Newell Rubbermaid’s (NWL: 13.75 -0.01 -0.07%) susceptibility to the global economic downturn is adversely affecting its top-line growth. The company recorded a 14% decline in net sales during 2009 amid a drastic squeeze in consumer disposable income and corporate spending.
Moreover, intense competition from other established manufacturers coupled with a debt-heavy balance sheet and exposure to adverse foreign currency translations severely undermine the company’s future growth prospects and profitability.
Consequently, our recommendation for Newell Rubbermaid is Underperform as we anticipate it to perform well below the broader market.
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