Bemis Co. reports strong results

By Jim Johnson
Senior Staff Reporter

Published: January 30, 2014 1:30 pm ET
Updated: January 31, 2014 12:29 pm ET

Related to this story

Topics Packaging, Film & Sheet

After focusing on integration of acquired plants and closures of others in recent years, Bemis Co. Inc. is looking at 2014 as a year of growth.

The Neenah, Wis.-based company, as part of its year-end earnings report, unveiled what Chief Operating Officer William F. Austen called “a robust capital expenditure plant for 2014 that supports our long-term growth strategy.”

“In recent years, we have been focused on integrating 25 acquired plants across five countries in addition to closing nine pants impacted by our facility consolidation program,” he said on a conference call to discuss earnings.

“Now that this hard work is complete, we are focused on executing our growth agenda. In 2014, we are investing in state-of-the-art capacity to support top-line growth and further strengthen our competitive position,” Austen said.

Bemis expects to spend between $175 million to $200 million on capital expenditures this year to support those efforts.

Increased capital spending this year will include investments in the growing market for flexible liquid packaging, medical packaging and the company’s sealant and protective film extrusion platform in Asia, he said. “In addition, we are investing in select research and development projects that will create long-term growth opportunities.”

“Current market trends support these investments,” Austen said.

News of the capital spending plans comes as Bemis reported record diluted earnings per share in 2013 on slightly lower overall revenue.

The flexible packaging and pressure sensitive materials maker earned $212.6 million, or $2.04 per share, on revenue of $5.03 billion in 2013. That compares with earnings of $173.8 million, or $1.66 per share, on revenue of $5.14 billion in 2012.

Adjusted diluted earnings would have been $2.28 per share in 2013 up from $2.15 per share in 2012, Bemis said.

The company earned $56.2 million, or 54 cents per share, on revenue of $1.22 billion during the fourth quarter of last year. That compares with earnings of $40.1 or 38 cents per share, on revenue of $1.24 billion for the fourth quarter of 2012.

“We delivered on our strategy to achieve sustainable improvements in sales mix and optimized our footprint with the completion of our facility consolidation program,” CEO Henry Theisen said in a statement. “With the challenges of relocating production equipment behind us, we expect our future performance metrics to improve. As we begin 2014, we are experiencing positive sales momentum in our priority growth areas.”

Packaging sales in the United States accounted for $3 billion in revenue in 2013 while global packaging added another $1.5 billion. Pressure sensitive net sales totaled $553.2 million, the company said.

Bemis also provided earning guidance of $2.40 to $2.55 per diluted share, a 5- to 12-percent increase compared to 2013. First quarter guidance is 55 to 60 cents per diluted share.

“As we finish 2013 and enter early 2014, our orders and our backlog are strong across all geographies. We are now cautiously optimistic about modestly higher volume trends going forward,” Theisen said on the conference call.

The CEO also indicated the company repurchased 1 million shares of stock during the fourth quarter and 2 million for the entire year.


Comments

Bemis Co. reports strong results

By Jim Johnson
Senior Staff Reporter

Published: January 30, 2014 1:30 pm ET
Updated: January 31, 2014 12:29 pm ET

Post Your Comments


Back to story


More stories

Image

PET film maker Evertis expanding production in Mexico, Brazil, Portugal

November 20, 2014 2:52 pm ET

Evertis, a PET film maker, is expanding production at plants in Mexico, Brazil and Portugal, the company said.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Image

New York City officials avoid taking a stand on plastic bag fee

November 20, 2014 11:28 am ET

New York Mayor Bill de Blasio's administration claimed Nov. 19 to be committed to dramatically reducing plastic bag consumption in New York City, but ...    More

Image

NS Farrington 'on track' to recycle 1 ton of PE per month

November 20, 2014 10:23 am ET

A polyethylene recycling program created by N.S. Farrington & Co. has passed the 60,000 pound mark.    More

Image

GSE hires industry veteran Bob Preston as new CEO and president

November 19, 2014 11:24 am ET

Geosynthetic liner maker GSE Environmental Inc. has named a new CEO and president: Bob Preston, who left plastics machinery manufacturer Davis-Standar...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events