Bemis Company Reports 2008 First Quarter Results.NEENAH, Wis. -- Bemis Company Bemis Company, Inc. is an American manufacturer of flexible packaging products and pressure-sensitive materials, which are distributed worldwide. Bemis is part of the S&P 500 index. References
See: New York Stock Exchange : BMS BMS abbr. Bachelor of Marine Science ) today reported quarterly diluted earnings of $0.42 per share for the first quarter ended March 31, 2008, compared to $0.45 per share for the same quarter of 2007. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased to $947.3 million for the first quarter of 2008, a 4.2 percent increase from $909.1 million for the same period of 2007. Currency benefits contributed 5.1 percent to net sales for the quarter. "This quarter we experienced rising raw material costs, especially with regard to our specialty resin and chemical inputs," said Henry Theisen, Bemis Company's President and Chief Executive Officer. "In this environment, we continue to expand our product reach into new markets and geographies while maintaining a rigorous focus on cost management, waste reduction and production efficiency. I am pleased to see stability and modest volume growth returning to our largest flexible packaging end markets and look forward to modest overall volume growth for the total year 2008." BUSINESS SEGMENTS Flexible Packaging Flexible packaging, which represented about 83 percent of total Company net sales during the quarter, reported net sales of $781.6 million in the first quarter, a 5.2 percent increase compared to net sales of $743.2 million for the first quarter of 2007. Currency related sales growth totaled 4.8 percent. Segment operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the first quarter of 2008 was $79.3 million, or 10.1 percent of net sales. Segment operating profit for the first quarter of 2007 was $88.2 million, or 11.9 percent of net sales. Currency benefits added $2.3 million to operating profit in the first quarter of 2008. Lower operating profit reflects the impact of generally higher input costs in 2008 compared to the previous year. Commenting on the flexible packaging segment results, Theisen said, "During the first quarter, we experienced higher specialty resin costs which negatively impacted operating profit levels in our flexible packaging business segment. These and other inflationary cost pressures are being managed with selling price increases and profit improvement programs that we expect to result in improved performance for the remainder of the year. Flexible packaging unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. volume increased modestly compared to last year and to last quarter, which primarily reflects the scale up of new business awarded in 2007 and stabilizing consumer demand in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . We are encouraged by increased sales volume and mix improvements in our European flexible packaging business and are pleased with the start-up of our new medical device packaging plant in Northern Ireland Northern Ireland: see Ireland, Northern. Northern Ireland Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267. . Our continuing focus on cost management and productivity improvement will be critical to ensure that the benefits of improving volume levels deliver profit momentum to the flexible packaging segment in 2008." Pressure Sensitive Materials Net sales from the pressure sensitive materials business segment for the first quarter of 2008 were $165.7 million compared to $165.9 million in the first quarter of 2007. The benefits of currency were offset by lower unit sales. Segment operating profit for the first quarter of 2008 was $11.9 million, or 7.2 percent of net sales, compared to the first quarter of 2007 when segment operating profit was $14.3 million or 8.6 percent of net sales. Currency benefits added $1.2 million to operating profit in the first quarter of 2008. "Growth in our pressure sensitive materials segment is impacted by conditions in certain end markets and regional economies," said Theisen. "While our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. label product business is relatively stable, we are experiencing lower sales volumes in our higher margin technical product markets where customers with exposure to certain housing, industrial and medical markets are facing weak economic conditions. We continue to manage costs carefully through this difficult environment and look forward to the introduction of new products in 2008 which will further diversify our business and build momentum once the economy begins to recover." Other Costs (Income), Net For the first quarter of 2008, other costs and income included $7.7 million of financial income compared to $5.1 million for the first quarter of 2007. Capital Structure Total debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. was 33.4 percent at March 31, 2008, compared to 32.9 percent at December 31, 2007. Total debt as of March 31, 2008 was $875.8 million, an increase of $32.5 million from the balance of $843.3 million at December 31, 2007. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $55.6 million in the first quarter of 2008. Dividend Increase and Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. In the first quarter, the board of directors approved a 4.8 percent increase in the quarterly dividend. Bemis also repurchased one million shares of its common stock on the open market during the first quarter of 2008 for $26.8 million. 2008 Earnings Outlook Management expects second quarter 2008 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of to be in a range of $0.44 to $0.47 per share. Guidance for the full year 2008 remains unchanged at $1.78 to $1.88 per share. Management continues to expect capital expenditures to be in the $125 million range for 2008. Commenting on the outlook for the year, Theisen noted that the market conditions remain difficult to predict. "At Bemis, we are improving our cost structure and strengthening our competitive position across all of our markets. We intend to react swiftly to the challenges of this dynamic, global economic environment and build positive performance momentum going forward." Forward Looking Statements Statements in this release that are not historical, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the expected future performance of the Company, are considered "forward-looking" and are presented pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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, consumer buying patterns under certain economic conditions, changes in customer order patterns, the results of competitive bid processes, a failure in our information technology infrastructure or applications, foreign currency fluctuations and changes in prevailing market interest rates. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2007. Bemis Company, Inc. will webcast an investor telephone conference regarding its first quarter 2008 financial results this morning at 10 a.m., Eastern Time. Individuals may listen to the call on the Internet at www.bemis.com under "Investor Relations Investor relations The process by which the corporation communicates with its investors. ". 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. Bemis Company is a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, manufacturing, and other companies worldwide. Founded in 1858, the Company reported 2007 net sales of $3.6 billion. The Company's flexible packaging business has a strong technical base in polymer chemistry Polymer chemistry or macromolecular chemistry is a multidisciplinary science that deals with the chemical synthesis and chemical properties of polymers or macromolecules. , film extrusion, coating and laminating, printing and converting. The Company's pressure sensitive materials business specializes in adhesive technologies. Headquartered in Neenah, Wisconsin, Bemis employs about 15,700 individuals in 56 manufacturing facilities in 10 countries around the world. More information about the Company is available at our website, www.bemis.com. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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