Bemis Reports Strong Third Quarter 2018 Earnings

Bemis Company, Inc. reported financial results for its third quarter ended Sept. 30, 2018. The company reported net sales of $1,026 billion during the quarter, led by its US Packaging division, and a net profit of $146 million.
 
“We delivered strong adjusted earnings per share during the third quarter. We continue to make progress through Agility to fix, strengthen, and grow our business,” said William F. Austen, Bemis Company’s president and CEO. “All of our segments performed in-line with our expectations, overcoming incremental headwinds from currency and freight costs.
 
“Through three quarters of 2018, we have increased adjusted earnings per share by 18% over the prior year and implemented numerous operational, commercial, and administrative improvements through Agility,” added Austen. “Our teams across the globe are committed to improving our business for the long-term.”
 
On Aug. 6, 2018, Bemis announced a plan for an all-stock combination with Amcor to create the global leader in consumer packaging with the footprint, scale, talent, and capabilities to better serve customers around the world, drive significant value for shareholders, create enhanced opportunities for employees, and deliver the most sustainable innovations for the environment.
 
“We believe combining these two organizations will drive significant value for shareholders, employees, and customers over the long-term,” Austen said. “Bemis shareholders will have the opportunity to benefit from the expected increased dividend, which nearly doubles from Bemis’ current dividend, and the value creation driven from not only the $180 million of cost synergies identified as part of the transaction but also additional potential revenue synergies. We remain on track for the transaction to close in the first quarter of 2019, after regulatory and shareholder approvals.”
 
US Packaging net sales of $688.4 million for the third quarter of 2018 represented an increase of 2.4% compared to the same period of 2017. US Packaging operating profit was $93.4 million in the third quarter of 2018, or 13.6% of net sales, compared to $99.6 million, or 14.8% of net sales, in 2017.
 
Latin America Packaging net sales of $148.3 million for the third quarter of 2018 represented a decrease of 19.3% compared to the same period of 2017. Latin America Packaging operating profit increased to $8 million in the third quarter of 2018, or 5.4% of net sales, compared to $7.3 million, or 4% of net sales, in 2017.
 
Rest of World Packaging net sales of $189.7 million for the third quarter of 2018 represented an increase of 6% compared to the same period of 2017. Operating profit increased to $22.2 million in the third quarter of 2018, or 11.7% of net sales, compared to $17.3 million, or 9.7% of net sales, in 2017.
 
Cash flow from operations for the three months ended September 30, 2018, was $142.3 million, compared to $99 million in the prior year. Total company net debt to adjusted EBITDA was 2.4 times at Sept. 30, 2018.