Bemis Company Announces New Reportable Business Segments
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 Packaging | 382.8 | 385.9 | 398.7 | 405.5 | ||||||||||||
Pressure Sensitive Materials | 135.7 | 142.2 | 145.5 | 136.8 | ||||||||||||
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 profit | 96.0 | 77.9 | 82.0 | 60.7 | ||||||||||||
Global Packaging | ||||||||||||||||
Operating profit before facility consolidation and other costs | 24.2 | 25.7 | 26.6 | 25.5 | ||||||||||||
Facility consolidation and other costs | (9.9 | ) | (7.3 | ) | (0.7 | ) | (8.6 | ) | ||||||||
Operating profit | 14.3 | 18.4 | 25.9 | 16.9 | ||||||||||||
Pressure Sensitive Materials | ||||||||||||||||
Operating profit before facility consolidation and other costs | 7.7 | 10.9 | 9.7 | 6.5 | ||||||||||||
Facility consolidation and other costs | — | — | — | (2.7 | ) | |||||||||||
Operating profit | 7.7 | 10.9 | 9.7 | 3.8 | ||||||||||||
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 reported | 12.4 | % | 9.9 | % | 10.7 | % | 8.3 | % | ||||||||
As adjusted | 13.9 | % | 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) | 9.9 | 7.3 | 0.7 | 8.6 | ||||||||||||
Acquisition-related integration costs (2) | 1.1 | 1.7 | 1.7 | 1.7 | ||||||||||||
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 reported | 3.8 | % | 4.8 | % | 6.6 | % | 4.2 | % | ||||||||
As adjusted | 6.7 | % | 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 reported | 5.7 | % | 7.7 | % | 6.7 | % | 2.8 | % | ||||||||
As adjusted | 5.7 | % | 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 Packaging | 1,650.1 | 1,461.6 | ||||||
Pressure Sensitive Materials | 575.8 | 567.1 | ||||||
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 profit | 315.0 | 346.7 | ||||||
Global Packaging | ||||||||
Operating profit before facility consolidation and other costs | 121.2 | 121.8 | ||||||
Facility consolidation and other costs | (8.6 | ) | — | |||||
Operating profit | 112.6 | 121.8 | ||||||
Pressure Sensitive Materials | ||||||||
Operating profit before facility consolidation and other costs | 36.1 | 33.0 | ||||||
Facility consolidation and other costs | (2.7 | ) | — | |||||
Operating profit | 33.4 | 33.0 | ||||||
General corporate expenses | (92.8 | |||||||
