Hagge continued, “The U.S. Dollar continued to be strong relative to numerous other currencies and this had a significant negative impact on our results. We estimate that the negative impact of changes in currency exchange rates accounted for approximately 8% of the decline in sales and approximately 7% of the decline in earnings in the quarter. Included in our results for the first time were the results of Aptar Stelmi, our most recent acquisition. Aptar Stelmi contributed approximately $25 million to our sales but the required purchase accounting adjustments had a negative impact on earnings. Third quarter earnings per share of $0.62 included a negative impact of $0.02 per share from the Aptar Stelmi results which included the acquisition accounting adjustments. This compared to $0.72 per share reported a year ago. If today’s exchange rates were in place a year ago, we estimate that the prior year’s third quarter earnings per share would have been approximately $0.67 per share. In addition, prior year results were positively impacted by approximately $0.02 per share related to a lower effective tax rate.”
For the nine months ended September 30, 2012, reported sales declined 2% to $1.76 billion from $1.79 billion a year ago. Changes in currency exchange rates negatively impacted sales by approximately 6%. Recently acquired Aptar Stelmi contributed approximately $25.3 million or 1% to the year-to-date sales growth.
|Nine Months Year-to-Date Segment Sales Analysis|
|(Change Over Prior Year)|
|Beauty +||Food +||Total|
|Total Reported Growth||-5%||3%||8%||-2%|
Hagge commented on the Company’s year-to-date performance, “In spite of challenging conditions through the first nine months, we’ve been able to grow core sales by 3% and this is on top of strong sales growth last year. Sales growth in the beauty market has been negatively impacted by the recent softness attributable to economic uncertainties, principally in Europe. However, global beauty sales are above last year’s level for the nine months due to a good start to the year and continued strong growth in Latin America. Also driving our sales growth was strong demand for our innovative beverage closures as well as increased demand from the personal care and prescription drug markets over the prior year.”