Bemis Company, Inc.
) reported first-quarter 2013 adjusted earnings of 53 cents per
share, up 8% from 49 cents earned in the year-ago quarter. The
result beat the Zacks Consensus Estimate by a penny and was at
the midpoint of management's guidance of 50 cents to 56 cents per
share. Including facility consolidation and acquisition-related
integration charges, earnings per share in the reported quarter
stood at 47 cents, up 12% from 42 cents in the year-ago quarter.
BEMIS (BMS): Free Stock Analysis Report
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Net sales slid 4% year over year to $1.255 billion, ahead of the
Zacks Consensus Estimate of $1.303 billion. Excluding the impact
of currency, net sales for the quarter declined 1.8% year over
Cost of products sold decreased 6% to $1.013 billion in the
quarter. Gross profit increased 5% to $242 million. Gross margin
expanded 160 basis points to 19.3% in the quarter. Selling,
general and administrative expenses inched up 1% to $131 million.
Adjusted operating income jumped 10% to $100 million. Operating
margin increased 100 basis points to 8% in the quarter.
Net sales from the U.S. Packaging segment amounted to $746
million, down 2.5% year over year. Lower sales volumes of
packaging for certain non-barrier packaging, somewhat offset by
increased unit sales volumes of packaging for products such as
refrigerated foods, led to the annual decline. However, adjusted
segment operating profit increased 6.5% to $95 million from $90
million reflecting cost savings associated with facility
consolidation activities completed in 2012.
Net sales from the Global Packaging segment declined 7% to $368
million as negative impact of currency translation, lower volumes
substantially offset the benefits from higher selling prices and
acquisitions. Adjusted segment operating profit declined 11% to
$25 million due to negative impact of et currency translation.
Net sales from the Pressure Sensitive Materials segment totaled
$140 million, a decline of 3% from the year-ago quarter. Segment
operating profit was $7.7 million, down 21% from $9.7 million
reported in the year-ago quarter. Higher volumes of label
products offset lower unit volumes for both graphic and technical
products, leading to a less favorable sales mix and lower
operating profits during the quarter.
As of Mar 31, 2013, Bemis had cash and cash equivalents of $153
million, up from $114 million as of Dec 31, 2012. Total debt of
the company increased to $1.55 billion as of Mar 31, 2013 from
$1.43 billion as of Dec 31, 2012. The debt-to-capitalization
ratio increased to 48.7% as of Mar 31, 2013 from 46.5% as of Dec
Total cash flow from operating activities for the quarter was
$8.4 million compared with $49 million in the prior-year quarter.
During the quarter, Bemis repurchased one million shares for $36
million. Bemis also increased its quarterly cash dividend by 4%,
marking its 30th consecutive annual increase.
Management expects volume levels in 2013 to be consistent with
2012, along with a generally stable raw material cost
environment. Management expects adjusted EPS in the range of 57
cents to 63 cents for the second quarter of 2013. For 2013, EPS
is projected to range between $2.30 and $2.45.
The incremental savings of the facility consolidation activities
are expected to be around $37 million in 2013. The annualized
savings rate of $50 million is expected to be achieved during the
second quarter of 2013. Capital expenditures are estimated
at around $175 million in 2013 while cash flow from operations is
expected to exceed $430 million.
Weak volume, cautious consumer spending environment, sluggish
European economic outlook and rising food costs remain major
concerns. However, savings from the Bemis cost reduction program
due to the closure of unproductive facilities will help offset
Neenah, Wis.-based Bemis Company is a global manufacturer of
flexible packaging products and pressure sensitive materials sold
primarily to the food industry. The company also sells its
products to other customers in the chemical, agri-business,
medical, pharmaceutical, personal care, electronics, automotive,
construction, and graphic industries. Bemis currently retains a
Zacks Rank #3 (Hold).
Among the peers of Bemis Company,
Packaging Corporation of America
) posted first-quarter earnings per share of 62 cents, up 48%
from 42 cents in the year-earlier quarter and beat the Zacks
Consensus Estimate by 6 cents.
Graphic Packaging Holding Company
) reported earnings per share of 10 cents, a 67% year-over-year
increase and ahead of the Zacks Consensus Estimate of 8 cents. On
the other hand,
Sonoco Products Co.'s
) first-quarter 2013 adjusted earnings of 50 cents per share
declined 4% from the prior-year quarter's earnings of 52 cents
per share, missing the Zacks Consensus Estimate of 53 cents.