Bemis Company Reports 2011 Second Quarter Results
(Thomson Reuters ONE) -
NEENAH, WISCONSIN, July 27, 2011 - Bemis Company, Inc. (NYSE-BMS) today reported
its 2011 second quarter results:
Highlights of the second quarter 2011:
* Net sales increased by 8 percent to a record $1.4 billion.
* Diluted earnings per share was $0.51, in line with management's second
quarter 2011 guidance of $0.48 to $0.54 per share.
* Flexible packaging segment operating profit continues to be negatively
impacted by higher raw material costs in advance of selling price
adjustments.
* Cash provided by operating activities totaled $91 million.
* Repurchases of Bemis common stock totaled 2.1 million shares.
* Management established earnings guidance for the third quarter of 2011 at
$0.56 to $0.61 per share, and total year 2011 earnings guidance was lowered
and narrowed to $2.08 to $2.18 per share, reflecting the total expected
impact of softening demand and stabilizing raw material costs during the
second half of the year.
"Results for the second quarter of 2011 were in line with our expectations,"
said Henry Theisen, Bemis Company's President and Chief Executive Officer.
"Profit margins were lower this quarter as a result of raw material cost
inflation that continued through the month of May. While North American sales
volumes have been keeping pace with the levels of 2010, we continue to be
cautious about expectations for the second half of 2011 in light of inflationary
pressures on our operating margins and consumer spending levels. Our guidance
for the remainder of the year assumes stabilizing raw material costs during the
second half of this year along with softening volume levels."
CONSOLIDATED RESULTS
Total Bemis net sales were $1.4 billion for the second quarter of 2011, a 7.9
percent increase from $1.3 billion for the same period of 2010. Sales growth
included a 3.4 percent increase from currency translation.
Diluted earnings per share for the second quarter of 2011 was $0.51 compared to
adjusted diluted earnings from continuing operations of $0.58 per share ($0.52
per share GAAP diluted earnings from continuing operations, as detailed in the
attached schedule, "Reconciliation of Non-GAAP Data") reported in the same
quarter of 2010. Performance for the second quarter of 2011 was negatively
impacted by increases in the cost of specialty resin raw materials which
continued through the first five months of 2011.
FLEXIBLE PACKAGING BUSINESS SEGMENT
Bemis' flexible packaging business segment reported net sales of $1.2 billion.
This represents an 8.1 percent increase compared to net sales of $1.1 billion
for the second quarter of 2010. Currency effects increased net sales by 3.0
percent. The remaining sales growth reflected higher selling prices compared to
the second quarter of 2010. Segment operating profit for the second quarter of
2011 was $116.3 million, or 9.5 percent of net sales, compared to adjusted
operating profit of $130.1 million, or 11.5 percent of net sales (Operating
profit on a GAAP basis was $122.7 million, or 10.9 percent of net sales, as
detailed in the attached schedule: "Reconciliation of Non-GAAP Data"), for the
same period of 2010. The effect of currency translation increased operating
profit in the second quarter of 2011 by $2.6 million compared to the same
quarter of 2010. Dramatic raw material cost increases that occurred during the
first quarter of 2011 negatively impacted operating profit for the second
quarter of 2011.
Commenting on the flexible packaging segment results, Theisen said, "As
expected, raw material cost increases continued to negatively impact our
operating profit this quarter in advance of selling price adjustments. In
addition, we experienced modestly lower sales volumes toward the end of the
second quarter compared to the strong volume levels that we generated during the
same period of 2010. Food price inflation has led to retail consumer price
increases, which may negatively impact consumer demand for some packaged food
products in the future. In our Latin American business, while we are pleased to
report improved operating performance in our Mexico operations, regional results
are being negatively impacted by raw material cost increases, substantial
inflation in Argentina, and lower customer demand levels as the strong Brazilian
currency negatively impacts the market for our customers' exported products. We
expect third quarter selling price adjustments to improve profit levels that
were negatively impacted by raw material cost increases that began late last
year and started to stabilize in June. We also expect continued
commercialization of new products during the second half of 2011 to partially
offset the impact of softer demand predicted by our customers."
PRESSURE SENSITIVE MATERIALS BUSINESS SEGMENT
Net sales from the pressure sensitive materials business segment for the second
quarter of 2011 were $151.5 million, a 5.8 percent increase compared to $143.2
million in the second quarter of 2010. Currency effects increased net sales by
5.7 percent. For the second quarter of 2011, operating profit totaled $11.8
million, or 7.8 percent of net sales, compared to operating profit for the
second quarter of 2010 of $11.7 million, or 8.2 percent of net sales. Currency
effects increased operating profit for the quarter by $0.8 million.
OTHER OPERATING (INCOME) EXPENSE, NET
For the second quarter of 2011, other operating income and expense included $5.4
million of fiscal incentive income, an increase of $1.2 million compared to $4.2
million for the second quarter of 2010. Fiscal incentives are associated with
net sales and manufacturing activities in certain South American operations and
are included in flexible packaging segment operating profit.
CAPITAL STRUCTURE AND CASH FLOW
Total debt as of June 30, 2011 was $1.5 billion, an increase of $196 million
from the balance of $1.3 billion at December 31, 2010. Increased levels of
working capital during the first half of 2011 reflect higher raw material costs
in inventory and subsequently higher selling prices in accounts receivable.
During the six months ended June 30, 2011, Bemis purchased 3.8 million shares
of Bemis common stock for $123.1 million. The remaining share repurchase
authorization as of June 30, 2011 was 5.7 million shares.
2011 EARNINGS OUTLOOK
Management expects adjusted diluted earnings per share for the third quarter of
2011 to be in the range of $0.56 to $0.61. In light of the anticipated
softening demand levels for the second half of 2011 and the assumption that raw
material costs will remain relatively stable for the remainder of this year,
management expects adjusted diluted earnings per share for the full year 2011 to
be in the range of $2.08 to $2.18 per share. Capital expenditures are expected
to be approximately $125 million for the full year 2011.
PRESENTATION OF NON-GAAP INFORMATION
This press release refers to non-GAAP financial measures: adjusted operating
profit, adjusted operating profit as a percentage of net sales, and adjusted
diluted earnings per share from continuing operations. These non-GAAP financial
measures adjust for factors that are unusual or unpredictable. These measures
exclude the impact of certain amounts related to acquisition related financing
costs, acquisition related professional and legal fees, and purchase accounting
adjustments for inventory and order backlog. This adjusted information should
not be construed as an alternative to results determined in accordance with
accounting principles generally accepted in the United States of America (GAAP).
It is provided solely to assist in an investor's understanding of the impact of
these items on the comparability of the Company's operations.
FORWARD LOOKING STATEMENTS
Statements in this release that are not historical, including statements
relating to the expected future performance of the Company, are considered
"forward-looking" and are presented pursuant to the safe harbor provisions of
the Securities Litigation Reform Act of 1995. Such content is subject to
certain risks and uncertainties, including but not limited to future changes in
cost or availability of raw materials, our ability to adjust selling prices,
consumer buying patterns, changes in customer order patterns, the results of
competitive bid processes, costs associated with the pursuit of business
combinations, a failure in our information technology infrastructure or
applications, foreign currency fluctuations, changes in working capital
requirements, changes in government regulations, and the availability and
related cost of financing from banks and capital markets. Actual future results
and trends may differ materially from historical results or those projected in
any such forward-looking statements depending on a variety of factors which are
detailed in the Company's regular SEC filings including the most recently filed
Form 10-K for the year ended December 31, 2010.
INVESTOR CONFERENCE CALL
Bemis Company, Inc. will webcast an investor telephone conference regarding its
second quarter 2011 financial results this morning at 10 a.m., Eastern Time.
Individuals may listen to the call on the Internet atwww.bemis.com under
"Investor Relations." Listeners are urged to check the website ahead of time to
ensure their computers are configured for the audio stream. Instructions for
obtaining the required, free, downloadable software are available in a pre-event
system test on the site.
ABOUT BEMIS COMPANY, INC.
Bemis Company is a major supplier of flexible packaging and pressure sensitive
materials used by leading food, consumer products, healthcare, and other
companies worldwide. Founded in 1858, the Company is included in the S&P 500
index of stocks and reported 2010 net sales of $4.8 billion. The Company's
flexible packaging business has a strong technical base in polymer chemistry,
film extrusion, coating and laminating, printing, and converting. Headquartered
in Neenah, Wisconsin, Bemis employs nearly 20,000 individuals worldwide. More
information about the Company is available at our website, www.bemis.com.
Bemis Company, Inc.
