Bemis Company, Inc. (NYSE:BMS) today reported quarterly diluted earnings of $0.42 per share for the first quarter ended March 31, 2012. Diluted earnings per share would have been $0.49 for the first quarter of 2012, excluding the effect of facility consolidation and acquisition-related integration charges detailed in the attached schedule, “Reconciliation of Non-GAAP Data.”
Highlights of the first quarter 2012:
- Net sales totaled $1.3 billion.
- Gross margin as a percentage of net sales increased to 17.7 percent, the highest quarterly rate since 2010.
- Adjusted diluted earnings was $0.49 per share, an increase of 4.3 percent from the first quarter of 2011 and at the upper end of management’s guidance of $0.43 to $0.49 per share.
- Facility consolidation charges totaled $8.3 million.
- Cash flow generated from operating activities totaled $48.8 million compared to a use of cash during the first quarter of 2011.
- Bemis’ quarterly dividend increased by 4.2 percent, from $0.24 per share to $0.25 per share.
- Management established earnings guidance for the second quarter of 2012 in the range of $0.51 to $0.57 per share, and confirmed total year 2012 earnings guidance in the range of $2.05 to $2.20 per share.
“I am pleased to report that operating performance is improving, cash flow is healthy, and our facility consolidation activities are progressing as planned,” said Henry Theisen, Bemis Company’s President and Chief Executive Officer. “Unit sales volumes continue to be soft, reflecting weaker consumer demand in light of current economic conditions. Our full year guidance assumes volume growth during the second half of 2012.”
CONSOLIDATED RESULTSTotal Bemis net sales for the first quarter of 2012 was $1.3 billion, a 1.5 percent decrease from the same period of 2011, reflecting the impact of lower unit volume in the flexible packaging business segment. Acquisitions completed during the second half of 2011 increased first quarter net sales by an estimated 1.6 percent. The impact of currency translation reduced net sales by 1.6 percent.