Resolute Forest Products Inc. today announced that a U.S. federal court has ordered the U.S. Department of Agriculture (USDA) to try again to provide "a reasoned and coherent treatment" of its decision implementing an order to collect taxes on softwood lumber shipments in the United States. On September 9, 2015, the court granted part of Resolute's motion contesting the lawfulness of the USDA's "Softwood Lumber Checkoff" order imposing the tax. According to the court, the government's explanation of its decision to exclude certain softwood lumber manufacturers from paying or voting on the tax "strains credulity," and the USDA was either "hiding the ball" or else "ill informed" about the number of companies it had exempted. The court also reserved for another day Resolute's claims that the order violates the U.S. Constitution.
- Reported sales increased 1% to $590 million
- Changes in foreign currency exchange rates had a negative impact of 1% on the sales growth
- Recently acquired Mega Airless contributed approximately $18 million or 3% of the sales growth and approximately $0.02 per share to reported earnings per share
- Reported earnings per share were $0.82 compared to $0.83 reported in the prior year
- Reported earnings per share included a negative impact of approximately $0.01 (approximately $1.4 million pre-tax expense) related to the timing of costs in excess of insurance proceeds associated with a facility fire that occurred earlier in the year; previous third quarter earnings per share guidance excluded any potential impact related to the fire
- Adjusting to a comparable foreign currency environment ($0.01), prior year adjusted earnings per share were $0.82, or even with current period earnings per share
- Reported pre-tax earnings of $75 million were approximately 13% of net sales
- EBITDA of $123 million was app
Third Quarter Results
For the quarter ended September 30, 2016, reported sales increased 1% to $590 million from $586 million a year ago. Excluding the negative impact from changes in currency exchange rates and the positive impact from acquisitions, core sales decreased by approximately 1%.
Commenting on the quarter, Stephen Hagge, President and CEO, said, “Challenging market conditions made it difficult to achieve top line core growth for two of our business segments. Our Beauty + Home segment experienced sluggish demand in all regions other than Latin America, which again delivered strong sales growth. The beauty and personal care markets remain soft and while we believe there is much potential for the home care market, demand was very weak compared to the prior year. Our Food + Beverage segment was impacted by a decrease in sales to the beverage market, mainly in China, while sales to the food market increased. Our Pharma segment reported strong sales growth principally due to a significant increase in custom tooling sales and increased demand related to our consumer health care business. Sales to the prescription drug market increased slightly compared to very strong growth recorded a year ago while sales to the injectables market declined in the quarter due to the timing of certain validations of our new capacity in Europe. Despite the mix of market challenges, we were able to achieve a pre-tax earnings margin of approximately 13% and a strong consolidated EBITDA margin of approximately 21% in the quarter.”
AptarGroup reported earnings per share of $0.82 compared to $0.83 per share a year ago. Adjusting to achieve a comparable foreign exchange rate environment, comparable prior year third quarter earnings per share were $0.82, even with the current year.