Bemis Company Reports Third Quarter Results.MINNEAPOLIS--(BUSINESS WIRE)--Oct. 21, 1997--Bemis Company, Inc. (NYSE-BMS) today announced that third quarter net income rose 6% to $25.4 million or $0.47 per share compared with the year earlier $24.0 million or $0.45 per share. 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 rose 10% to $465.5 million. Excluding acquisitions and divestitures, net sales rose about 8%. For the first nine months of 1997, earnings were $1.36 per share compared to $1.33 per share in the first nine months of 1996 which included a $0.05 per share gain on the sale of a business. Net sales rose 17% to $1.42 billion and excluding acquisitions and divestitures were up about 9%. Profitability in the third quarter was negatively affected by several factors including a product transition in the coated and laminated laminated /lam·i·nat·ed/ (-nat?ed) having, composed of, or arranged in layers or laminae. laminated made up of laminae or thin layers. film business, continued integration costs associated with the Paramount Paramount (pâr`əmount'), city (1990 pop. 47,669), Los Angeles co., S Calif.; inc. 1957. Originally a dairy region, it has become highly industrialized since the 1950s. acquisition made earlier in the year, an unusually large amount of new equipment start-ups which resulted in higher than normal scrap levels in certain parts of the flexible packaging business, and lower profitability in the paper bag business resulting from the consolidation activities announced at the end of the second quarter. While strong order backlogs should contribute to solid revenue growth in the fourth quarter, some of these higher cost factors will continue to affect margins. Accordingly, it is expected that per share earnings will be roughly comparable to the strong fourth quarter of 1996. Within the flexible packaging segment, third quarter net sales in coated and laminated films excluding acquisitions rose 11%, with the strongest sales gains in new multi-layer films. The conversion to more sophisticated film constructions impacted margins, however, as the start-up Start-up The earliest stage of a new business venture. of several new film manufacturing lines resulted in higher than normal scrap rates. In the polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n packaging business, net sales in the third quarter excluding acquisitions rose 12%. Profitability was impacted by an unusually high level of new equipment start-up as well as continued plant reorganizations involving the Paramount facilities acquired in the first quarter. The paper bag business reported slightly higher revenues and weaker profit amidst a·midst prep. Variant of amid. [Middle English amiddes : amidde; see amid + -es, adverbial suffix; see -s3.] a continued difficult pricing environment. Reduced manufacturing volumes at the two plants which will be closed as part of the consolidation and costs of transferring equipment and training new employees at the remaining plants also impacted profitability. Operating results are expected to improve once the consolidation is completed in the first half of 1998. In the specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. coated and graphics businesses, net sales grew at a modest rate with good profitability. Both revenue and profit growth were affected by unfavorable currency translation for the pressure sensitive materials business which derives about 35% of its revenue from outside 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. . Commenting on the quarter's results, John H. Roe, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "While I am not pleased with the level of profitability we delivered in the quarter, sales volumes continued strong. The new equipment start-up and plant reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. issues we are facing are the result of our aggressive growth objectives. The transition to a new generation of technically superior barrier films in our coated and laminated business is a significant positive for Bemis Bemis may refer to:
Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future contributions they will make to the company's success. "Within flexible packaging, we continue to use our technology to offer our customers improved capabilities in lighter weight films. Our pressure sensitive business has opportunities to grow worldwide and we are aggressively pursuing them. Overall, the company is very healthy and we continue to implement the key elements of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth strategy." Information in this release concerning the fourth quarter, 1997 outlook is forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. . Investors are cautioned that such statements are only predictions and speak only as of the date of this release. Actual results may differ materially due to factors including, but not limited to, the company's ability to successfully integrate new technology and improve manufacturing efficiency, the response of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. in the market, the company's ability to successfully complete the integration of acquired operations, and other information contained in the company's reports filed with the Securities and Exchange Commission. 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
