CEO of Newell Rubbermaid steps down

<p>A month after announcing it would lay off 5,000 workers, struggling housewares maker Newell Rubbermaid Inc. said Monday its chief executive is stepping down by mutual agreement with the company's board. Its shares rose nearly 9 percent.</p><p>Joseph Galli, who led the company since 2001, has also resigned as a director, the Atlanta-based maker of Rubbermaid trash cans and Sharpie pens said.</p><p>Mark D. Ketchum, a member of the board of directors, will serve as the interim CEO while the board searches for a permanent replacement.</p><p>Newell Rubbermaid has been struggling in recent years.</p><p>On Sept. 15, the company said it expected third-quarter income from continuing operations in a range of 33 cents to 37 cents per share, excluding an impairment charge of $35 million, or 13 cents per share. Analysts were expecting earnings of 36 cents a share in the quarter. The company also said at the time that sales in the quarter were expected to slip as much as 2 percent from a year ago.</p><p>As part of the announcement, Newell Rubbermaid, which releases its third-quarter earnings on Oct. 27, said it would launch a three-year plan to streamline manufacturing and cut overhead, including laying off 5,000 workers. It said it plans to close one-third of its 80 factories worldwide.</p><p>Newell Rubbermaid reported a loss from continuing operations of $19.1 million, or 7 cents per share, and sales of $6.75 billion last year.</p><p>The company said its sales have been weakened by the decision to drop low-margin product lines.</p><p>The search for a new permanent chief executive, meanwhile, will focus on candidates with proven track records that encourage growth and innovation while reducing costs, said William Marohn, the company's chairman.</p><p>In a statement, Galli was optimistic about his legacy with the Atlanta-based company.</p><p>"I am proud of what we have accomplished at Newell Rubbermaid and believe that we have established a strong platform from which the company can pursue growth and product innovation," he said. "I firmly believe that the company is in an excellent position and that its best years are still ahead."</p><p>Newell Rubbermaid shares rose $1.89 to close at $23.73 Monday on the New York Stock Exchange. Its shares have traded in a 52-week range of $19.05 to $25.69.</p>

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