Hagge continued, “Our earnings, excluding any effects of our European Operations Optimization plan, improved due to the contribution from the Aptar Stelmi acquisition and the strength of our Pharma and Food + Beverage segments.”
AptarGroup reported earnings per share of $1.31 compared to $1.24 a year ago. Charges related to the Company’s EOO plan had a negative effect on earnings per share in 2013 of approximately $0.09, and prior year earnings per share included the negative effect of approximately $0.06 related to costs associated with the Stelmi acquisition. Year-to-date 2013 earnings per share, excluding the charges related to the EOO plan, were $1.40 and this compared to $1.30 per share for the same period a year ago when costs associated with the Stelmi acquisition are excluded from the prior year results.
GEOGRAPHIC EXPANSION PLANS
AptarGroup announced plans to increase the capacity of its Aptar Stelmi business with a $26 million investment for expanded facilities, new equipment and upgraded technology over the next year. Aptar Stelmi, which was acquired by AptarGroup in July of 2012, is a European-based supplier of elastomer primary packaging components to the injectable drug delivery industry. Aptar Stelmi’s products include syringe plungers, vial stoppers, and needle shields. Hagge stated, “Aptar Stelmi is benefiting from the growth in the injectable drug delivery industry and the current production facilities are nearly at full capacity. While our long-term objective is to establish a production facility closer to growing markets outside of Europe, our initial investment in capacity expansion will be at Aptar Stelmi’s existing facilities in Europe. This will allow us to better serve our existing customers and integrate the new technology before we expand globally.”After decades of serving customers in the Andean region by importing products from various facilities, AptarGroup is establishing a production facility in Colombia which is intended to be operational by mid-2014. In addition to regional customers, several of Aptar’s multinational customers have operations in the region. “We have been selling into the Andean region for some time and we want to better serve our customers with a local facility,” said Hagge. “Our initial capital investment in this operation is expected to be approximately $5 million over the next 18 months. We are optimistic about the growth potential for each of our segments in this region.”