Bemis Company Reports 2009 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 $0.36 per share for the first quarter ended March 31, 2009, compared with $0.41 per share for the same quarter of 2008. Results for the current quarter were negatively impacted by severance charges associated with workforce reductions and the implementation of Statement of Financial Accounting Standards No. 141 (revised 2007), Business Combinations (FAS 141(R)). Excluding the effect of the items mentioned above, which are set forth in the attached schedule, "Reconciliation of Non-GAAP Data", 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 would have been $0.43 for the first quarter of 2009 compared to $0.41 per share for the first quarter of 2008. 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 were $843.4 million for the first quarter of 2009, an 11.0 percent decrease from $947.3 million for the same period of 2008. Currency effects reduced net sales by 8.3 percent compared to the first quarter of 2008. The remaining 2.7 percent decrease in net sales reflects lower unit volume partially offset by a favorable price and mix impact compared to the first quarter of 2008. "I am pleased to report strong first quarter performance results in such a challenging market environment," said Henry Theisen, Bemis Company's President and Chief Executive Officer. "Our manufacturing agility along with our disciplined cost management strategies have served us well in this global recession. We are controlling expenses, working capital, and manufacturing waste while maintaining our focus on customer service and quality. Our business teams are facing an environment of broad economic and market uncertainty in 2009, and we are meeting each challenge with a strategy that we expect to deliver long-term value to Bemis Company." New Accounting Pronouncements FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). Staff Position No. EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (FSP FSP - File Service Protocol EITF 03-6-1) The calculation of basic and diluted earnings per share for both of the years presented has been modified to reflect FASB Staff Position No. EITF 03-6-1, effective January 1, 2009. This FASB Staff Position further interprets and clarifies the computation of shares outstanding for share-based awards. The impact of this modification is a $0.01 per share decrease in basic and diluted earnings per share for each of the periods presented. The 2008 earnings per share have been recast to reflect the impact of this new accounting guidance. Statement of Financial Accounting Standard No. 141 (revised 2007), Business Combinations (FAS 141(R)) First quarter 2009 diluted earnings per share included a $0.06 per share charge from the implementation of FAS 141(R). Effective on a prospective basis for Bemis' fiscal years beginning January 1, 2009, this new accounting standard requires that acquisition costs associated with a possible business combination must be expensed when incurred. These costs are principally accounting, legal, and other professional fees associated with Bemis' due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. on a portion of the packaging business belonging to Rio Tinto Rio Tinto may refer to:
Statement of Financial Accounting Standard No. 160, Noncontrolling Interest in Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge (FAS 160), an amendment to ARB No. 51 The presentation of minority interest has been repositioned in accordance with FAS 160. In the income statement, minority interest is presented on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , following a subtotal subtotal /sub·to·tal/ (sub-to´t'l) less than, but often almost, complete. entitled "Net income before noncontrolling interests". In the balance sheet, minority interest is now referred to as "Noncontrolling interest" and is now presented as a component of "Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. ". BUSINESS SEGMENTS Flexible Packaging Bemis' flexible packaging business segment, which represented about 85 percent of total Company net sales this quarter, reported net sales of $715.2 million in the first quarter. This represents an 8.5 percent decrease compared to net sales of $781.6 million for the first quarter of 2008. Currency effects reduced net sales by 8.7 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 2009 was $91.4 million, or 12.8 percent of net sales. Results for the quarter were negatively impacted by severance charges associated with workforce reduction events intended to adjust workforce levels to better match market demands for certain product lines. Excluding the impact of these severance costs, segment operating profit for the first quarter of 2009 would have been $92.5 million, or 12.9 percent of net sales. (See attached schedule: "Reconciliation of Non-GAAP Data".) Segment operating profit for the first quarter of 2008 was $78.6 million, or 10.1 percent of net sales. The net effect of currency translation and foreign exchange losses decreased operating profit in the first quarter of 2009 by $7.1 million compared to the same quarter of 2008. Higher operating profit reflects the impact of both lower raw material costs in 2009 and the benefit of cost improvement programs. Commenting on the flexible packaging segment results, Theisen said, "I am pleased to report that our flexible packaging business recorded record first quarter operating profit. Our flexible packaging business segment is benefiting from a temporary raw material cost advantage which is expected to moderate during the second quarter as customer contract mechanisms adjust to reflect current raw material costs. In addition, our aggressive efforts to manage production costs will continue to benefit Bemis going forward. While we have experienced a slower business environment across many of our flexible packaging markets, we are pleased to report continued growth in the areas of our business where we have been investing, including packaging for processed meat and cheese, dairy and liquids, and medical devices. Our South American operations 'South American' operation Surgical oncology A radical operation for 'frozen' pelvis, which consists of en bloc resection of the uterus and rectum. See Frozen pelvis. Cf 'All-American' and 'North American' operations. are achieving healthy sales growth, partially offsetting the negative impact of local currency fluctuations. Our European operations continue to improve. Globally, our operations are prudently managing costs to accommodate inconsistent market demand. Overall, this has been a strong quarter for our flexible packaging operations in the face of unusual market challenges." Pressure Sensitive Materials Net sales from the pressure sensitive materials business segment for the first quarter of 2009 were $128.2 million compared to $165.7 million in the first quarter of 2008. Currency effects reduced net sales by 6.5 percent compared to the first quarter of 2008. This segment reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the first quarter of 2009 of $1.9 million, compared to the first quarter of 2008 when segment operating profit was $11.9 million, or 7.2 percent of net sales. Lower volume in each of the product lines in this business segment substantially reduced operating profit for the first quarter. Results for the first quarter of 2009 were also negatively impacted by severance charges associated with workforce reduction events intended to adjust workforce levels to better match current market demands. Excluding the impact of these severance costs, segment operating profit for the first quarter of 2009 would have been $0.7 million, or 0.5 percent of net sales. (See attached schedule: "Reconciliation of Non-GAAP Data".) The net effect of currency translation and foreign exchange losses decreased operating profit in the first quarter of 2009 by $0.4 million compared to the same quarter of 2008. "Consistent with our forecast at the beginning of this year, performance in our pressure sensitive materials business is reflecting the weakness in global economic conditions," said Theisen. "Our customers in this segment operate in the advertising, automotive, housing, and consumer product markets, all of which have experienced a dramatic decline in product demand in this economic environment. Our focus for 2009 is to manage costs aggressively to restore profitability as soon as possible and to meet production needs." Other Costs (Income), Net For the first quarter of 2009, other costs and income included $4.7 million of financial income, a decrease of $3.0 million compared to $7.7 million for the first quarter of 2008. This decrease reflects lower interest income from cash balances invested outside of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in 2009. Other costs and income also included $9.1 million of professional fees associated with a possible business combination. These costs are expensed in accordance with FAS 141(R) referred to above. 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 29.1 percent at March 31, 2009, compared to 31.5 percent at December 31, 2008. Total stockholders' equity as of December 31, 2008, has been recast in accordance with FAS 160 as noted above. Total debt as of March 31, 2009 was $617.4 million, a decrease of $69.2 million from the balance of $686.6 million at December 31, 2008. Strong 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 of $148.3 million for the first quarter of 2009 benefited from our concerted efforts to reduce working capital by a total of $52.8 million. Liquidity As of March 31, 2009, Bemis had available from its banks a total of $625.0 million of revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities. These credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities are used principally as back-up for the Company's commercial paper program. As of March 31, 2009, there was $282.8 million of debt outstanding supported by these credit facilities, leaving $342.2 million of available credit. Of this amount, credit facilities accounting for $200.0 million in available credit expire on April 28, 2009 and will not be renewed. Bemis continues to maintain the $425 million credit facility that expires in 2013. Cash flows from operating activities are expected to continue to provide sufficient liquidity to meet future cash obligations. Dividend Increase During the first quarter, the board of directors approved a 2.3 percent increase in the quarterly dividend, from $0.22 per share to $0.225 per share. 2009 Earnings Outlook Quarterly and annual guidance excludes the impact of FAS 141(R) and severance charges incurred and yet to be incurred in 2009. Management expects second quarter 2009 diluted earnings per share to be in a range of $0.35 to $0.43 per share. Guidance for the full year 2009 remains unchanged at $1.50 to $1.70 per share. Management continues to expect capital expenditures to be in the $100 million to $110 million range for 2009. Commenting on the outlook for the year, Theisen noted that the market conditions remain difficult to predict. "While the results of the first quarter are encouraging, we continue to face challenging business conditions in both business segments. The range of our quarterly and full year guidance reflects the uncertainty that exists in the current market environment. Our business teams continue to focus on maximizing performance results for 2009 and future periods," he said. Presentation of Non-GAAP Information Some of the information presented in this press release reflects adjustments to "As reported" results to exclude certain amounts related to the Company's workforce reductions and the implementation of FAS 141(R). This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (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. A reconciliation of the GAAP amounts to the Non-GAAP amounts is included with this press release. Forward Looking Statements Effective on a prospective basis for Bemis' fiscal years beginning 2009, Statement of Financial Accounting No. 141 (revised 2007), Business Combinations (FAS 141(R)), establishes new accounting principles governing accounting for business combinations, including changes in the accounting treatment of acquisition related costs. Unless otherwise expressly stated, Bemis' quarterly and full-year guidance does not and will not include any estimated impact of such costs to be incurred in the future. These costs are not estimable es·ti·ma·ble adj. 1. Possible to estimate: estimable assets; an estimable distance. 2. Deserving of esteem; admirable: an estimable young professor. due to the uncertainty regarding the duration and extent of efforts necessary in the future. 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, costs associated with the pursuit of business combinations (pursuant to FAS No. 141(R)), a failure in our information technology infrastructure or applications, foreign currency fluctuations, changes in working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , changes in government regulatory requirements, 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 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, 2008. About The Company Bemis Company, Inc. will webcast an investor telephone conference regarding its first quarter 2009 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 2008 net sales of $3.8 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 lam·i·nate v. lam·i·nat·ed, lam·i·nat·ing, lam·i·nates v.tr. 1. To beat or compress into a thin plate or sheet. 2. To divide into thin layers. 3. , printing and converting. The Company's pressure sensitive materials business specializes in adhesive technologies. Headquartered in Neenah, Wisconsin Neenah is a city on Lake Winnebago in Winnebago County, Wisconsin, United States. The population was 24,507 at the 2000 census. The city is surrounded by, but is politically independent of, the Town of Neenah. , Bemis employs about 15,200 individuals in 57 manufacturing facilities in 11 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] [TABLE OMITTED] |
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