“Our record 3Q results reflect continued progress in the implementation of our long-term strategy,” said William Austen, Bemis Company’s President and CEO. “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. As we move forward, we are focused on further improving performance metrics through continued pricing discipline, capacity investments, and operational improvements that will deliver more efficient scale-up of our growth projects.”
U.S. Packaging segment’s net sales of $716.7 million for the 3Q 2014 represented a decrease of 4.5%, compared to the same period of 2013.
U.S. Packaging segment’s operating profit for the 3Q 2014 was $95.3 million, or 13.3% of net sales, compared to $81.8 million, or 10.9% of net sales, in the same period of 2013. Operating profit results reflect the benefit of sales mix improvements and the adverse impact of costs and manufacturing inefficiencies related to the commercialization of new business.
Global Packaging segment’s net sales for the 3Q 2014 of $381.5 million represented an increase of 2.9%, compared to the 3Q 2013. Currency translation decreased net sales by 2.5%. Excluding the impact of currency translation, Global Packaging net sales increased 5.4% from the prior year, reflecting unit volume growth in addition to favorable sales price and mix.
Global Packaging segment’s operating profit for the 3Q was $32.9 million, or 8.6% of net sales, compared to $28.3 million, or 7.6% of net sales, for the same period in 2013. The net effect of currency translation decreased operating profit during the third quarter of 2014 by $1 million. Margin improvement in this segment reflects the favorable impact of increased sales of value-added packaging for medical device, pharmaceutical, and perishable food applications.
Bemis Company, Inc. is a major supplier of packaging and pressure sensitive materials used by leading food, consumer products, healthcare, and other companies worldwide.
