This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Bemis Company Reports Record Results For Third Quarter 2012

FACILITY CONSOLIDATIONBemis' facility consolidation program includes the closure of nine manufacturing locations and is designed to improve efficiencies and reduce fixed costs. As of September 30, 2012, four locations have been closed. The remaining consolidation activities are expected to be completed during the fourth quarter of 2012 and the first quarter of 2013. Once completed, this facility consolidation program is expected to save approximately $50 million in annualized costs.

Highlights of the facility consolidation program:

  • Total estimated program cost is expected to be $141 million
    • $38.4 million expensed in 2011
    • $8.3 million expensed in the first quarter of 2012
    • $19.7 million expensed in the second quarter of 2012
    • $21.4 million expensed in the third quarter of 2012 ($2.3 million of employee costs; $19.1 million of fixed asset-related expenses)
    • Approximately $29 million of charges are expected to occur during the fourth quarter of 2012, with about $25 million remaining to be expensed in early 2013.
  • Total cash paid for the program is expected to be approximately $94 million
    • $3.3 million paid in 2011
    • $8.0 million paid in the first quarter of 2012
    • $4.5 million paid in the second quarter of 2012
    • $11.2 million paid in the third quarter of 2012
    • Approximately $24 million expected to be paid during the remainder of 2012
    • Remaining cash expenditures of about $43 million are expected to be paid in 2013

FLEXIBLE PACKAGING BUSINESS SEGMENTNet sales of Bemis' flexible packaging business segment was $1.2 billion, a 5.2 percent decrease from the same period of 2011. The impact of currency translation reduced net sales by 4.7 percent compared to the previous year, primarily reflecting the weaker Brazilian currency. Acquisitions increased 2012 net sales by 1.3 percent. The remaining modest reduction in sales represents the negative impact of lower unit sales volumes partially offset by higher selling prices and improved sales mix.

Segment operating profit for the third quarter of 2012 was $110.3 million, or 9.6 percent of net sales, compared to $117.4 million, or 9.7 percent of net sales, for the same period of 2011. Facility consolidation program and acquisition-related integration costs negatively impacted results during each period. Excluding these costs, segment adjusted operating profit would have been $132.8 million, or 11.5 percent of net sales, for the third quarter of 2012 and $119.1 million, or 9.8 percent of net sales, for the third quarter of 2011. (See attached schedule: “Reconciliation of Non-GAAP Data.”) The effect of currency translation decreased operating profit in the third quarter of 2012 by $3.7 million compared to the same quarter of 2011.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs