Bemis 3Q Profit Falls 19% On Charges; EPS Outlook Strong
DOW JONES NEWSWIRES
Bemis Co. (BMS) said its third-quarter profit fell a less-than-feared 19% amid
charges while the food-and-beverage packager saw improved operating performance
and higher margins.
The company also raised its full-year earnings forecast to $1.81 to $1.86 a
share from $1.68 to $1.75 a share as it projected a fourth-quarter profit of 40
cents to 45 cents a share. Analysts' average estimate was 34 cents, according to
a survey by Thomson Reuters.
Bemis said in July that it had benefited from lower raw-materials costs as
well as cost-cutting measures it had started in 2008. Packaging companies have
seen weakened demand as their customers cut production, though those that serve
the relatively stable food and beverage sectors have fared better.
Bemis reported third-quarter earnings of $35.8 million, or 33 cents a share,
down from $44.3 million, or 43 cents, a year earlier. The latest quarter
included a net 15 cents in charges from acquisitions.
Revenue fell 8.7% to $898.9 million.
Analysts polled by Thomson Reuters had most recently forecast earnings,
excluding items, of 39 cents a share on $909 million in sales.
Gross margin rose to 20% from 16.8%.
Sales for the company's flexible packaging segment, which makes up most of its
business, fell 7.5%, but profit climbed 24%.
Still pending is the $1.2 billion acquisition of Alcan Packaging Food
Americas, a unit of Rio Tinto PLC (RTP), that Bemis expects to significantly
expand its sales in the food and beverage industry.
Bemis shares closed at $25.75 Monday and weren't active premarket Tuesday. As
of Monday's close, they were up 8.7% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com
(END) Dow Jones Newswires
10-27-090839ET
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