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Bemis Company Inc. Reports Operating Results (10-K)

February 29, 2012 | About:
10qk

10qk

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Bemis Company Inc. (BMS) filed Annual Report for the period ended 2011-12-31.

Bemis has a market cap of $3.2 billion; its shares were traded at around $31.59 with a P/E ratio of 15.6 and P/S ratio of 0.6. The dividend yield of Bemis stocks is 3.2%. Bemis had an annual average earning growth of 3.4% over the past 10 years. GuruFocus rated Bemis the business predictability rank of 3.5-star.

Highlight of Business Operations:

Diluted earnings per share for 2011 of $1.73 included charges of $0.24 for facility consolidation and other costs and $0.05 related to our Mayor Packaging acquisition, partially offset by a $0.03 gain associated with a non U.S. pension plan curtailment. This compared to diluted earnings per share for 2010 of $1.85, which included a $0.23 charge related to our Alcan Packaging Food Americas acquisition and a $0.06 charge related to the pre-closing impact of the July 2009 financing of the Alcan Packaging Food Americas acquisition. Diluted earnings per share from discontinued operations were $0.02 in 2010. Operating results for the year ended December 31, 2011 were negatively impacted by higher raw material costs and lower unit sales volumes during the year.

Operating profit for the total year 2011 was $427.6 million, or 9.0 percent of net sales, compared to $468.5 million, or 11.0 percent of net sales, in 2010. The net effect of currency translation increased operating profit in 2011 by $5.0 million. The lower percentage of operating profit to net sales in 2011 reflects the impact of higher raw material costs during the first six months of 2011 and lower unit sales volumes during the second half of the year. In addition, operating profit for 2011 included $34.9 million of facility consolidation and other charges and $4.5 million of Mayor Packaging acquisition-related charges, which was partially offset by a $2.7 million gain associated with a non U.S. pension plan curtailment. Total year 2010 operating profit included $20.1 million of Alcan Packaging Food Americas acquisition related charges.

Operating profit was $33.4 million or 5.8 percent of net sales in 2011, compared to $33.0 million or 5.9 percent of net sales in 2010. The net effect of currency translation increased operating profit in 2011 by $1.1 million. Lower unit sales volumes reflecting current weak economic conditions were offset by higher selling prices across all product categories. Total year 2011 operating profit included a $2.7 million charge related to facility consolidation and other costs.

For the year 2011, other operating income and expense included $20.0 million of fiscal incentive income compared to $15.9 million in 2010 and $16.6 million in 2009. These fiscal incentives are associated with net sales in South America and are included in flexible packaging segment operating profit. Other operating income and expense for the year 2011 also included $3.1 million of acquisition related expense, compared to $15.6 million of such charges in 2010. During 2009, in addition to the fiscal incentive income, other operating income and expense included $44.8 million of acquisition related expenses.

The operating results of our international operations are recorded in local currency and translated into U.S. dollars for consolidation purposes. The impact of foreign currency translation on net sales was an increase of $80.3 million and $62.1 million in 2011 and 2010, respectively. Operating profit increased by approximately $6.1 million and $5.8 million in 2011 and 2010, respectively, as a result of foreign currency translation.

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