Free 7-day Trial
All Articles and Columns »

AptarGroup Inc. Reports Operating Results (10-Q)

November 03, 2010 | About:
insider

10qk

18 followers
AptarGroup Inc. (ATR) filed Quarterly Report for the period ended 2010-09-30.

Aptargroup Inc. has a market cap of $3.02 billion; its shares were traded at around $44.91 with a P/E ratio of 18.2 and P/S ratio of 1.6. The dividend yield of Aptargroup Inc. stocks is 1.6%. Aptargroup Inc. had an annual average earning growth of 9.7% over the past 10 years. GuruFocus rated Aptargroup Inc. the business predictability rank of 4.5-star.ATR is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Tom Russo of Gardner Russo & Gardner, Jim Simons of Renaissance Technologies LLC, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
This is the annual revenues and earnings per share of ATR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ATR.


Highlight of Business Operations:

Depreciation and amortization expenses decreased approximately $0.7 million in the third quarter of 2010 to $32.4 million compared to $33.1 million in the third quarter of 2009. On a constant currency basis, the expense would have increased by approximately $1.2 million in the quarter. The majority of this increase is related to the roll-out of our global enterprise resource planning system, which was first placed into service during the third quarter of 2009. Depreciation and amortization as a percentage of net sales decreased to 6.3% in the third quarter of 2010 compared to 7.0% for the same period a year ago due to the increase in sales.

Depreciation and amortization expenses increased approximately $4.3 million in the first nine months of 2010 to $98.9 million compared to $94.6 million for the first nine months of 2009. On a constant currency basis, the expense would have increased by approximately $5.8 million for the year. As with the quarter, the majority of this increase is related to the roll-out of our global enterprise resource planning system, which was first placed into service during the third quarter of 2009. Depreciation and amortization as a percentage of net sales decreased to 6.4% for the nine months ended September 30, 2010 compared to 7.0% in the same period of the prior year.

Net other expenses for the nine months ended September 30, 2010 decreased slightly to $10.9 million from $11.2 million in the same period in the prior year. A $2.0 million decrease in interest expense was largely offset by a corresponding $0.8 million

Segment Income for the first nine months of 2010 increased approximately 126% to $87.8 million compared to $38.8 million reported in the same period in the prior year. The profitability increase for the first nine months of 2010 is due to the same reasons mentioned above for the third quarter. Segment Income for the first nine months of 2009 includes a $1.5 million charge for consolidation/severance expenses. Excluding this charge, Beauty & Home Segment Income increased 118% or $47.5 million for the first nine months of 2010 compared to the first nine months of 2009.

Net sales for the quarter ended September 30, 2010 increased approximately 11% to $139.0 million compared to $124.8 million in the third quarter of the prior year. The stronger U.S. dollar compared to the Euro negatively impacted sales by approximately 3%. Therefore, core product sales, excluding changes in foreign currency rates, increased 14%. Higher tooling sales contributed a $0.6 million increase when comparing the third quarter of 2010 to the same period in the prior year. The pass-through of higher resin costs to customers had a positive impact on sales of $7.2 million. Product sales, excluding foreign currency changes, to the personal care market increased approximately 7% in the third quarter of 2010 compared to the same period in the prior year, while increases for household and food and beverage markets were 34% and 16%, respectively. These increases are primarily due to strong demand across all regions and markets.

Segment Income in the third quarter of 2010 increased approximately 47% to $15.4 million compared to $10.4 million reported in the same period in the prior year. The primary causes for the increase are the positive sales factors noted above along with a decrease relating to consolidation/severance expenses. Consolidation/severance expenses were $0.4 million in 2010 and $1.4 million in 2009. Excluding the charge for consolidation/severance expenses, Closures segment Income improved 33% or $4 million.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.7/5 (6 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide