DOW JONES NEWSWIRES

Newell Rubbermaid Inc. (NWL) swung to a fourth-quarter loss on write-downs and slumping margins as the consumer products company halved its dividend in efforts to protect its investment-grade credit rating and maintain access to the tight credit markets.

The company said it anticipates keeping the dividend at 10.5 cents a share this year. That would result in some $115 million in 2009 savings.

Newell Rubbermaid also projected first-quarter earnings below analysts' estimates, seeing earnings of 7 cents to 12 cents a share on a revenue decline in the low to mid-teens on a percentage basis. Analysts surveyed by Thomson Reuters expected earnings of 17 cents on an 11% drop in revenue to $1.28 billion.

"Weakness in consumer spending, compounded by inventory reductions at retail, negatively impacted both sales and productivity," Chief Executive Mark Ketchum said Thursday.

The company, which makes brands such as Sharpie, Rolodex and Paper Mate, posted a fourth-quarter net loss of $256.7 million, or 93 cents a share, compared with year-earlier net income of $105.4 million, or 38 cents a share. The latest results include write-downs of 98 cents; excluding that and other items earnings sank to 11 cents from 47 cents.

Net sales fell 12% to $1.45 billion.

Last month, the company slashed its fourth-quarter outlook to earnings of 6 cents to 10 cents with net sales declining by the low teens.

Gross margin slid to 30% from 35.1% on the sales woes.

Rubbermaid said in December it would continue with its plan to cut its work force by 8% to 10% and temporarily shut down some factories to cut inventory and freeze employees' pay levels.

The company projected 2009 earnings of $1 to $1.25 a share with net sales falling 10% to 15%. Analysts expected $1.10 on an 8% revenue drop to $5.91 billion.

Newell Rubbermaid's shares closed Wednesday at $9.21 and haven't traded premarket. It's down by 55% since mid-September.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com

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