01.27.17
Bemis Company, Inc. reported financial results for its fourth quarter ending Dec. 31, 2016.
Cash flow from operations for the twelve months ended December 31, 2016 was $437.4 million, compared to $552.4 million in the prior year. Prior year cash flow reflects the initial benefits of programs implemented to drive improvements in working capital.
“We grew earnings by 8% on a currency neutral basis in 2016,” said William F. Austen, Bemis Company’s president and CEO. “We made progress as we continued to recapitalize our converting equipment and leverage our product technology globally. We completed the acquisition of SteriPack and also initiated a restructuring program in Latin America following the Emplal acquisition.
“As we begin 2017, our primary focus is on promoting the growth and success of our customers and on executing well – in our operations, in our strategic business projects, and in all areas of our business,” Austen added.
U.S. Packaging net sales of $632.0 million for the fourth quarter of 2016 represented a decrease of 3.6% compared to the same period of 2015. The decrease in net sales during the quarter was driven by mix of products sold.
U.S. Packaging net sales of $2,621.1 million for the full year 2016 represented a decrease of 4.6% compared to the same period of 2015. Compared to the prior year, unit volumes were up nearly 1%.
U.S. Packaging operating profit increased to $94.0 million in the fourth quarter of 2016, or 14.9% of net sales, compared to $93.5 million, or 14.3% of net sales, in 2015. U.S. Packaging operating profit increased to $400.0 million for the full year 2016, or 15.3% of net sales, compared to $391.8 million, or 14.3% of net sales, in 2015.
Global Packaging net sales for the fourth quarter of 2016 of $356.0 million represent an increase of 8.8% compared to the same period of 2015. Currency translation reduced net sales by 4.1%. Acquisitions increased net sales by 7.6%. Excluding the impact of currency translation and acquisitions, net sales increased by 5.3%, reflecting increased selling prices.
Global Packaging net sales for the full year 2016 of $1,383.3 million represent an increase of 4.5% compared to the same period of 2015. Currency translation reduced net sales by 10.7%. Acquisitions increased net sales by 7.3%.
Global Packaging operating profit for the fourth quarter was $33.4 million, compared to $28.1 million for the same period in 2015. Global Packaging operating profit for the full year 2016 was $114.0 million, compared to $116.5 million for the same period in 2015. The net impact of currency translation decreased operating profit during the year by $8.3 million as compared to the prior year, or approximately $0.06 of total Company earnings per share, primarily due to currencies in Latin America.
Total company net debt to adjusted EBITDA was 2.5 times at December 31, 2016. Net debt is defined as total debt less cash, and adjusted EBITDA is defined as the last twelve months total company adjusted operating income plus depreciation and amortization.
Management expects adjusted diluted earnings per share to be in the range of $2.85 to $3.00 for the full year 2017. This guidance excludes approximately $8 million of previously-announced pre-tax restructuring charges as well as any other unusual items that are unpredictable at this time.
Management expects full year 2017 cash from operations to be in the range of $440 to $480 million.
Cash flow from operations for the twelve months ended December 31, 2016 was $437.4 million, compared to $552.4 million in the prior year. Prior year cash flow reflects the initial benefits of programs implemented to drive improvements in working capital.
“We grew earnings by 8% on a currency neutral basis in 2016,” said William F. Austen, Bemis Company’s president and CEO. “We made progress as we continued to recapitalize our converting equipment and leverage our product technology globally. We completed the acquisition of SteriPack and also initiated a restructuring program in Latin America following the Emplal acquisition.
“As we begin 2017, our primary focus is on promoting the growth and success of our customers and on executing well – in our operations, in our strategic business projects, and in all areas of our business,” Austen added.
U.S. Packaging net sales of $632.0 million for the fourth quarter of 2016 represented a decrease of 3.6% compared to the same period of 2015. The decrease in net sales during the quarter was driven by mix of products sold.
U.S. Packaging net sales of $2,621.1 million for the full year 2016 represented a decrease of 4.6% compared to the same period of 2015. Compared to the prior year, unit volumes were up nearly 1%.
U.S. Packaging operating profit increased to $94.0 million in the fourth quarter of 2016, or 14.9% of net sales, compared to $93.5 million, or 14.3% of net sales, in 2015. U.S. Packaging operating profit increased to $400.0 million for the full year 2016, or 15.3% of net sales, compared to $391.8 million, or 14.3% of net sales, in 2015.
Global Packaging net sales for the fourth quarter of 2016 of $356.0 million represent an increase of 8.8% compared to the same period of 2015. Currency translation reduced net sales by 4.1%. Acquisitions increased net sales by 7.6%. Excluding the impact of currency translation and acquisitions, net sales increased by 5.3%, reflecting increased selling prices.
Global Packaging net sales for the full year 2016 of $1,383.3 million represent an increase of 4.5% compared to the same period of 2015. Currency translation reduced net sales by 10.7%. Acquisitions increased net sales by 7.3%.
Global Packaging operating profit for the fourth quarter was $33.4 million, compared to $28.1 million for the same period in 2015. Global Packaging operating profit for the full year 2016 was $114.0 million, compared to $116.5 million for the same period in 2015. The net impact of currency translation decreased operating profit during the year by $8.3 million as compared to the prior year, or approximately $0.06 of total Company earnings per share, primarily due to currencies in Latin America.
Total company net debt to adjusted EBITDA was 2.5 times at December 31, 2016. Net debt is defined as total debt less cash, and adjusted EBITDA is defined as the last twelve months total company adjusted operating income plus depreciation and amortization.
Management expects adjusted diluted earnings per share to be in the range of $2.85 to $3.00 for the full year 2017. This guidance excludes approximately $8 million of previously-announced pre-tax restructuring charges as well as any other unusual items that are unpredictable at this time.
Management expects full year 2017 cash from operations to be in the range of $440 to $480 million.
