Sales for the second quarter of 2020 decreased 9.8% to $1,221.9 million, compared to $1,354.2 million for the second quarter of 2019, with 12.4% organic decline partially offset by 2.2% acquisition-related growth and 0.4% positive impact from foreign currency translation.
Operating income for the second quarter of 2020 was $163.6 million compared to $198.7 million for the comparable quarter of 2019. Operating income decreased 18.2%, excluding currency translation.
For the six-month period ended June 30, 2020, sales, operating income and net earnings declined 6.3%, 9.8% and 5.9% to $2.5 billion, $363.9 million and $230.5 million, respectively, compared to the same six-month period in 2019.
The 2020 six-month period included results from twelve acquisitions completed since January 1, 2019, delivering acquisition-related sales growth for the period of 1.7%. Organic sales decline was 7.7% and foreign currency translation was a 0.3% negative impact.
“Our main focus since the onset of this pandemic has been the health and safety of all employees while retaining supply chains able to respond to customer demand in essential industries,” Geoffrey T. Martin, president and CEO, said. “Our people coped with dramatically varying new business conditions as some product line demand almost evaporated, while others more than doubled. Our global business teams have simply excelled in the crisis. The second quarter sales cadence was highly unusual: tough in both April and May with June above prior year, partly aided by two additional work days.”
“Looking ahead it is impossible to predict the impact of the coronavirus pandemic on the global economy and the company’s full year 2020 financial results with any certainty,” Martin added. “The CCL Segment returned to more normalized demand patterns this summer, excluding the automotive sector which, although improved, remains difficult. The pantry loading boom that helped Innovia receded. Both Avery and Checkpoint posted solid results in June as economies and retailing opened up. However, concerns on rising case numbers in the Americas, parts of Asia and Europe remain, with the potential for a second wave of lockdown restrictions. The strength and longevity of this current environment is simply unknown.”