Bemis 3Q Declines But Flexible Packaging Strong

NEENAH, Wis. (AP) — Bemis Co., which makes flexible packaging and pressure-sensitive materials, said Tuesday its third-quarter profit fell 19 percent as revenue declined, selling prices slipped and expenses increased.

But strength in the flexible packaging segment, especially in Europe, led the company to raise its full-year outlook.

Net income in the three months ended in September decreased to $35.8 million, or 33 cents per share, from $44.3 million, or 43 cents per share, in the year-earlier period.

Excluding one-time items, the company earned 48 cents per share in the latest quarter. Bemis booked a charge of 9 cents per share for its planned $1.2 billion purchase of Alcan Packaging Foods America.

Analysts polled by Thomson Reuters expected earnings per share of 39 cents, excluding items.

Sales slipped to $898.9 million from $984.3 million. Analysts expected revenue of $909 million.

In the flexible packaging segment, sales dipped 7.5 percent to $764.1 million, but CEO Henry Theisen said the unit showed resiliency.

"The strong performance this quarter illustrates the strength and resiliency of our flexible packaging business," CEO Henry Theisen said.

He also noted the company's European business posted double-digit margins for the first time due to a better sales mix and manufacturing efficiencies.

Bemis increased its guidance for the full year and predicted fourth-quarter results above analyst estimates.

Shares jumped $1.62, or 6.3 percent, to $27.37 in morning trading. The stock earlier traded as high as $27.68, eclipsing a previous 52-week high of $27.65 set in July.