Bemis Company, Inc. (NYSE-BMS) today reported second quarter 2013 diluted earnings of $0.51 per share on net sales of $1.3 billion. Excluding the effect of facility consolidation costs and transaction-related gains and charges detailed in the attached schedule, “Reconciliation of Non-GAAP Earnings Per Share”, adjusted diluted earnings per share would have increased to $0.61 for the second quarter of 2013 compared to $0.54 for the second quarter of 2012. Excluding the impact of currency, net sales for the quarter decreased by 0.7 percent compared to the second quarter of 2012.
“This quarter, we closed the last of the nine facilities in our facility consolidation program, achieved our highest gross margin since 2009, and reduced working capital levels,” said Henry Theisen, Bemis Company's President and Chief Executive Officer. “Our focused efforts to improve our long term sales mix and return on invested capital trends have been effective. Stronger unit volumes in high barrier liquid packaging reflect the trend toward flexible pouches in the United States. We continue to make strategic growth investments in both Latin America and China which we expect to deliver sales growth in our Global Packaging segment beginning in 2014. We achieved double digit growth in adjusted earnings per share this quarter in spite of Brazilian currency headwinds and continued weakness in our European pressure sensitive graphic products market.”
HIGHLIGHTS OF THE SECOND QUARTER OF 2013:
SALE OF CLYSAR THIN GAUGE SHRINK FILM PLANT
- Adjusted diluted earnings per share increased 13.0 percent to $0.61, compared to $0.54 in the second quarter of 2012, in line with management's guidance for the quarter.
- Gross profit as a percent of net sales improved to 19.4 percent compared to 17.8 percent in the second quarter of 2012.
- Facility consolidation charges totaled $20.9 million and the final plant closing was completed in May 2013
- The Clysar thin gauge shrink film plant was sold for a pre-tax gain of $5.9 million and net cash proceeds of $30.4 million.
- Management established adjusted diluted earnings guidance for the third quarter of 2013 in the range of $0.57 to $0.63 per share, and updated total year 2013 earnings guidance to the range of $2.30 to $2.40 per share.
On May 29, 2013, Bemis completed the sale of its Clysar thin gauge shrink film plant. Annual net sales of Clysar films were approximately $70 million and were sold primarily through distributors. Net proceeds of the transaction totaled $30.4 million. A $5.9 million pre-tax gain on the sale was recorded as part of other non-operating income during the second quarter of 2013 and was excluded from the calculation of adjusted diluted earnings per share.