November 2, 2017 / 2:48 PM / a year ago

BRIEF-Newell on conf call- Many retailers canceled late September back-to-school orders

Nov 2 (Reuters) - Newell

* On conf call- had planned Q3 writing instrument business to experience market growth equal to last year’s back-to-school of over 5%

* A number of retailers canceled late september back-to-school replenishment orders, will not get most of those orders back in Q4

* Revised outlook for writing contemplates continuing challenges, particularly in office superstore channel

* Were unable to take immediate pricing action to mitigate impact of elevated resin and logistic costs in aftermath of hurricane harvey

* Have now taken pricing actions which should help offset margin pressure from commodity increases

* Accounts receivable was adversely affected by Toys “R” Us bankruptcym, expect to recover a significant portion of our exposure

* Taking steps to reduce inventories and expect to make progress in Q4 and over the next year

* Newell - best for us to bottom out Toys R Us dynamic and understand how our negotiations in writing business will work out before giving 2018 guidance

* Newell CEO- baby has been growing unbelievably well, but think in Q4, should consider that it could be flat to down, and that’s built into our forecast

* Newell CEO- “ everybody anticipated a stronger back-to-school and therefore, the whole marketplace have to adjust to the shorter market growth”

* Newell - expect Q4 baby business to be impacted largely due to to inventory liquidation ahead of whatever restructuring program Toys “R” Us does Further company coverage: ( )

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