Maker of Rubbermaid and CrockPot says tariffs could cost $100 million

Ty Wright | Bloomberg | Getty Images

An employee stacks containers as they come out of the molding machine at the Newell Rubbermaid factory in Mogadore, Ohio

The maker of Rubbermaid said tariffs could cost it $100 million, sending shares of Newell Brands tumbling more than 14 percent on Monday.

“Virtually ever business has been impacted with the greatest exposure on Baby, Appliances and Food,” CEO Michael Polk said on a conference call Monday, according to a FactSet transcript.

Newell, which also makes CrockPot, Sharpie and Sunbeam products, said it was appealing the tariffs and considering alternative sources for materials, but warned its ability to meet targets for the second half of the year could be hit by U.S. duties on goods from China as well as the retaliatory tariffs imposed by Canada and the European Union in response to the U.S. tariffs on steel and aluminum.

The current pricing and outlook assumes a 10 percent tariff, but the Trump administration recently made threats of raising that to 25 percent, and if that becomes reality they will have to raise prices, he said.

Second quarter net sales from continuing operations fell to $2.2 billion from $2.25 billion in part because of volume declines from the liquidation of Toys R Us, the company said.

Earlier this year, billionaire activist investor Carl Icahn announced he had taken a greater than 6 percent stake in Newell Brands, calling it undervalued. Icahn helped broker a deal between the company and another activist, the hedge fund Starboard Value, that ended a proxy contest and resulted in new directors being added to the board.

Newell shares closed Monday down 14.3 percent, at $22.76.