Operating income for the second quarter of 2019 was $198.7 million compared to $199.6 million for the comparable quarter of 2018. Operating income declined 1.2% excluding currency translation.
For the six-month period ended June 30, 2019, sales, operating income and net earnings improved 7.8%, 0.8% and 2.1% to $2.7 billion, $403.6 million and $244.9 million, respectively, compared to the same six-month period in 2018. The 2019 six-month period included results from 11 acquisitions completed since Jan. 1, 2018, delivering acquisition-related sales growth for the period of 5.0%. Organic sales growth was 2.4% and foreign currency translation added a 0.4% positive impact.
“Operating performance was essentially flat for both the quarter and half year as a number of end markets slowed globally,” said Geoffrey T. Martin, CCL’s president and CEO. “For the quarter, the CCL Segment posted 2.3% organic growth but a decline in profitability. Avery posted 2.5% organic sales growth with improved profitability despite a later start to the North American back-to-school season. Checkpoint sales were flat for the quarter and down slightly year to date, largely on the impact of large technology roll out orders last year; profitability declined in both periods compared to a record first half of 2018. Price increases, improved productivity, better mix, foreign exchange gains on U.S. dollar sales and stable resin cost combined to drive significantly higher profitability at Innovia’s legacy operations, compared to a weak prior year quarter. The Treofan acquisition contributed modestly to results with the new extrusion line in Mexico starting up in late May.”
“The company finished the quarter with a strong balance sheet,” added Martin. “The company’s net leverage ratio decreased to 1.99 times EBITDA compared to 2.1 times EBITDA at the end of the first quarter of 2019. Combined $481.5 million cash-on-hand and US$475.8 million undrawn capacity on our syndicated revolving credit facility gives ample capacity to continue our strategic tuck-in acquisitions globally.”