AptarGroup reported earnings per share of $1.98 compared to $1.86 a year ago. Charges related to the Company’s European restructuring plan had a negative effect on earnings per share in 2013 of approximately $0.12. Year-to-date 2013 earnings per share, excluding the charges related to the restructuring plan, were $2.10. Prior year comparable earnings per share were $1.95 when the negative impact from costs and non-recurring purchase accounting effects relating to the Stelmi acquisition were excluded (approximately $0.09 per share).
EUROPEAN RESTRUCTURING PLAN UPDATE
In the third quarter, AptarGroup recognized approximately $2.7 million of expense related to the plan, of which $0.5 million were non-cash expenses. For the year-to-date, AptarGroup recognized approximately $10.3 million of expense related to the plan, of which $1.5 million were non-cash expenses. Using current exchange rates, AptarGroup expects to recognize approximately $3 million in additional costs in the fourth quarter of 2013. Savings from the plan are expected to be approximately $12 million on an annualized basis.
OUTLOOKCommenting on AptarGroup’s outlook, Hagge said, “As we look toward the fourth quarter, we expect core sales of each segment to grow over the prior year; however, our earnings will be negatively impacted by the continuing soft conditions in the U.S. markets served by our Beauty + Home segment. There is also some pending French tax regulation that, if enacted before the end of the year, could result in a full-year retroactive tax adjustment that could negatively impact our fourth quarter results by as much as $0.09 per share. Our current guidance does not reflect this pending tax regulation and is based on an effective tax rate of approximately 30% which is comparable to last year’s fourth quarter effective rate.” AptarGroup expects earnings per share for the fourth quarter, before costs associated with the European restructuring plan, to be in the range of $0.62 to $0.67 per share compared to $0.57 per share reported in the prior year before costs associated with the restructuring plan.