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands of dollars except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
-------------------------------------------
1997 1996 1997 1996
-------------------------------------------
Net sales $ 465,533 $423,089 $1,422,340 $1,220,545
Costs and expenses:
Cost of products sold 372,489 330,479 1,131,660 949,161
Selling, general and
administrative
expenses 43,519 45,716 145,217 139,233
Research and
development 2,537 3,772 9,253 10,233
Interest expense 4,903 3,705 14,175 9,938
Other (income) costs,
net (423) (223) (837) (5,018)
Minority interest in
net income 1,296 1,107 3,809 3,149
Income before income
taxes 41,212 38,533 119,063 113,849
Taxes based on income
- cash 15,152 14,250 43,779 41,316
Taxes based on income
- deferred 648 250 2,021 1,584
Net income $ 25,412 $ 24,033 $ 73,263 $ 70,949
Earnings per share of
common stock $ .47 $ .45 $ 1.36 $ 1.33
Cash dividends paid per
share of
common stock $ .20 $ .18 $ .60 $ .54
Average common shares and
common stock equivalents
outstanding 53,976 53,288 53,942 53,276
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in thousands of dollars)
(unaudited)
Sept. 30, Dec. 31,
ASSETS 1997 1996
---------------------
Cash $19,307 $10,223
Accounts receivable - net 229,518 216,740
Inventories 205,736 200,397
Prepaid expenses and deferred charges 46,653 39,561
---------------------
Total current assets 501,214 466,921
---------------------
Property and equipment, net 655,715 583,491
Excess of cost of investments in
subsidiaries over net assets
acquired 149,350 108,928
Other assets 13,153 9,455
-----------------------
Total 162,503 118,383
-----------------------
TOTAL ASSETS $1,319,432 $1,168,795
=======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $1,756 $1,706
Short-term borrowings 3,233 3,006
Accounts payable 193,777 164,638
Accrued salaries and wages 37,732 34,163
Accrued income and other taxes 14,604 10,932
---------------------
Total current liabilities 251,102 214,445
Long-term debt, less current portion 302,697 241,077
Deferred taxes 58,566 56,661
Other liabilities and deferred credits 57,792 57,726
---------------------
Total liabilities 670,157 569,909
---------------------
Minority interest 31,943 31,789
Stockholders' equity:
Common stock (58,643,557 and
57,897,316 shares ) 5,864 5,790
Capital in excess of par value 174,562 149,481
Retained income 602,489 561,049
Cumulative translation adjustment (6,042) 6,588
Treasury common stock (5,640,842
and 5,536,617 shares) (159,541) (155,811)
---------------------
Total stockholders' equity 617,332 567,097
---------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $1,319,432 $1,168,795
BEMIS COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands of dollars)
(unaudited)
Nine Months Ended
September 30,
---------------------
1997 1996
---------------------
Cash flows from operating activities
Net income $73,263 $70,949
Non-cash items:
Depreciation and amortization 60,727 51,464
Minority interest in net income 3,809 3,149
Deferred income taxes, non-current
portion 1,635 1,584
Loss on sale of property and
equipment 135 51
---------------------
Cash provided by operations 139,569 127,197
Changes in working capital, net of
effects of acquisitions
and dispositions (5,242) (36,186)
Net change in deferred charges and
credits (8,718) 5,307
---------------------
Net cash provided by operating activities 125,609 96,318
---------------------
Cash flows from investing activities
Additions to property and equipment (117,456) (76,459)
Business acquisitions (6,945) (62,914)
Business divestitures 27,984 12,752
Proceeds from sale of property and
equipment 1,762 1,535
Other (25) 12
---------------------
Net cash used in investing activities (94,680) (125,074)
---------------------
Cash flows from financing activities
Change in long-term debt excluding debt
assumed in
business acquisition 15,911 68,455
Change in short-term debt 525 409
Cash dividends paid (31,823) (28,405)
Subsidiary dividends to minority
stockholders (1,835) (1,841)
Common stock purchased for the treasury (3,730) (8,962)
Stock incentive programs and related tax
effects 52 115
---------------------
Net cash (used) provided by financing
activities (20,900) 29,771
---------------------
Effect of exchange rates on cash (945) (1,512)
---------------------
Net increase (decrease) in cash $9,084 ($497)
CONTACT: Bemis Company, Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. F. Kleiber, Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. 612/376-3030 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion