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MINNEAPOLIS, MN,--January 23, 2004-- Bemis Company Reports Record Sales for the 4th Quarter and Full Year 2003; Delivers 4th Quarter EPS of $0.71 Restructuring and related charges for the fourth quarter of $0.07 per diluted share were included in these results. In addition, current quarter results reflect approximately $0.01 per diluted share of benefit from currency translation. Fourth quarter net sales were $664.3 million compared to $630.6 million in the fourth quarter of the prior year, a 5.4 percent increase, of which currency translation accounted for about 2 percent. For the full year 2003, the Company reported diluted earnings of $2.73 per share. Restructuring and related charges of $0.19 per diluted share were included in these results. Results for 2003 also reflect approximately $0.05 per diluted share of benefit from currency translation. Net sales in 2003 were $2.6 billion, an 11.2 percent increase over net sales in 2002. Acquisitions made during the latter half of 2002 accounted for 6.6 percent of this net sales growth and currency translation benefits accounted for about 3 percent. "I am excited about our opportunities as we enter 2004," said Jeff Curler, Bemis Company President and Chief Executive Officer. "Unit sales volumes strengthened during the fourth quarter in a number of our flexible packaging markets including shrink bag packaging, confectionery products and snack foods, as well as in the roll label pressure sensitive materials market. Bemis is well positioned to benefit from improving economic conditions. Our 2003 flexible packaging restructuring program has allowed us to refocus on the demands of our markets in 2004." BUSINESS SEGMENTS Flexible Packaging Flexible packaging, representing nearly 80 percent of total company net sales, delivered net sales of $521.7 million in the fourth quarter. This is an increase of 4.0 percent from $501.7 in the fourth quarter of the prior year. Net sales growth was primarily attributable to increased sales in markets for shrink bag packaging, confectionery products and snack foods. Operating profit for the fourth quarter was $66.4 million, a decrease of 7.3 percent from the fourth quarter of 2002. As a percentage of net sales, operating profit decreased to 12.7 percent from 14.3 percent a year ago. Operating profit included $3.1 million of restructuring and related charges for the fourth quarter of 2003. The remaining decrease in operating profit reflects the impact of competitive pricing and lower sales volume in polyethylene and paper packaging product lines, partially offset by increased operating profit in our high barrier product lines. For the total year, net sales of flexible packaging increased 12.3 percent to $2.1 billion. Of this total increase, 8.4 percent was a result of acquisitions completed during the latter half of 2002. Operating profit decreased to $263.7 million or 12.6 percent of net sales compared to $289.1 million or 15.5 percent of net sales in 2002. Current year operating profit included $13.9 million of restructuring and related charges. The 2003 restructuring program resulted in the closing of three flexible packaging plants during the third quarter of 2003. Lower operating profits in flexible packaging also reflect increased raw material costs and competitive pricing pressures combined with higher pension expenses. Commenting on the flexible packaging results, Curler stated, "With our flexible packaging restructuring efforts essentially completed, we are aggressively pursuing new market expansion for our existing technologies and investments in innovative new technologies. Our successful ICE(R) film products will continue to expand into new markets in North America, and we expect to officially launch the product line in Europe with the start-up of two film lines in Finland during the summer of 2004. Our polyethylene product line is integrating laminations, easy open technologies and other consumer convenience features into its packaging products, which will improve sales mix in the coming year." Pressure Sensitive Materials Fourth quarter net sales from the pressure sensitive materials business segment were $142.6 million, a 10.7 percent increase from the fourth quarter of 2002. Currency translation contributed about 5 percent, or about half of that net sales growth. This business segment reported operating profit of $3.8 million or 2.7 percent of net sales for the quarter, including $2.7 million of restructuring and related charges. This is compared to earnings performance of this segment during the fourth quarter of 2002 of $10.1 million or 7.8 percent of net sales. Increased sales volumes for roll label products offset lower sales volumes for higher margin graphic and technical products, which negatively impacted the 2003 profit levels. For the total year, net sales for pressure sensitive materials were $534.1 million, a 7.0 percent increase from the net sales of 2002, substantially due to the benefits of currency translation. Operating profit was $16.3 million or 3.1 percent of net sales in 2003, including restructuring and related charges of $2.7 million reported during the fourth quarter. This compares to operating profit of $27.3 million or 5.5 percent of net sales in 2002. Commenting on the results of the pressure sensitive materials business segment, Curler said, "We are beginning to see sustained improvement in unit sales volumes in the roll label product markets. We launched a new high performance roll label adhesive product in December that is receiving positive attention from our customers. Once our restructuring efforts are completed in 2004, we will have substantially improved our capacity utilization and reduced fixed costs in that product line." 2004 Earnings Outlook For the first quarter, which is historically the slowest quarter of the year for the company, Bemis expects results to improve over last year's results to a range of $0.67 to $0.72 per diluted share, which includes an estimated $.01 per share for restructuring and related charges primarily related to completion of the restructuring activities within the pressure sensitive materials business segment. For the full year 2004, management expects to deliver diluted earnings per share in the $3.15 to $3.30 range, including charges of $0.02 per diluted share related to restructuring activities announced in 2003. Bemis Company, Inc. will Webcast an investor telephone conference regarding
its fourth quarter 2003 financial results this morning at 10 a.m., Eastern
Time. Individuals may listen to the call on the Internet at www.bemis.com
under "Investor Relations". However, they are urged to check the website
ahead of time to ensure their computers are configured for the audio stream.
Instructions for obtaining the required, free, downloadable software are
available in a pre-event system test on the site. Bemis Company is a major supplier of flexible packaging and pressure sensitive materials used by leading food, consumer products, manufacturing, and other companies worldwide. Founded in 1858, the Company reported 2003 sales of $2.6 billion. The Company's flexible packaging business has a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing and converting. The Company's pressure sensitive materials business specializes in adhesive technologies. Based in Minneapolis, Minnesota, Bemis employs about 12,000 individuals in 53 manufacturing facilities in 10 countries around the world. More information about the company is available at our website, www.bemis.com. Statements in this release that are not historical, including statements
relating to the expected use of cash flow, pension estimates and future
performance of the company, are considered "forward-looking" and are presented
pursuant to the safe harbor provisions of the Securities Litigation Reform
Act of 1995. Such content is subject to certain risks and uncertainties.
Actual future results and trends may differ materially from historical
results or those projected in any such forward-looking statements depending
on a variety of factors which are detailed in the Company's regular SEC
filings including the most recently filed Form 10-K for the year ended
December 31, 2002. Click here to view more current news articles Did you find this material interesting? Comment via FEEDBACK
Source: Bemis Company
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