AptarGroup, Inc. (NYSE: ATR), a global leader in innovative packaging technologies that build brand value, today announced its third quarter results.
Third Quarter 2017 Summary
• Reported sales increased 6% over the prior year driven by 3% core growth and a 3% favorable impact from exchange rates
• Each business segment achieved core sales growth
• Lower custom tooling sales negatively impacted the sales growth by 2%
• Reported net income (9% of net sales) increased to $54 million (+1%)
• EBITDA (19% of net sales) decreased to $118 million (-4%)
• Profit margins were negatively impacted by operational challenges at our decorative facility in Europe, higher professional fees, raw material cost increases and certain currency transaction losses
• Reported earnings per share were $0.83 compared to $0.82 in the prior year (+1%)
• Compared to the prior year, earnings per share for the current period included certain tax benefits amounting to approximately $0.05 related to foreign tax settlements and $0.01 related to stock-based compensation
Third Quarter Results
For the quarter ended September 30, 2017, reported sales increased 6% over the prior year to $624 million. Core sales, which exclude the positive impact from changes in currency exchange rates, increased approximately 3%.
Commenting on the quarter, Stephan Tanda, President and CEO, said, “We are pleased to report sales growth in each of our business segments. Our Pharma segment, the leading provider of drug delivery systems to the pharmaceutical industry, grew sales despite a difficult comparison to the prior year, which included a significant amount of custom tooling sales related to a specific project. Demand for our products was broad-based across each end market, and was especially strong in the consumer health care and injectables markets. In our Beauty + Home segment, sales to the personal care and home care markets improved over the prior year, with new business wins contributing to the growth. We continue to offer the industry’s broadest solutions portfolio and are encouraged by the sales improvements in Beauty + Home as we move forward with our initiatives to return this business to long-term sustainable growth. Our Food + Beverage segment had an excellent quarter as demand for our innovative dispensing closures increased in both the food and beverage markets. Offsetting the positive effects of our segments’ sales growth were several factors that negatively impacted our earnings. We continue to address the operational challenges at our decorative facility in Europe, which had a negative impact on our quarterly results. We also experienced higher professional fees related to specific projects, increased raw material costs and negative currency transaction losses related to our operations in Argentina.”
Aptar’s reported earnings per share increased 1% to $0.83 compared to $0.82 reported a year ago. Current period earnings per share included a positive impact of approximately $0.06 related to certain tax benefits compared to the prior year. Adjusting for changes in currency translation rates, comparable earnings per share for the prior year were approximately $0.85.
Year-to-Date Results
For the nine months ended September 30, 2017, reported sales increased 3% to $1.84 billion from $1.79 billion a year ago. Core sales, which exclude the positive impact from acquisitions, increased approximately 2%. Changes in currency exchange rates did not have a significant impact on the sales growth.
Tanda commented on the year-to-date results, “We reported top line growth through the first nine months of the year and our Pharma and Food + Beverage segments have performed well, with sales growth in each end market. When we exclude the positive contribution from last year’s acquisition, our Beauty + Home segment achieved sales in line with prior year sales. The diversity of our business continues to be a key strength of Aptar as we serve eight end markets across the globe.”
For the nine months year-to-date, Aptar’s reported earnings per share increased 10% to $2.64 compared to $2.40 reported a year ago. The nine months year-to-date earnings per share included a positive impact of approximately $0.20 related to certain tax benefits compared to the prior year. Prior year adjusted earnings per share, which adjusts for costs related to the Mega Airless acquisition, would have been $2.49.
more detail at: http://investors.aptar.com/phoenix.zhtml?c=109617&p=irol-newsArticle&ID=2311950