Commenting on the quarter, Peter Pfeiffer, President and CEO, said, “I am pleased to report that we achieved our best quarterly results ever. Each segment reported strong top line growth and our consolidated sales before currency effects increased 8%. Particular strength was noted in the fragrance/cosmetic, consumer health care, food and beverage markets. While core sales were strong, currency effects also contributed 10% to our top line growth in the quarter.”
Pfeiffer continued, “Looking at profits, we achieved record quarterly earnings per share of $.74 which was an increase of 10% over the prior year. Segment income increased at both our Beauty + Home and Pharma segments, while our Food + Beverage segment’s income declined compared to the prior year primarily due to the usual delay in passing along resin cost increases and new structure costs associated with the start-up of this new segment. Our Beauty + Home segment profit margins were also negatively affected by the timing of passing along resin cost increases as well as higher professional fees compared to a year ago. Our Pharma segment reported record quarterly segment income that was driven by strong core sales growth. All things considered, this was another very good quarter in terms of profits. Consolidated operating income reached a record $80 million in the quarter.
Also in the quarter, we completed the purchase of a facility in North Carolina that will be dedicated to serving our Food + Beverage customers.”
YEAR-TO-DATE RESULTSPfeiffer stated, “Even though we were up against a difficult comparison to 2010’s record results, we reported very strong growth for the first half of this year. Our core sales increased 10% above prior year levels driven primarily by the strength from the fragrance/cosmetic, consumer health care, food and beverage markets.” Year-to-date reported sales increased 16% to a record $1.19 billion from $1.03 billion a year ago. Changes in exchange rates contributed 6% of the sales growth. Operating income increased to $150 million, up 11% from $135.7 million a year ago. Reported diluted earnings per share increased 12% to $1.37 per share compared to $1.22 per share a year ago.