Newell Rubbermaid reorganizing, cutting jobs

• Atlanta-based company known for Sharpie pens, namesake containers
• Third-quarter earnings topped estimates, dividend increased 50%
• Shares trading just shy of four-year high in bumpy market

NEW YORK (AP) — Newell Rubbermaid plans to cut more than 1,900 jobs, or about 10% of its global workforce the next 2½ years.

The consumer products company, known for Sharpie pens and its namesake containers, said Friday that savings from the job cuts will be reinvested into growing its brands globally and adding sales capabilities in emerging markets.

Newell Rubbermaid (NWL) also said its business will be restructured under two groups, a development organization and a delivery organization.

The announcement came as the Atlanta-based company reported third-quarter adjusted results that topped Wall Street's expectations. Newell Rubbermaid also raised its quarterly dividend by 50% to 15 cents per share.

Shares of the 103-year-old company were 4.5% higher Friday, just shy of a four-year high.

Newell Rubbermaid said it earned $108.3 million, or 37 cents per share, in the three months ended Sept. 30. That compares with a loss of $177.6 million, or 61 cents per share, a year earlier.

Excluding restructuring charges and other items, earnings were 47 cents per share. Analysts polled by FactSet expected 44 cents a share. There were no impairment charges in the current quarter while the prior-year period included a $382.6 million charge.

Revenue edged down to $1.54 billion from $1.55 billion. Wall Street forecast $1.55 billion.Core sales, which take out the unfavorable impact of foreign currency translation, rose 1.5% thanks to ongoing emerging markets growth and strong sales in its baby and parenting and Newell professional segments.

Gross margins improved on higher prices and better productivity, which offset escalating costs. Newell Rubbermaid still expects full-year earnings of $1.63 to $1.69 per share, with core sales up 2% to 3%. Analysts predict earnings of $1.68 per share.

In the restructuring, the company's development organization will include segments, such as tools, commercial products, writing, baby and parenting, home solutions and specialty. These six segments have been revised down from nine.

The group will also house Newell Rubbermaid's marketing, design, insight, research and development and corporate development staff.

Mark Tarchetti, previously head of global corporate strategy at Unilever, will lead the development organization. He joins Newell Rubbermaid in January as chief development officer.

The delivery organization will include the company's general management, supply chain, customer and channel development employees.

William A. Burke III, currently group president, will head the delivery organization and become chief operating officer.

Newell Rubbermaid said it is getting rid of its consumer and professional operating groups. The company also announced some executive departures, including Penny McIntyre, who served as president of Newell consumer; Ted Woehrle, chief marketing officer; Paul Boitmann, chief customer development officer.

In some executive appointments, Newell Rubbermaid named Joe Cavaliere global chief customer officer and appointed Richard Davies as chief marketing and insights officer. It also named Chuck Jones chief design and research and development officer.

Newell Rubbermaid said it will name a global chief supply chain officer in coming weeks.

The company says it will expand its restructuring program, called Project Renewal. The expanded program is anticipated to save about $180 million to $225 million on an annual basis once fully implemented by the end of 2015's second quarter.

Newell Rubbermaid foresees restructuring charges of between $250 million and $275 million during the same period.