Bemis Company Inc. Reports Operating Results (10-Q)
Bemis Company Inc. has a market cap of $3.23 billion; its shares were traded at around $29.57 with a P/E ratio of 14.86 and P/S ratio of 0.92. The dividend yield of Bemis Company Inc. stocks is 3.11%. Bemis Company Inc. had an annual average earning growth of 2.7% over the past 10 years.BMS is in the portfolios of Bill Frels of Mairs & Power Inc. , John Keeley of Keeley Fund Management, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC, Manning & Napier Advisors, Inc.
Highlight of Business Operations: Under the terms of an order signed by the U.S. District Court for the District of Columbia on February 25, 2010, a portion of the Food Americas business acquired on March 1, 2010 was to be divested. The divested assets include two facilities located in Menasha, Wisconsin and Tulsa, Oklahoma. We completed the sale of the discontinued operations on July 13, 2010 to Exopack Holding Corp. (Exopack), an affiliate of private investment firm Sun Capital Partners, Inc. for approximately $82 million. The divested business recorded 2009 net sales of approximately $156 million and manufactures flexible packaging for retail natural cheese and shrink bags for fresh red meat. Operating results associated with this business were classified as discontinued operations for the three and six months ended June 30, 2010.
Net sales for the second quarter ended June 30, 2010, were $1.27 billion compared to $866.4 million in the second quarter of 2009, an increase of 46.6 percent. Acquisitions increased net sales by approximately 38 percent for the second quarter of 2010. Currency effects increased net sales by 2.1 percent compared to the same quarter of 2009. The remaining 6.5 percent increase in net sales reflects higher sales of value-added products and improved unit sales volume.
Diluted earnings per share for the second quarter of 2010 included a $0.04 charge for acquisition-related integration costs, including severance costs for workforce reductions and equipment relocation costs, and also included a $0.02 charge associated with purchase accounting adjustments for inventory. Diluted earnings per share for the second quarter of 2009 included a $0.03 per share charge for acquisition-related legal, accounting and other professional fees.
Operating profit for the second quarter of 2010 included a charge of $3.5 million related to purchase accounting charges for inventory and a charge of $3.9 million for acquisition related costs including severance costs for workforce reduction and equipment relocation costs. The decrease in operating profit as a percentage of net sales in the second quarter of 2010 reflected the negative short-term effects of raw material cost increases in early 2010 and generally lower operating margins in the newly acquired Food Americas operations. Raw material cost reductions in late 2008 and early 2009 provided a short-term benefit to profits during the second quarter of 2009.
For the second quarter of 2010, other operating (income) expense, net, included $4.2 million of fiscal incentive income, an increase of $0.4 million compared to $3.8 million for the second quarter of 2009. Fiscal incentives are associated with net sales and manufacturing activities in certain South American operations and are included in business segment operating profit. Other operating expense in the second quarter of 2010 also included $1.2 million of legal, accounting, and other professional fees associated with the acquisition of the Food Americas business, compared to $4.7 million of such fees for the same period of 2009.
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