Bemis Company Announces New Reportable Business Segments

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Bemis Company Announces New Reportable Business Segments

NEENAH, Wis.--(BUSINESS WIRE)-- Bemis Company, Inc. (NYS: BMS) today announced that it has realigned its segment reporting. As a result, Bemis will report business segment information for three reportable segments as follows: U.S. Packaging, Global Packaging, and Pressure Sensitive Materials. The expansion from two to three reportable segments reflects the separation of the Flexible Packaging business segment into U.S. Packaging and Global Packaging business segments. The Pressure Sensitive Materials business segment is unchanged.

The U.S. Packaging segment represents all food, consumer, and industrial products packaging-related manufacturing operations located in the United States. The Global Packaging business segment includes all Bemis' packaging-related manufacturing operations located outside of the United States as well as our global medical device and pharmaceutical packaging manufacturing operations.


For detailed financial information on the Company's new reportable segments, please refer to the following tables, recasting previously issued information into the new format. Bemis will be reporting under this new business segment structure during its fourth quarter and full year 2012 earnings call scheduled for January 31, 2013 at 10:00 a.m. (ET).

ABOUT BEMIS COMPANY, INC.
Bemis Company, Inc. is a major supplier of packaging and pressure sensitive materials used by leading food, consumer products, healthcare, and other companies worldwide. Founded in 1858, the Company is included in the S&P 500 index of stocks and reported 2011 net sales of $5.3 billion. The Company's packaging business has a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing, and converting. Headquartered in Neenah, Wisconsin, Bemis employs approximately 20,000 individuals worldwide. More information about the Company is available at our website, www.bemis.com.

The changes to the business segments have no effect on the historical consolidated results of operations. Prior period segment results have been conformed to the new business segment presentation. A summary of the Company's business activities recast in these three new business segments follows:

  Three months ended
Business Segments (in millions)September 30, 2012 June 30, 2012 March 31, 2012 December 31, 2011
(unaudited)
Sales including intersegment sales:
U.S. Packaging$780.7$794.0$770.6$736.9
Global Packaging382.8385.9398.7405.5
Pressure Sensitive Materials135.7142.2145.5136.8
 
Intersegment sales:
U.S. Packaging(5.8)(5.4)(5.5)(4.2)
Global Packaging(5.3)(3.7)(4.3)(4.5)
Pressure Sensitive Materials(0.3)(0.3)(0.2)(0.3)
Total net sales$1,287.8 $1,312.7 $1,304.8 $1,270.2 
 
U.S. Packaging
Operating profit before facility consolidation and other costs$107.5$90.2$89.6$87.0
Facility consolidation and other costs(11.5)(12.3)(7.6)(26.3)
Operating profit96.077.982.060.7
 
Global Packaging
Operating profit before facility consolidation and other costs24.225.726.625.5
Facility consolidation and other costs(9.9)(7.3)(0.7)(8.6)
Operating profit14.318.425.916.9
 
Pressure Sensitive Materials
Operating profit before facility consolidation and other costs7.710.99.76.5
Facility consolidation and other costs   (2.7)
Operating profit7.710.99.73.8
 
General corporate expenses(28.1)(24.4)(29.1)(25.9)
General corporate facility consolidation and other costs   (0.8)
Net general corporate expenses(28.1)(24.4)(29.1)(26.7)
    
Operating income$89.9 $82.8 $88.5 $54.7 
 

Reconciliation of GAAP to Non-GAAP Operating Profit and Operating Profit as a Percentage of Net Sales by Segment

 Three months ended
(in millions)September 30, 2012 June 30, 2012 March 31, 2012 December 31, 2011
(unaudited)
U.S. Packaging
Net sales $774.9 $788.6 $765.1 $732.7 
 
Operating profit as reported$96.0$77.9$82.0$60.7
 
Non-GAAP adjustments:
Facility consolidation and other costs (1) 11.5 12.3 7.6 26.3 
 
Operating profit as adjusted $107.5 $90.2 $89.6 $87.0 
 
Operating profit as a percentage of net sales
As reported12.4%9.9%10.7%8.3%
As adjusted13.9%11.4%11.7%11.9%
 
Global Packaging
Net sales $377.5 $382.2 $394.4 $401.0 
 
Operating profit as reported$14.3$18.4$25.9$16.9
 
Non-GAAP adjustments:
Facility consolidation and other costs (1)9.97.30.78.6
Acquisition-related integration costs (2)1.11.71.71.7
Pension curtailment (3)    (2.7)
 
Operating profit as adjusted $25.3 $27.4 $28.3 $24.5 
 
Operating profit as a percentage of net sales
As reported3.8%4.8%6.6%4.2%
As adjusted6.7%7.2%7.2%6.1%
 
Pressure Sensitive Materials
Net sales $135.4 $141.9 $145.3 $136.5 
 
Operating profit as reported$7.7$10.9$9.7$3.8
 
Non-GAAP adjustments:
Facility consolidation and other costs (1)    2.7 
 
Operating profit as adjusted $7.7 $10.9 $9.7 $6.5 
 
Operating profit as a percentage of net sales
As reported5.7%7.7%6.7%2.8%
As adjusted5.7%7.7%6.7%4.8%
 
(1) Facility consolidation and other costs includes employee-related costs, accelerated depreciation, write down of equipment and other costs related to the Company's facility consolidation program.
(2)Acquisition-related integration costs include earnout payments treated as compensation expense related to the Mayor Packaging acquisition.
(3)Pension curtailment includes a gain associated with the Company's Mexican pension plan.
 
 Twelve Months Ended December 31,
Business Segments (in millions)2011 2010
(unaudited)
Sales including intersegment sales:
U.S. Packaging$3,129.2$2,835.2
Global Packaging1,650.11,461.6
Pressure Sensitive Materials575.8567.1
 
Intersegment sales:
U.S. Packaging(18.5)(13.6)
Global Packaging(12.9)(10.8)
Pressure Sensitive Materials(1.0)(4.5)
Total net sales$5,322.7 $4,835.0 
 
U.S. Packaging
Operating profit before facility consolidation and other costs$341.3$346.7
Facility consolidation and other costs(26.3) 
Operating profit315.0346.7
 
Global Packaging
Operating profit before facility consolidation and other costs121.2121.8
Facility consolidation and other costs(8.6) 
Operating profit112.6121.8
 
Pressure Sensitive Materials
Operating profit before facility consolidation and other costs36.133.0
Facility consolidation and other costs(2.7) 
Operating profit33.433.0
 
General corporate expenses(92.8 Read Full Story

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