“Our Q1 performance was solid, given a challenging start to the year, with adjusted earnings in line with our expectations,” said Mitch Butier, president and CEO.
“In the Label and Graphic Materials segment, organic growth slowed, while profitability was solid. We expect organic growth and operating margin to improve through the course of the year. Retail Branding and Information Solutions continues to deliver, with another quarter of strong sales growth for RFID products, solid growth in the base business, and significant margin expansion. And, despite a modest organic sales decline, Industrial and Healthcare Materials delivered strong margin expansion through increased productivity,” Butier added.
Label and Graphic Materials reported sales declined 3.3%; on an organic basis, sales grew 1.4%, as prior year pricing actions more than offset a modest decline in volume/mix. Reported operating margin decreased 50 basis points to 11.8%.
Retail Branding and Information Solutions reported sales increased 3.2%; on an organic basis, sales grew 7% driven by continued strength in radio frequency identification (RFID) solutions and solid growth in the base business. Reported operating margin increased 390 basis points to 12.9%.
Industrial and Healthcare Materials reported sales declined 5.1%; on an organic basis, sales declined by 1.0%. Reported operating margin increased 80 basis points to 8.3%.