Shares of Newell Brands Inc. NWL, +3.19% dropped more than 3% in the extended session Friday after the consumer products company behind brands such as Rubbermaid and Elmer glue said it was embarking on a restructuring and savings plan intended to “streamline” its North American distribution network. The goal is to improve the company’s cost structure, Newell Brands said. The plan will be “substantially” completed by the end of fiscal 2024, and includes goals such as reducing the number of distribution centers and automation investments. Newell said it expects to realize annual pre-tax cost savings between $25 million and $35 million by the time the plan is in place. It will incur in about $37 million to $49 million in restructuring and restructuring-related charges, however. That includes charges related to severance payments and to reducing its footprint. Newell also said it expects to incur in $30 million to $40 million in capital expenditures related to the project. Shares of Newell ended the regular trading day up 3.2%.
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