CCL Industries Reports Record Quarterly Results

CCL Industries Inc. reported 2015 first quarter results. Sales for the first quarter of 2015 increased 15.8% to $705.9 million, compared to $609.7 million for the first quarter of 2014, with 5.5% organic growth, 4.3% positive currency translation impact and 6.0% from the seven acquisitions completed over the previous 14 months.
 
Operating income for the first quarter of 2015 was $117.1 million, an increase of 32.2% compared to $88.6 million for the comparable quarter of 2014. Excluding the impact of currency translation, operating income improved 28.3%.
 
Net earnings improved 29.5% to $68.1 million for the 2015 first quarter compared to $52.6 million for the 2014 first quarter. Basic and adjusted basic earnings per Class B share were a record $1.97 and $1.99, respectively, compared to basic and adjusted basic earnings per Class B share of $1.54 and $1.56 in the prior year first quarter.
 
“Performance for the first quarter of 2015 was stronger than expected, with all segments delivering improved sales and profitability resulting in record quarterly earnings per share,” said Geoffrey T. Martin, president and CEO. “The benefit from foreign currency translation totaled $0.08 per share with the stronger U.S. dollar somewhat offset by the weaker euro and real. Foreign currency transaction challenges continued in certain international markets but at reduced levels from the 2014 fourth quarter. Solid organic sales growth in all segments, including Avery, totaled 5.5% globally.
 
“We continued to execute our growth initiatives, acquiring pc/nametag and INT America as well as announcing a multi-million dollar greenfield expansion plan for CCL Design in Mexico this quarter and planning our first operation in Korea,” Martin added. “Our balance sheet remains in outstanding condition with the company’s leverage ratio coming in at 1.1 times EBITDA and undrawn credit facilities at $250 million, leaving considerable capacity to execute growth plans for 2015 and beyond.”