Diluted earnings per share for the first quarter of 2012 was $0.42 compared to $0.47 per share reported in the same quarter of 2011. Excluding the effect of acquisition-related integration costs and facility consolidation costs, as detailed in the attached schedule, “Reconciliation of Non-GAAP Data,” diluted earnings per share, as adjusted, would have been $0.49 for the first quarter of 2012.
During the fourth quarter of 2011, Bemis initiated a facility consolidation program to improve efficiencies and reduce fixed costs. As a part of this program, Bemis announced the planned closure of five facilities and the intent to move most of the production from these facilities to other Bemis operations. These facility consolidation activities are expected to save approximately $40 million in annualized costs beginning in 2013.
Highlights of the facility consolidation program:
- Total facility consolidation program cost is expected to be $83 million
- $38.4 million expensed in 2011 ($26.3 million of employee costs; $12.1 million of fixed asset-related expenses)
- $8.3 million expensed in the first quarter of 2012 ($1.2 million of employee costs; $7.1 million of fixed asset-related expenses)
- Most of the remaining charges are expected to occur during 2012
- Total cash paid for the program is expected to be approximately $52 million
- $3.3 million paid in the fourth quarter of 2011
- $8.0 million paid in the first quarter of 2012
- $24 million expected to be paid during the remainder of 2012
- Remaining cash expenditures are expected to be paid in 2013