07.27.18
Bemis Company, Inc. reported financial results for its second quarter ended June 30, 2018. The company reported sales of $1,033.3, with operating profit of $117.6 million.
“We delivered strong earnings this quarter and continued to make progress on Agility, which is our plan to fix, strengthen, and grow our business,” said William F. Austen, Bemis Company’s president and CEO. “Operating profit increased $20 million compared to last year, with strong improvement in all of our business segments.”
As part of the company’s previously-announced improvement plan called “Agility” to fix, strengthen, and grow its business, the fix aspect of this plan includes a restructuring and cost savings target of $65 million pre-tax by the end of 2019. The company continues to expect approximately $35 million of benefit in 2018.
Agility-related savings were approximately $9 million during the second quarter of 2018, for a year-to-date total of $17 million, reflecting a solid pace to meet the company’s full year 2018 savings plan. These savings include benefits from reducing administrative positions and other fixed and variable costs.
U.S. Packaging net sales of $683.7 million for the second quarter of 2018 represented an increase of 3.4% compared to the same period of 2017. The increase in net sales was driven primarily by higher selling prices and mix partially offset by lower unit volumes of approximately 1%.
U.S. Packaging operating profit increased to $89.9 million in the second quarter of 2018, or 13.1% of net sales, compared to $80.1 million, or 12.1% of net sales, in 2017.
Latin America Packaging net sales of $158.5 million for the second quarter of 2018 represented a decrease of 7.3% compared to the same period of 2017. Currency translation decreased net sales by 16.1%. Organic sales growth of 8.8% reflects improved sales price and mix partially offset by decreased unit volumes of approximately 2% driven by the nationwide trucker strike in Brazil during the quarter.
Latin America Packaging operating profit increased to $9.0 million in the second quarter of 2018, or 5.7% of net sales, compared to $2.9 million, or 1.7% of net sales, in 2017.
Rest of World Packaging net sales of $191.1 million for the second quarter of 2018 represented an increase of 6.3% compared to the same period of 2017. Currency translation increased net sales by 4.8%. The acquisition of Evadix increased net sales by 1.0%.
Rest of World Packaging operating profit increased to $18.7 million in the second quarter of 2018, or 9.8% of net sales, compared to $14.8 million, or 8.2% of net sales, in 2017.
Cash flow from operations for the three months ended June 30, 2018 was $106.5 million, compared to $106.0 million in the prior year. Total company net debt to adjusted EBITDA was 2.6 times at June 30, 2018.
“We delivered strong earnings this quarter and continued to make progress on Agility, which is our plan to fix, strengthen, and grow our business,” said William F. Austen, Bemis Company’s president and CEO. “Operating profit increased $20 million compared to last year, with strong improvement in all of our business segments.”
As part of the company’s previously-announced improvement plan called “Agility” to fix, strengthen, and grow its business, the fix aspect of this plan includes a restructuring and cost savings target of $65 million pre-tax by the end of 2019. The company continues to expect approximately $35 million of benefit in 2018.
Agility-related savings were approximately $9 million during the second quarter of 2018, for a year-to-date total of $17 million, reflecting a solid pace to meet the company’s full year 2018 savings plan. These savings include benefits from reducing administrative positions and other fixed and variable costs.
U.S. Packaging net sales of $683.7 million for the second quarter of 2018 represented an increase of 3.4% compared to the same period of 2017. The increase in net sales was driven primarily by higher selling prices and mix partially offset by lower unit volumes of approximately 1%.
U.S. Packaging operating profit increased to $89.9 million in the second quarter of 2018, or 13.1% of net sales, compared to $80.1 million, or 12.1% of net sales, in 2017.
Latin America Packaging net sales of $158.5 million for the second quarter of 2018 represented a decrease of 7.3% compared to the same period of 2017. Currency translation decreased net sales by 16.1%. Organic sales growth of 8.8% reflects improved sales price and mix partially offset by decreased unit volumes of approximately 2% driven by the nationwide trucker strike in Brazil during the quarter.
Latin America Packaging operating profit increased to $9.0 million in the second quarter of 2018, or 5.7% of net sales, compared to $2.9 million, or 1.7% of net sales, in 2017.
Rest of World Packaging net sales of $191.1 million for the second quarter of 2018 represented an increase of 6.3% compared to the same period of 2017. Currency translation increased net sales by 4.8%. The acquisition of Evadix increased net sales by 1.0%.
Rest of World Packaging operating profit increased to $18.7 million in the second quarter of 2018, or 9.8% of net sales, compared to $14.8 million, or 8.2% of net sales, in 2017.
Cash flow from operations for the three months ended June 30, 2018 was $106.5 million, compared to $106.0 million in the prior year. Total company net debt to adjusted EBITDA was 2.6 times at June 30, 2018.