AptarGroup Reports Third Quarter Results; Announces European Operations Optimization Plan

AptarGroup, Inc. (NYSE:ATR) today reported third quarter results and announced a plan to optimize certain European operations.

Third Quarter 2012 Summary
  • Reported sales declined 2% (core sales increased 2% excluding currency effects and acquisition)
  • Certain markets in Europe continued to be soft; Latin America and Asia remained strong
  • Aptar Stelmi added $25 million in reported sales
  • Changes in currency exchange rates negatively impacted sales by approximately 8% and earnings by approximately 7%
  • Earnings per share of $0.62 included a negative impact of $0.02 per share related to Aptar Stelmi’s results that included acquisition accounting effects
  • European operations optimization plan announced

THIRD QUARTER RESULTS

For the quarter ended September 30, 2012, reported sales declined 2% to $589.6 million from $601.2 million a year ago. Changes in currency exchange rates negatively impacted sales by approximately 8%. Recently acquired Aptar Stelmi contributed approximately $25.3 million or 4% to the quarterly sales growth.
 
Third Quarter Segment Sales Analysis
(Change Over Prior Year)
         
Beauty + Food + Total
Home   Pharma   Beverage     AptarGroup
Core Sales 1% -2% 16% 2%
Currency Effects -8% -9% -4% -8%
Acquisitions     18%         4%
Total Reported Growth -7%   7%   12%     -2%
 

Commenting on the quarter, Stephen Hagge, President and CEO, said, “The diversity of our business continued to help us achieve growth in a difficult environment. As we expected, it was a challenging quarter compared to the prior year, particularly in the beauty, food and consumer health care markets. Certain customers in the European beauty market remained cautious but this weakness was offset by increased demand from the personal care market. Global sales to the beverage market continued to be strong and this more than offset softer food volumes, mainly in the U.S. Also, demand from the consumer health care market, particularly in Russia and Eastern Europe, declined from last year’s very strong levels. However, our businesses in Latin America and Asia continued to perform quite well.”

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