Third Quarter Highlights (all comparisons made to the June 2019 quarter): *Net sales up 50 percent to $2.9 billion *Operating income up 61 percent to $347 million *Operating EBITDA up 67 percent to $581 million *RPC Group Plc (“RPC”) integration and synergy realization progressing ahead of plan *Increased fiscal year 2020 cash flow from operations and free cash flow guidance to $1.45 billion and $830 million, respectively
O-I Glass, Inc. announced it completed the sale of its Australia and New Zealand (ANZ) business unit to Visy Industries. Gross proceeds approximated AUD $947 million including a related sale-leaseback agreement which approximated AUD $214 million. Based on recent currency exchange rates, gross proceeds represented approximately USD $677 million. Approximately 95 percent of proceeds are being received at time of closing and the remaining balance will be paid within 12 months of closing without conditions precedent. Net proceeds will be principally used to reduce debt. O-I ANZ is the largest manufacturer of glass bottles and containers in Australia and New Zealand and the business generated sales of approximately AUD $754 million and EBITDA of approximately AUD $124 million in 2019.
*Operating cash flow increased 42% to $51.2 billion for the trailing twelve months, compared with $36.0 billion for the trailing twelve months ended June 30, 2019. *Free cash flow increased to $31.9 billion for the trailing twelve months, compared with $25.0 billion for the trailing twelve months ended June 30, 2019. *Net sales increased 40% to $88.9 billion in the second quarter, compared with $63.4 billion in second quarter 2019. Excluding the $582 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 41% compared with second quarter 2019. *Operating income increased to $5.8 billion in the second quarter, compared with operating income of $3.1 billion in second quarter 2019. *Net income increased to $5.2 billion in the second quarter, or $10.30 per diluted share, compared with net income of $2.6 billion, or $5.22 per diluted share, in second quarter 2019.
Staffers at Hearst Magazines digital and print properties voted overwhelmingly yesterday to unionize with the Writers Guild of America, East (WGAE). The election, which happened by mail ballot, follows Hearst management’s refusal to voluntarily recognize its staff’s efforts to unionize in November of last year. Roughly 500 Hearst employees make up the new bargaining unit and work across editorial, video, design, photo and social. The unionized staff seeks to address issues that include diversity, transparency, compensation and editorial standards through its contract.
Pursuant to the terms that will apply to borrowing under the CARES Act, the Postal Service will provide the Department of the Treasury with certain information regarding our costs, revenues, and overall financial position. This includes providing Treasury, under strict terms of confidentiality, with those contracts that generate the most revenue for the Postal Service. Providing this information is merely an acknowledgment of the fact that Treasury has been designated by Congress as the lender for the Postal Service, and it therefore has a legitimate interest under certain circumstances in understanding those factors that affect our current and projected financial position. Other conditions, such as the requirement that borrowed funds only be used for operating expenses, and not for capital expenses, were expressly mandated by Congress in the language of the CARES Act. Contrary to insinuations made in the Washington Post article, nothing in these terms confers upon Treasury any role whatsoever in Postal Service pricing, management, or strategy.
If the people who depend on forests for their livelihoods aren’t included in conversations about sustainable forest management, how can it be truly sustainable? After all, people and forests are closely linked. Forests contribute to the livelihoods of some 1.6 billion people worldwide, the majority of which are in rural regions of developing countries. This means sustainable forest management and certification have the potential to positively impact a huge number of lives around the world. This subject is at the heart of both PEFC and Building and Wood Worker’s International (BWI). Earlier this month, our CEO Ben Gunneberg and Coen van der Veer from BWI came together to talk about this vital issue. Check out their conversation in the video below:
Second Quarter 2020 Summary: *Reported sales and core sales decreased 6% primarily due to the negative effects of COVID-19 on the beauty and beverage markets as well as passing on lower resin costs; negative currency effects were offset by contributions coming from acquisitions *Reported sales growth of 7% and core sales growth of 6% in our Pharma segment was offset by decreases in reported sales and core sales in our Beauty + Home and Food + Beverage segments *Reported net income totaled $42 million (a decrease of 43% compared to the prior year) *Cash flow from operations was $228 million in the first half of 2020 (an increase of 3% compared to the prior year)
Financial Highlights: *Net sales of $532 million compared to $869 million in the second quarter of 2019 *Organic net sales decrease of 29.1% from the second quarter of 2019 *GAAP net loss of $63 million, or $1.86 per diluted share, compared to net loss of $25 million, or $0.72 per diluted share, in the second quarter of 2019 *Cash balance of $97 million as of June 30, 2020, providing sufficient liquidity to continue to fund ongoing operations *No drawings under our debtor-in-possession ("DIP") credit facility
Avery Dennison Label and Packaging Materials announced that its Clear Biaxially Oriented Polypropylene (BOPP) film portfolio has been certified to comply with the Association of Plastic Recyclers (APR) Critical Guidance Protocol for HDPE recycling. The Avery Dennison BOPP portfolio is the first to pass testing, and the company is committed to expanding the portfolio of film materials with pressure sensitive emulsion acrylic adhesives that meet the APR HDPE Critical Guidance moving forward. The announcement gives brands in the personal care and beauty space, as well as other segments that use Avery Dennison clear BOPP films on high-density polyethylene (HDPE) plastics, validation that the labels stay with the container without impacting the recycling process. The APR Critical Guidance is a comprehensive laboratory scale protocol that is used to assess the compatibility of packaging innovations with reclamation systems. The Critical Guidance for HDPE-CG-01 was released on July 20, 2020. Avery Dennison is the first label manufacturer to achieve certification in accordance with the new guidelines. The company has previously achieved certification with APR Critical Guidance for PET plastics.
Mercer International Inc. reported second quarter 2020 Operating EBITDA decreased to $40.5 million from $70.0 million in the second quarter of 2019 and from $57.0 million in the first quarter of 2020. In the second quarter of 2020, net loss was $8.4 million (or $0.13 per share) compared to net income of $10.3 million in the second quarter of 2019 and a net loss of $3.4 million in the first quarter of 2020. In the first half of 2020, Operating EBITDA decreased by 50% to $97.5 million from $193.8 million in the same period of 2019. In the first half of 2020, net loss was $11.8 million compared to net income of $61.9 million in the same period of 2019.