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Banks earn $2.8 billion in third quarter; insurance fund in the red
Akron, Summit County jobless rates increase
Home prices rise for fourth month in a row
Economy's rebound not as strong as first thought
Area home sales fall as U.S. sees gains
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Highway builders predict dim 2010
Most Read Stories
2 men shot during party in Fairlawn
Akron man killed in crash on his street
Akron Children's Hospital CEO, wife announce $1 million gift to support research
Victim of beating in Kent last week is declared dead at Akron hospital
Akron Circle K store robbed for second time this month
Police accuse bank robbery suspect of gobbling up note (with dashcam video)
Police: Pennsylvania man killed misbehaving puppy before Steelers game
Cancellation of Christmas not an option
Kangaroo tries to drown dog, attacks owner
Blogs:
Pets:
A Dog Named Christmas – Pet for the Holidays
The Heldenfiles:
Viewing Notes
Patrick McManamon:
Of pass interference and alleged "fake" injuries
Akron Zips:
No. 1 Akron to play Stanford next
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Seven players added to Tribe’s 40-man roster
Cleveland Browns:
Audio: Mangini disputes Poteat call, accuses Lions of faking injuries
Kent State Sports:
Flashes travel to Florida Atlantic
Cleveland Cavaliers:
Gameblog: Cavs vs. Philadelphia 76ers
Buckeye Blogging:
Buckeye Football – Present and Future
Varsity Letters:
Gulley to visit Central Michigan in December
All Da King's Men:
The Onion, By Any Other Name…
Blog of Mass Destruction:
Glaring Contradictions
Akron Law Café:
Don't Try to Have Fun if you are Depressed
See Jane Style:
Vintage Chic
Car Chase:
What Automotive Thing Are You Thankful For?
Let's Talk Real Estate:
Faye Dunaway to be Evicted?
Ohio Travels with Betty:
Monique asks how to get tickets for the Polar Express.
Sound Check:
Steely Dan Plays "The Royal Scam" at E.J. Thomas Hall
HRLite House:
Personal Rant – Why I am Glad I live in NEO
Akron Gamer:
Nintendo's Mario endures even as games come and go
Company also expects to raise prices due to high energy costs
By Ashley M. Heher
Associated Press
Published on Wednesday, Jul 16, 2008
CHICAGO: Newell Rubbermaid Inc., which employs about 700 in Mogadore, said Tuesday it would lay off workers, stop making some basic products and raise prices on others as much as 22 percent as it grapples with rising energy costs that make plastic more expensive.
CEO Mark Ketchum said the company hasn't yet determined how many of its 22,500 employees will lose their jobs.
''I think an easy way to say it is the world has really changed,'' Ketchum said. ''Products that once were economical to make out of plastic are becoming less so and they just don't fit our business model of driving innovation and investments and brand building.''
Newell Rubbermaid said it would divest, downsize or leave categories accounting for up to $500 million in sales. Those include some products in the Atlanta company's iconic Rubbermaid line of storage bins and organization gear. Executives said they also planned to trim other basic product lines, such as the plastic floor mats that go under desk chairs.
Prices for higher-margin items, such as stackable food containers will likely rise.
Already this year, Newell Rubbermaid has boosted prices twice, bringing in another $100 million in revenue. It plans a third round of increases in October and will begin adjusting prices for resin products each quarter in January.
''Frankly, we're behind the curve,'' Chief Financial Officer Pat Robinson said. ''We're seeing well in excess of $100 million in inflation.''
Particularly vexing to the company, which also lowered its full-year earnings guidance on Tuesday, are increasing oil and natural gas prices — important components of resin, a key ingredient in many of the company's plastic products.
Newell Rubbermaid has seen its shares tumble nearly 40 percent this year.
During an earnings call this spring, executives proclaimed Newell Rubbermaid's new development mantra as ''fewer, bigger, better'' as it warned of challenges controlling escalating costs.
Further fueling the company's trouble is the weakened U.S. dollar, which has fallen against the Chinese yuan. With more than 75 percent of Newell Rubbermaid's source products coming from China, materials from the country cost more.
The company's products include the Rubbermaid and Sharpie brands along with Calphalon cookware and cutlery and office fixtures such as Rolodex organizers and Parker pens.
Newell Rubbermaid said it expected full-year normalized earnings to be between $1.40 and $1.60 per share. That's down from the already lowered projection of $1.80 to $1.90 issued in April.
CHICAGO: Newell Rubbermaid Inc., which employs about 700 in Mogadore, said Tuesday it would lay off workers, stop making some basic products and raise prices on others as much as 22 percent as it grapples with rising energy costs that make plastic more expensive.
Get the full article here.
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