Bemis Company Reports Third Quarter 2008 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 $0.44 per share for the third quarter ended September 30, 2008, a 10.0 percent increase compared to $0.40 per share for the third 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 a record $984.3 million for the third quarter of 2008, an 8.7 percent increase from $905.7 million for the same period of 2007. Currency benefits contributed 2.9 percent to net sales for the quarter. "We enjoyed strong sales growth this quarter in the key markets where we have been investing," said Henry Theisen, Bemis Company's President and Chief Executive Officer. "We have also responded aggressively to the escalating input costs this year. In this challenging economic environment, attention to cost management and customer service is imperative. Our business teams are successfully navigating the current global market conditions and are prepared to meet the challenges ahead." BUSINESS SEGMENTS Flexible Packaging Flexible packaging, which represented about 84 percent of total Bemis net sales during the quarter, reported net sales of $826.4 million in the third quarter, a 10.9 percent increase compared to net sales of $745.4 million for the third quarter of 2007. Currency related sales growth totaled 2.8 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 third quarter of 2008 was $82.4 million, or 10.0 percent of net sales. Segment operating profit for the third quarter of 2007 was $81.6 million, or 10.9 percent of net sales. Currency benefits added $1.5 million to operating profit in the third quarter of 2008. This quarter's operating profit reflects the impact of higher input costs incurred in 2008. Commenting on the flexible packaging segment results, Theisen said, "Healthy sales growth in our flexible packaging segment was driven by a combination of volume growth and price increases across the majority of our end markets. We recorded double-digit sales growth in nearly 60 percent of our markets, with sales declines limited to pet products, overwrap for bottled water, and confectionery and snack markets. Performance in our medical device packaging operations has improved after last year's disruption from the start-up of new equipment and facilities. Our European teams continue to deliver improved operating results as they reap the benefits of customer acceptance of new product offerings and implement a World Class Manufacturing program. In this volatile global economic environment, we are aggressively responding to market conditions and will continue to work diligently to maintain our sales momentum and protect our operating profit." Pressure Sensitive Materials Net sales from the pressure sensitive materials business segment for the third quarter of 2008 were $157.8 million, a 1.5 percent decrease from net sales of $160.2 million in the third quarter of 2007. Currency related sales growth totaled 3.0 percent. Segment operating profit for the third quarter of 2008 was $9.0 million, or 5.7 percent of net sales, compared to the third quarter of 2007 when segment operating profit was $9.1 million, or 5.7 percent of net sales. Currency benefits added $0.5 million to operating profit in the third quarter of 2008. "Our pressure sensitive materials business is reflecting the impact of weak economic conditions in both 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. and Europe," said Theisen. "In this environment, our teams have successfully maintained profit levels by focusing on cost management and adjusting selling prices to reflect raw material cost increases." Other Costs (Income), Net For the third quarter of 2008, other costs and income included $9.2 million of financial income compared to $7.2 million for the third 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 32.5 percent at September 30, 2008, compared to 32.9 percent at December 31, 2007. Total debt as of September 30, 2008 was $826.3 million, a decrease of $17.0 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 $78.6 million in the third quarter of 2008. Increased working capital levels primarily reflect higher raw material costs and selling prices. We expect working capital levels to be reduced during the fourth quarter. 2008 Earnings Outlook "The environment for input costs has changed dramatically over the past three months, but economic conditions continue to be challenging," said Theisen. "While the majority of our products are sold into historically defensive markets for food and consumer products, even those markets can be impacted by changes in consumer buying patterns during difficult economic times. While we are pleased with our current business backlog, we are also mindful of these risks and will carefully manage our resources during this period of uncertainty." Management expects fourth 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 $0.40 to $0.44, reflecting the ongoing benefits of successful cost management and productivity improvement programs. The capital expenditures forecast continues to be in the $125 million range for 2008. 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, the impact of weather conditions on consumer demand, changes in customer order patterns, the results of competitive bid processes, a failure in our information technology infrastructure or applications, foreign currency fluctuations, increased working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , and availability of bank financing and related costs. 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. About The Company Bemis Company, Inc. will webcast an investor telephone conference regarding its third 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 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 15,500 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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