One Neenah Center, 4th Floor
P.O. Box 669
Neenah, Wisconsin 54957-0669
For additional information please contact:
Melanie E. R. Miller
Vice President, Investor Relations and Treasurer
(920)527-5045
Kristine Pavletich
Public Relations Specialist
(920)527-5159
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2011 2010 2011 2010
Net sales $1,370,220 $1,270,215 $2,694,648 $2,291,944
Cost of products
sold 1,136,244 1,039,896 2,230,819 1,875,784
Gross Profit 233,976 230,319 463,829 416,160
Operating
expenses:
Selling, general,
and administrative
expenses 122,723 112,743 248,898 219,730
Research and
development 9,986 8,725 17,573 14,350
Other operating
(income) expense,
net (4,057) (3,637) (11,118) 4,799
Operating Income 105,324 112,488 208,476 177,281
Interest expense 18,110 18,540 36,446 36,677
Other non-
operating (income)
expense, net (346) 832 1,374 (2,207)
Income from
continuing
operations before
income taxes 87,560 93,116 170,656 142,811
Provision for
income taxes 32,000 33,500 62,300 51,400
Income from
continuing
operations 55,560 59,616 108,356 91,411
Income from
discontinued
operations, net of
tax 1,961 2,615
Net income 55,560 61,577 108,356 94,026
Less: Net income
attributable to
noncontrolling
interests 1,308 1,938 2,894 3,604
Net income
attributable to
Bemis Company,
Inc. $54,252 $59,639 $105,462 $90,422
Amounts
attributable to
Bemis Company,
Inc. :
Income from
continuing
operations, net of
tax $54,252 $57,678 $105,462 $87,807
Income from
discontinued
operations, net of
tax 1,961 2,615
Net income
attributable to
Bemis Company,
Inc. $54,252 $59,639 $105,462 $90,422
Basic earnings per
share:
Income from
continuing
operations $0.51 $0.52 $0.98 $0.79
Income from
discontinued
operations 0.02 0.02
Net income
attributable to
Bemis Company,
Inc. $0.51 $0.54 $0.98 $0.81
Diluted earnings
per share:
Income from
continuing
operations $0.51 $0.52 $0.98 $0.79
Income from
discontinued
operations 0.02 0.02
Net income
attributable to
Bemis Company,
Inc. $0.51 $0.54 $0.98 $0.81
Cash dividends
paid per share $0.24 $0.23 $0.48 $0.46
Weighted average
shares outstanding
(includes
participating
securities):
Basic 106,742 111,098 107,742 111,104
Diluted 107,150 111,202 108,122 111,222
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(dollars in thousands)
(unaudited)
June 30, December 31,
ASSETS 2011 2010
Cash and cash equivalents $72,733 $60,404
Accounts receivable, net 762,275 637,738
Inventories, net 740,376 673,863
Prepaid expenses and other current assets 101,941 94,914
Total current assets 1,677,325 1,466,919
Property and equipment, net 1,527,220 1,540,753
Goodwill 1,033,032 1,013,697
Other intangible assets, net 195,660 200,116
Deferred charges and other assets 70,053 64,346
Total other long-term assets 1,298,745 1,278,159
TOTAL ASSETS $4,503,290 $4,285,831
LIABILITIES
Current portion of long-term debt $3,587 $2,941
Short-term borrowings 18,763 6
Accounts payable 581,427 548,042
Accrued salaries and wages 97,838 103,024
Accrued income and other taxes 18,542 21,246
Total current liabilities 720,157 675,259
Long-term debt, less current portion 1,460,218 1,283,525
Deferred taxes 175,543 158,289
Other liabilities and deferred credits 207,911 241,326
TOTAL LIABILITIES 2,563,829 2,358,399
EQUITY
Bemis Company, Inc. shareholders' equity:
Common stock issued (126,863,012 and 126,627,875
shares) 12,686 12,663
Capital in excess of par value 573,794 568,035
Retained earnings 1,804,975 1,751,908
Accumulated other comprehensive income 162,664 91,117
Common stock held in treasury, 22,767,891 and
18,953,971 shares at cost (667,242) (544,100)
Total Bemis Company, Inc. shareholders' equity 1,886,877 1,879,623
Noncontrolling interests 52,584 47,809
TOTAL EQUITY 1,939,461 1,927,432
TOTAL LIABILITIES AND EQUITY $4,503,290 $4,285,831
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
June 30,
2011 2010
Cash flows from operating activities
Net income $108,356 $94,026
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 112,097 101,784
Excess tax benefit from share-based payment
arrangements (885) (2,863)
Share-based compensation 8,743 9,257
Deferred income taxes 10,220 2,334
Income of unconsolidated affiliated company (1,582) (1,394)
(Gain) loss on sales of property and equipment 954 (84)
Changes in working capital, excluding effect of
acquisitions (130,767) (70,777)
Net change in deferred charges and credits (24,212) (3,571)
Net cash provided by operating activities 82,924 128,712
Cash flows from investing activities
