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Newell Brands CEO Saligram to retire; forecasts 2023 results below estimates

Published 02/10/2023, 07:50 AM
Updated 02/10/2023, 07:56 AM
© Reuters. FILE PHOTO: Sharpie markers owned by Newell Brands are seen for sale in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly
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(Reuters) - Newell Brands Inc said its top boss Ravi Saligram will retire effective May 16 and forecast annual results below analysts' estimates, sending the Sharpie maker's shares down 11% in premarket trading.

The company on Friday named its current President Chris Peterson as its next chief executive officer.

Newell has been grappling with a rise in costs that has hammered its profits amid an inflation-induced slowdown in consumer spending. The company said last month it will cut about 13% of its office positions.

"The business continued to be impacted by a tough operating environment, including slowing consumer demand for general merchandise categories, as well as inventory reductions at retail," Saligram said.

Newell's fourth-quarter results beat estimates, but the company projected fiscal 2023 net sales between $8.4 billion and $8.6 billion. Analysts had expected full-year net sales of $9.08 billion, according to Refinitiv IBES data.

The company forecast an annual profit per share of 95 cents to $1.08, compared with estimates of $1.42.

© Reuters. FILE PHOTO: Sharpie markers owned by Newell Brands are seen for sale in a store in Manhattan, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly

Newell also expects a first-quarter loss between 3 cents per share and 6 cents per share, compared with estimates of a profit of 23 cents.

Peterson served as the company's finance chief from December 2018 through January 2022. He also took on the CEO role on an interim basis in 2019, and has held executive positions at companies including Procter & Gamble (NYSE:PG) Co and Ralph Lauren Corp (NYSE:RL).

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