AWPPW Local 675 and WestRock will be returning to the bargaining table November 6 and 7 to resume negotiations after union members rejected the Company's initial offer for a new Labor Agreement by 94%. Major items cited by the Union as causes for the overwhelming rejection by the membership include proposed seniority changes, increased medical cost, elimination of premium pay provisions and maintenance redesign. AWPPW Local President Bob Booth says "While the WestRock Covington mill consistently produces huge profits every year, WestRock refuses to treat the workforce fairly. No matter how dedicated and hardworking we all are and no matter how much money we make for WestRock the company wants concessions." Click Read More below for additional information.
Bemis Company, Inc. (NYSE:BMS) today reported financial results for its first quarter ended March 31, 2018. Refer to the reconciliation of Non-GAAP measures detailed in the attached schedule, including adjusted earnings per share, adjusted EBITDA, and net debt.
“We delivered first quarter earnings above our most recent expectations, driven by improving operations and the benefits of Agility, which is our plan to fix, strengthen, and grow our business,” said William F. Austen, Bemis Company’s President and Chief Executive Officer. “Compared to the prior first quarter, profits increased in our U.S. segment due to the benefits of Agility and operational improvements. Profits increased in our Rest of World segment due to growth and strength in our healthcare packaging business. Profits were down in our Latin American segment due to the impact of the economic environment in Brazil compared to one year ago, as anticipated. We continue to take action in Latin America to drive margin expansion throughout the remainder of 2018.”
Austen continued, “We are maintaining our full year 2018 guidance. Through Agility, we are making progress to improve our business. We continue to execute our plan to create a more agile, streamlined, and efficient business.”
U.S. Packaging net sales of $666.0 million for the first quarter of 2018 represented an increase of 2.6 percent compared to the same period of 2017. The increase in net sales was driven primarily by sales price and mix partially offset by lower unit volumes of approximately 1 percent. Lower unit volumes were driven by the Company’s planned shutdown of its Shelbyville, Tennessee facility.
U.S. Packaging operating profit increased to $87.2 million in the first quarter of 2018, or 13.1 percent of net sales, compared to $83.5 million, or 12.9 percent of net sales, in 2017. The increase in U.S. Packaging operating profit was driven by improved operations and cost savings from the Company’s Agility plan.
Latin America Packaging
Latin America Packaging net sales of $169.4 million for the first quarter of 2018 represented a decrease of 4.8 percent compared to the same period of 2017. Currency translation decreased net sales by 4.6 percent. Organic sales were approximately flat reflecting increased selling prices offset by decreased unit volumes of approximately 8 percent. As anticipated, lower unit volumes for the first quarter were driven by the economic environment in Brazil that incrementally degraded starting in the second quarter of the prior year.
Latin America Packaging operating profit for the first quarter was $8.0 million, compared to $13.6 million for the same period in 2017. Compared to the prior year, lower profits in Latin America Packaging were driven by the impacts of the challenging economic environment in Brazil, including lower unit volumes.
Rest of World Packaging
Rest of World Packaging net sales of $192.0 million for the first quarter of 2018 represented an increase of 13.9 percent compared to the same period of 2017. Currency translation increased net sales by 8.8 percent. The acquisition of Evadix increased net sales by 1.1 percent. Organic sales growth of 4.0 percent reflects increased unit volumes across the segment averaging approximately 12 percent partially offset by sales price and mix of products sold. Higher sales in the Company’s Asia-Pacific business were the primary driver of unfavorable sales price and mix in the Rest of World segment for the quarter.
Rest of World Packaging operating profit increased to $16.5 million in the first quarter of 2018, or 8.6 percent of net sales, compared to $13.6 million, or 8.1 percent of net sales, in 2017. Improvement in Rest of World Packaging operating profit was driven primarily by increased sales volume in the Company’s healthcare packaging business.
more detail at: http://investors.bemis.com/press-release/bemis-company-reports-first-quarter-results-and-maintains-full-year-2018-guidance