, which exclude Project Acceleration restructuring costs, related impairment charges and associated tax effects, the dilutive impact in 2009 of the company's convertible notes, and other items, were $1.04 per diluted share, compared to $1.11 per diluted share in the prior year. For the first nine months of 2009, diluted earnings per share on a normalized basis excludes the impact of $0.03 per diluted share related to the conversion feature of the convertible notes issued in March 2009 and the associated hedge transactions. Other items for the first nine months of 2009 include one-time costs of $0.01 per diluted share incurred for the early retirement of $325 million principal amount of medium-term notes and $0.01 per diluted share of other tax adjustments. Other items in the first nine months of 2008 were the same as those for the third quarter 2008. (A reconciliation of the "as reported" results to "normalized" results is included below.)

Net income, as reported on a GAAP basis, was $224.9 million, or $0.78 per diluted share. This compares to $204.4 million, or $0.73 per diluted share, in the prior year.

The company generated operating cash flow of $415.7 million during the first nine months of 2009, compared to $243.0 million in the prior year. Capital expenditures were $107.7 million, compared to $122.1 million in the prior year.

A reconciliation of the first nine months 2009 and last year's results is as follows:

                                                                                          YTD Q3 2009     YTD Q3 2008 
                                                                                                                      
 Diluted earnings per share (as reported)                                                 $0.78           $0.73       
                                                                                                                      
 Project Acceleration restructuring costs and related impairment charges, net of tax                                  
                                                                                          $0.22           $0.25       
                                                                                                                      
 Convertible notes dilution                                                               $0.03           $0.00       
                                                                                                                      
 Other items, net of tax                                                                  $0.02           $0.12       
                                                                                                                      
 "Normalized" EPS                                                                         $1.04           $1.11       
                                                                                                                      
                                                                                                                      


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2009 Full Year Guidance

The company continues to expect net sales for the full year will be at the unfavorable end of its guidance of a 10 to 15 percent decline. Core sales are expected to decline in the high single digit percent range. Product line exits are expected to contribute 4 to 6 percent of the sales decline and foreign currency translation is expected to reduce sales by 2 percent. Acquisitions are expected to contribute about 1 percent of sales growth.

The company is raising its guidance for normalized EPS to a range of $1.27 to $1.32 per diluted share and for operating cash flow to approximately $550 million, which is net of approximately $100 million in restructuring cash payments.

2009 Fourth Quarter Guidance

The company anticipates net sales will decline 2 to 4 percent for the fourth quarter 2009. Core sales are expected to be flat to slightly negative for the fourth quarter and product line exits are projected to reduce sales another 3 to 5 percent. Foreign currency translation is expected to increase sales by approximately 2 percent. The company expects normalized earnings of $0.23 to $0.28 per diluted share and operating cash flow of approximately $135 million.

A reconciliation of the fourth quarter and full year 2009 earnings outlook is as follows:

                                                                                          Q4 2009            FY 2009        
                                                                                                                            
 Diluted earnings per share                                                               $0.16 to $0.21     $0.93 to $0.98 
                                                                                                                            
 Project Acceleration restructuring costs and related impairment charges, net of tax                                        
                                                                                          $0.06 to $0.09     $0.28 to $0.31 
                                                                                                                            
 Convertible notes dilution                                                               -                  $0.03          
                                                                                                                            
 Other items, net of tax                                                                  -                  $0.02          
                                                                                                                            
 "Normalized" EPS                                                                         $0.23 to $0.28     $1.27 to $1.32 
                                                                                                                            
                                                                                                                            


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The impacts of the other items for the full year 2009 earnings outlook include only charges incurred during the first nine months of 2009. The impact of the convertible notes dilution of $0.03 represents the dilution through the first nine months of 2009 only. No provision is made for potential dilution from the conversion feature of the convertible notes and the associated hedge transactions in the fourth quarter of 2009.

Conference Call

The company's third quarter 2009 earnings conference call is scheduled for today, October 28, 2009, at 10:00 am ET. To listen to the webcast, use the link provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The webcast will be available for replay for two weeks. A brief supporting slide presentation will be available prior to the call under Quarterly Earnings in the Investor Relations section on the company's Web site.

Non-GAAP Financial Measures

This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.

About Newell Rubbermaid

Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with sales of approximately $6 billion and a strong portfolio of brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Technical ConceptsTM and Aprica®.

This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income or gross margin improvements or declines, Project Acceleration, capital and other expenditures, cash flow, dividends, restructuring costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy in light of the global economic slowdown; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to implement successfully information technology solutions throughout our organization; our ability to improve productivity and streamline operations; our ability to refinance short-term debt on terms acceptable to us, particularly given the recent turmoil and uncertainty in the global credit markets; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations and those factors listed in the company'smost recent quarterly report on Form 10-Q, and exhibit 99.1 thereto, filed with the Securities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this news release is as of the date indicated. The company assumes no obligation to update any forward-looking statements contained in this news release as a result of new information or future events or developments.

NWL-EA

 Newell Rubbermaid Inc.