Newell Rubbermaid's stock plummeted Friday as the Sandy Springs company lowered its 2011 sales projections in response to weaker consumer confidence.
The consumer products company said it sees disappointing economic conditions in the United States and a continued rise in the price of materials beyond what it expected.
Several of Newell Rubbermaid's large retail customers have said they are reducing growth expectations for the year, particularly for the semi-discretionary items Newell Rubbermaid makes, president and CEO Mark Ketchum said in a statement.
The company has a diverse stable of brands such as Calphalon cookware, Rubbermaid storage and Sharpie pens.
In a research note, Gimme Credit research director Carol Levenson said customers including Staples have cut growth projections, though Wal-Mart -- Newell Rubbermaid's biggest customer -- has not.
Ketchum said Newell Rubbermaid still expects sales growth, but anticipates it will be lower than the 4 to 5 percent it had previously projected. The company reduced that projection to 3 to 4 percent, and said its earnings per share could be as much as 15 percent lower than analysts currently expect.
The company's baby and parenting business, which includes brands like Graco, was particularly hard hit, Ketchum said. It has been a drag on the company's overall performance.
Newell Rubbermaid's stock closed down $2, or 11.8 percent, at $14.97 a share.
