Bemis Company, Inc. (NYSE:BMS) today reported financial results for its second quarter ended June 30, 2017. Refer to the reconciliation of Non-GAAP measures detailed in the attached schedule, including adjusted earnings per share, adjusted EBITDA, and net debt referenced in this release.
“Total company profits were less than expected this quarter due to the impact of the challenging economic environment in Brazil. Sales volumes declined sharply in Brazil versus our run rates as consumers, retailers, and our customers reacted to the latest political instability. In our U.S. business, profits were in line with the expectations we shared last quarter,” said William F. Austen, Bemis Company’s President and Chief Executive Officer. “During June, we initiated a restructuring and cost savings plan to better position the Company in the current environment and for the long term. These efforts are progressing well to create a more agile, streamlined, and efficient business that continues to be successful over the long term.”
BUSINESS SEGMENT RESULTS
U.S. Packaging
U.S. Packaging net sales of $661.5 million for the second quarter of 2017 represented a decrease of 1.4 percent compared to the same period of 2016. Compared to the prior second quarter, unit volumes were up approximately one percent. This was offset by a decrease in net sales driven primarily by mix of products sold and contractual selling price reductions previously negotiated with some customers to secure business for the long term.
U.S. Packaging operating profit decreased to $80.1 million in the second quarter of 2017, or 12.1 percent of net sales, compared to $103.5 million, or 15.4 percent of net sales, in 2016. Compared to the prior year, lower profits were driven by the impact of mix of products sold, previously-negotiated contractual selling price reductions on select products, and inefficiencies related to an ERP system implementation at one of the Company’s manufacturing facilities.
Global Packaging
Global Packaging net sales for the second quarter of 2017 were $350.6 million, approximately flat with the same period of 2016. Currency translation decreased net sales by 0.6 percent. Acquisitions increased net sales by 1.6 percent. Organic sales decline of 0.9 percent reflects decreased unit volumes of approximately 3 percent, partially offset by sales price and mix.
Global Packaging operating profit for the second quarter was $17.7 million, compared to $28.1 million for the same period in 2016. The net impact of currency translation decreased operating profit by $0.6 million during the second quarter, as compared to the prior year, primarily due to currencies in Latin America. Compared to the prior year, lower profits in Global Packaging were driven primarily by a 10 percent unit volume decline in Latin America and the associated impacts of the challenging economic environment in Brazil.
more detail at: http://investors.bemis.com/press-release/bemis-company-reports-second-quarter-results-and-revises-guidance