Bemis' product strategy paying off with record earnings per share

By Jim Johnson
Senior Staff Reporter

Published: July 24, 2014 2:56 pm ET
Updated: July 24, 2014 3:01 pm ET

Image By: Bemis Co. Inc. Henry Theisen

Related to this story

Topics Packaging, Film & Sheet

Bemis Co. Inc. is feeling good about itself these days as the flexible packaging and pressure sensitive materials firm is posting record earnings per share.

Bemis, based in Neenah, Wis., earned 65 cents per share, or $65.8 million, for the second quarter ended June 30 compared with earnings of 51 cents per share, or $53.1 million, during last year’s second quarter.

The company had revenue of $1.242 billion during the second quarter, down from $1.297 billion during last year’s same period.

“Our business teams continue to focus on serving customers, increasing market share and improving sales mix where our technologies provide a sustainable advantage,” Chief Operating Officer William F. Austen said on a conference call July 24 to discuss earnings.

“Our strategy to sell the right products is paying off,” CEO Henry Theisen said. Providing new, innovative products are earning the company higher prices “based on the value they add to our customers.”

“We grew our target dairy and liquid end markets consistent with our strategy to increase sales in high-barrier, value-added products,” he said. “In our liquid packaging business, we continue to see the positive impacts of the conversion away from historical formats such as glass and metal cans to our lighter and more sustainable flexible packaging.”

The company’s U.S. packaging segment had sales of $725.8 million during the second quarter, down 7.1 percent from the second quarter of last year. Divestitures accounted for 6.6 percent of that decrease with 0.5 percent coming from lower volumes in what the company described as “less differentiated product categories.”

The company’s global packaging sales were $371.8 million, a decrease of 0.7 percent from last year’s second quarter. That included a 5.8 percent decrease due to currency translation and a 5.2 percent increase from an acquisition in China.

Pressure sensitive materials sales were $144 million, up 1.6 percent quarter-over-quarter, the company said.

Bemis also increased the lower end of its 2014 earnings guidance from $2.40 to $2.45 per share. The upper end remains at $2.55 per share.

“While volume is important, our main focus remains in selling value added products to our customers,” Austen said.

“We strategically increased unit sales to liquid, diary and health care packaging end markets. We are pleased with this targeted growth and with the work we have done to lay the foundation for continued success in the coming periods,” he said.


Comments

Bemis' product strategy paying off with record earnings per share

By Jim Johnson
Senior Staff Reporter

Published: July 24, 2014 2:56 pm ET
Updated: July 24, 2014 3:01 pm ET

Post Your Comments


Back to story


More stories

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Image

Bubbles add some flair to 'Plain Jane' PET bottles

December 17, 2014 1:05 pm ET

Ron Puvak and the folks over at Plastic Technologies Inc. see big things coming from some very tiny bubbles.    More

Image

Bayer launches PC sheet production in Guangzhou, China

December 17, 2014 6:00 am ET

Bayer MaterialScience (BMS) has started its new polycarbonate sheet production plant at its Guangzhou, China, site.    More

Image

Amcor unveils hot-fill PET jars that accept metal lug closures

December 17, 2014 8:47 am ET

Amcor Rigid Plastics has developed hot-fill PET jars that accept metal lug closures — which the company claims is a first for food packaging.    More

Image

Ecolean expanding flexible packaging production in China

December 16, 2014 3:07 pm ET

Flexible packaging maker Ecolean AB is opening a new factory and warehouse in China to increase production.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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