Bemis Company, Inc.
) recently announced the realignment of its reporting structure
to three segments - U.S. Packaging, Global Packaging and Pressure
Sensitive Materials. The new reporting system will be effective
after the company reports the fourth quarter results, which is
scheduled for release on January 31.
The company earlier had two business segments -- Flexible
Packaging and Pressure Sensitive Materials. In the new system,
the Flexible Packaging business segment has been segregated to
U.S. Packaging and Global Packaging business segments, while the
Pressure Sensitive Materials segment remains unchanged.
The U.S. Packaging segment represents all food, consumer, and
industrial products packaging-related manufacturing operations
located in the United States. The Global Packaging business
segment includes all Bemis' packaging-related manufacturing
operations located outside of the United States and also includes
its global medical device and pharmaceutical packaging
The Pressure Sensitive Materials segment manufactures pressure
sensitive adhesive coated paper and film substrates sold to the
label and graphic markets. The segment also makes pressure
sensitive materials for varied industrial applications in the
electronics, automotive, construction, medical, and
The company stated that the changes will have no effect on the
historical consolidated results of operations. The prior-period
segment results have been conformed to the new business segment
Bemis Company's third-quarter earnings per share (EPS)
increased 7% to 60 cents, and were ahead of the Zacks Consensus
Estimate. However, net sales declined 5% year over year to $1.29
billion, which fell short of the Zacks Consensus Estimate.
Decline in overall unit volumes affected the company's financial
performance during the quarter.
As per the previously issued information consolidated in
the new format, net sales for the U.S. Packaging segment were
$774.9 million. Adjusted operating profit for the segment
was $107.5 million with operating margin of 13.9%.
Net sales for the Global Packaging segment were $377.5
million. The segment's adjusted operating profit was $25.3
million with operating margin at 6.7%. Net sales from the
Pressure Sensitive Materials segment totaled $135.4 million.
Segment operating profit was $7.7 million with operating margin
Weak volume, cautious consumer spending environment, sluggish
European economic outlook and rising food costs remain major
causes of concern. However, savings from the Bemis cost reduction
program due to the closure of unproductive facilities will help
offset these pressures. Bemis currently retains a Zacks Rank #3
Neenah, Wisconsin-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 employs more than 20,000 individuals in 80 manufacturing
facilities across the globe. Bemis competes with the likes of
Sealed Air Corporation
Avery Dennison Corporation
AVERY DENNISON (AVY): Free Stock Analysis
BEMIS (BMS): Free Stock Analysis Report
SEALED AIR CORP (SEE): Free Stock Analysis
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