Sales for the third quarter of 2018 increased 10.8% to $1,337.2 million, compared to $1,206.8 million for the third quarter of 2017, with 2.4% organic growth, 6.3% acquisition-related growth and a 2.1% positive impact from foreign currency translation.
Operating income for the third quarter of 2018 was $186.2 million compared to $185.3 million for the comparable quarter of 2017. Net earnings were $112.7 million for the 2018 third quarter compared to $106.9 million for the 2017 third quarter. Basic and adjusted basic earnings per Class B share were $0.63 and $0.66, respectively, compared to basic and adjusted basic earnings per Class B share of $0.60 and $0.61, respectively, in the prior year third quarter.
For the nine-month period ended Sept. 30, 2018, sales, operating income and net earnings improved 8.7%, 10.1% and 15.7% to $3.8 billion, $586.5 million and $352.5 million, respectively, compared to the same nine-month period in 2017. The 2018 nine-month period included results from nine acquisitions completed since Jan. 1, 2017, delivering acquisition-related sales growth for the period of 5.9%. Organic sales growth was 2.3.
“CCL Segment posted stronger than expected organic growth in the quarter, especially in the Home & Personal Care and Food & Beverage sectors on new business wins and share gains. Healthcare & Specialty and CCL Design performances were also solid although we did see signs of slowing conditions in automotive, this was more than offset by good demand in electronics markets,” Geoffrey T. Martin, president and CEO, said. “As in the prior year period, CCL Secure had a low quarter reducing the overall segment growth rate; year to date results are exactly in line with internal plans. Checkpoint profit margins also expanded on significant operating improvements in apparel labeling and rich mix in the merchandise availability business. Resin inflation continued to result in a disappointing Innovia performance, which now includes Treofan, which closed in early July. Treofan completed inventory acquisition accounting adjustments reducing quarterly profitability by $4.3 million.”
CCL sales increased 10.8% to $816.2 million, with 7.5% organic growth, 1.4% acquisition contribution and 1.9% positive currency translation. Operating income was up 15.0% to $117.6 million, with a 14.4% operating margin.
Avery sales declined 6.4% to $198.4 million, with 2% acquisition contribution, 2.7% positive currency translation impact offset by 11.1% organic decline. Operating income was $40.8 million with a 20.6% operating margin.
Checkpoint sales increased 3.8% to $168.8 million, with 2.2% organic growth and 1.6% positive currency translation. Operating income is up 17.5% to $25.5 million, with a 15.1% operating margin.
Innovia sales increased by 60.9% to $153.8 million largely due to the Treofan acquisition impact, with 3.1% positive currency translation more than offset by an organic decline in packaging films. Operating income of $2.3 million was reduced by Treofan’s $4.3 million non-cash acquisition accounting adjustment expensed to cost of sales and higher resin costs.