Bemis Company Inc. saw record per-share earnings from continuing operations during the third quarter, but charges associated with the divestiture of its pressure-sensitive materials business weighed down profits.
The Neenah, Wis.-based packaging company earned $17 million, or 17 cents per share, on revenue of $1.098 billion for the quarter ended Sept. 30. That compares with earnings of $54 million, or 52 cents per share, on revenue of $1.21 billion for last year's third quarter.
Income from continuing operations was $61.5 million, or 61 cents per share, for the third quarter. That compares with $48.9 million, or 47 cents per share, for last year's third quarter.
“Our global packaging business delivered solid operating profit improvement, driven by our strong pricing discipline and unit volume growth in our high margin target end markets around the world. In our U.S. Packaging business, operating margins increased and we continued to commercialize new business awards,” CEO William Austen said in a statement.
Net sales for the company's global packaging unit for the quarter were $381.5 million, an increase of 2.9 percent from the third quarter of 2013, Bemis said.
Net sales for its U.S. packaging unit were $716.7 million, a decrease of 4.5 percent from 2013. The previous divestiture of the company's paper packaging division to Hood Packaging Corp. reduced sales in this category by 5.6 percent.
Taking that into account, net sales in the United States increased 1.1 percent thanks to “increased selling prices and improved sales mix,” Bemis reported.
Bemis, in September, said it was selling off its pressure-sensitive materials business known as MACtac to Platinum Equity LLC, a private equity firm based in California, for $170 million. The business being sold has manufacturing sites in Scranton, Pa.; Columbus, Ind.; San Luis Potosi, Mexico; Soignies, Belgium, and Genk, Belgium. Offices are in Stow, Ohio.
The deal is expected to close in the fourth quarter, Bemis said.