Second Quarter 2017 Summary
• Reported sales were in line with the prior year
• Excluding the negative impact from changes in foreign currency exchange rates, core sales increased 1% as robust core sales growth in the Pharma and Food + Beverage segments offset a decline in Beauty + Home
• Reported net income (11% of net sales) increased to $65 million (+10%) primarily due to a lower effective tax rate
• EBITDA (20% of net sales) decreased to $124 million (-7%) primarily due to decreases in business in certain markets and higher raw material costs
• Reported earnings per share were $1.01 compared to $0.91 reported in the prior year (+11%) and $0.90 in the prior year when adjusting for changes in currency exchange rates (+12%)
• Current period earnings per share included certain tax benefits equivalent to $0.09 per share related to stock-based compensation and $0.05 per share primarily related to the Company’s planned cash repatriation activities
Commenting on the quarter, Stephan Tanda, President and CEO, said, “Our Pharma and Food + Beverage segments performed very well in the quarter with growth across each of their respective markets. Our Beauty + Home segment had another challenging quarter with decreased product sales across each end market and lower custom tooling sales. In Brazil we are feeling the effects of the difficult local economic condition. We also experienced operational challenges at a facility that produces decorative components sold to the beauty market and this, along with higher raw material costs, negatively impacted the segment’s profitability. We are moving forward with initiatives to return this segment to core growth while we work to improve operational efficiencies.”
Aptar’s reported earnings per share increased 11% to $1.01 compared to $0.91 reported a year ago. Prior year adjusted earnings per share, which adjusts for comparable exchange rates, would have been $0.90. Current period earnings per share included approximately $0.14 related to certain tax benefits.
Year-to-Date Results
For the six months ended June 30, 2017, reported sales increased 1% to $1.22 billion from $1.20 billion a year ago. Core sales, which exclude the negative impact from changes in currency exchange rates and the positive impact from acquisitions, increased approximately 2%.
Tanda commented on the year-to-date results, “It’s been a mixed first half for our Beauty + Home segment with positive growth in the first quarter being more than offset by a difficult second quarter. Our Pharma segment has grown consistently and our Food + Beverage segment has performed well despite the continued difficult comparisons to the prior year for our beverage business in Asia.”
For the six months year-to-date, Aptar’s reported earnings per share increased 15% to $1.81 compared to $1.58 reported a year ago. Prior year adjusted earnings per share, which adjusts for costs related to the Mega Airless acquisition and comparable exchange rates, would have been $1.64. The six months year-to-date earnings per share included approximately $0.18 related to certain tax benefits.
more detail at: http://investors.aptar.com/phoenix.zhtml?c=109617&p=irol-newsArticle&ID=2289720