Additions to property and equipment (62,238) (39,290)
Business acquisitions and adjustments, net of cash
acquired (16,206) (1,222,111)
Proceeds from sales of property and equipment 683 853
Net cash used in investing activities (77,761) (1,260,548)
Cash flows from financing activities
Proceeds from issuance of long-term debt 4,723 13,464
Repayment of long-term debt (2,050) (38,150)
Net borrowing of commercial paper 173,250 233,619
Net borrowing of short-term debt 17,574 4,143
Cash dividends paid to shareholders (51,693) (51,105)
Common stock purchased for the treasury (123,142)
Excess tax benefit from share-based payment
arrangements 885 2,863
Stock incentive programs and related withholdings (3,676) (13,315)
Net cash provided by financing activities 15,871 151,519
Effect of exchange rates on cash and cash equivalents (8,705) (5,084)
Net increase (decrease) in cash and cash equivalents 12,329 (985,401)
Cash and cash equivalents balance at beginning of year 60,404 1,065,687
Cash and cash equivalents balance at end of period $72,733 $80,286
BEMIS COMPANY, INC. AND SUBSIDIARIES
OPERATING PROFIT AND PRETAX PROFIT
(in millions)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
2011 2010 2011 2010
Flexible Packaging operating profit $116.3 $122.7 $232.6 $215.0
Pressure Sensitive Materials operating
profit 11.8 11.7 21.7 18.3
General corporate expenses (22.8) (21.9) (45.8) (56.0)
Operating income 105.3 112.5 208.5 177.3
Interest expense (18.1) (18.5) (36.4) (36.7)
Other non-operating income (expense), net 0.4 (0.9) (1.4) 2.2
Income from continuing operations before
income taxes $87.6 $93.1 $170.7 $142.8
BEMIS COMPANY, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP DATA
(in millions, except per share amounts)
(unaudited)
Three Months
Ended Six Months Ended
June 30, June 30,
2011 2010 2011 2010
Reconciliation of GAAP to Non-GAAP Operating
Profit
and Operating Profit as a Percentage of Net
Sales by Segment
Flexible Packaging
Net Sales $1,218.7 $1,127.0 $2,398.0 $2,008.4
Operating Profit as reported 116.3 122.7 232.6 215.0
Non-GAAP adjustments:
Purchase accounting for inventory and
order backlog (1) 3.5 15.4
Acquisition related integration costs
(4) 3.9 3.9
Operating Profit as adjusted $116.3 $130.1 $232.6 $234.3
Operating Profit as a percentage of
Net Sales
As Reported 9.5% 10.9% 9.7% 10.7%
As Adjusted 9.5% 11.5% 9.7% 11.7%
Pressure Sensitive Materials
Net Sales $151.5 $143.2 $296.6 $283.5
Operating Profit as reported 11.8 11.7 21.7 18.3
Non-GAAP adjustments:
Operating Profit as adjusted $11.8 $11.7 $21.7 $18.3
Operating Profit as a percentage of
Net Sales
As Reported 7.8% 8.2% 7.3% 6.5%
As Adjusted 7.8% 8.2% 7.3% 6.5%
Reconciliation of GAAP to Non-GAAP
Earnings per Share
Diluted earnings per share from
continuing operations, as reported $0.51 $0.52 $0.98 $0.79
Non-GAAP adjustments per share, net
of taxes:
Purchase accounting for inventory
and order backlog (1) 0.02 0.09
Transaction related costs (2) 0.08
Financing impact of the Alcan
Packaging Food
Americas acquisition (3) 0.06
Acquisition related integration
costs (4) 0.04 0.04
Diluted earnings per share from
continuing operations, as adjusted $0.51 $0.58 $0.98 $1.06
1. Expenses related to the purchase accounting impact of the fair value write-
up of inventory and a charge for the fair value of the customer order
backlog, both in the Alcan Packaging Food Americas acquisition.
2. Transaction related costs are related primarily to our acquisition of Alcan
Packaging Food Americas. These costs consist of legal, accounting, and other
professional fees.
3. Impact from the July 2009 financing of the Alcan Packaging Food Americas
acquisition, which included the issuance of 8.175 million shares and $800
million of public debt. The EPS impact includes the effect of the interest
expense on the debt and the dilutive effect of the newly issued shares until
the acquisition was completed on March 1, 2010.
4. Acquisition related integration costs include severance costs for workforce
reductions and equipment relocation costs.
PDF Version Bemis Q211 Financials:
http://hugin.info/144721/R/1533701/467280.pdf
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Bemis Company Inc via Thomson Reuters ONE
[HUG#1533701]
Unternehmensinformation / Kurzprofil:
Datum: 27.07.2011 - 14:01 Uhr
Sprache: Deutsch
News-ID 56760
Anzahl Zeichen: 30238
contact information:
Town:
Neenah, Wisconsin
Kategorie:
Business News
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