Newell Rubbermaid to Cut 3,000 Jobs

Newell Rubbermaid Inc. said it plans to eliminate 3,000 jobs, or 6% of its work force, over three years after first-quarter earnings at the maker of Calphalon cookware and Levolor blinds fell by half. The company for the second time cut its annual profit forecast, to $1.50 to $1.65 a share from the $1.70 to $1.80 estimated in February. Second-quarter earnings will be 37 cents to 42 cents a share, Newell said. Analysts’ average estimate is 44 cents. Chief Executive Joseph Galli is cutting jobs to help save $50 million this year and more than $100 million in future years. When he joined Newell in January, the company was bloated with too many middle managers and plants and wasn’t able to effectively procure raw materials from suppliers or provide customer service to retailers, analysts said. Newell also has been hindered by rising resin costs since buying plastic container maker Rubbermaid Inc. in 1999. Newell’s shares fell $1.49 to close at $25.85 on the New York Stock Exchange. The Freeport, Ill.-based company also makes Rolodex organizers, Goody hairbrushes and Little Tikes toys. First-quarter net income fell to $38.4 million, or 14 cents a share, from $76.2 million, or 28 cents, a year earlier. Sales fell 1.1% to $1.61 billion.