Bemis lowers 2012 expectations after ‘challenging’ second quarter
The firm, which manufactures and markets flexible packaging and pressure sensitive materials, recorded net sales of $1.3bn for the second quarter of 2012 – a 4.2% decrease on Q2 2011.
Its flexible packaging segment, which has a presence in a number of food categories including dairy, bakery and frozen food, recorded net sales of $1.2bn for the period April to June 2012 – a decrease of 3.9% on the same period in 2011.
Bemis’ pressure sensitive materials segment also reported a drop in net sales for the quarter. It recorded $141.9m for Q2 – down on the $151.5m recorded in the same period in 2011.
“Performance in the second quarter was as expected, with the negative effects of soft volume levels more than offset by increased pricing and improved sales mix,” said Bemis president and CEO, Henry Theisen.
Theisen added that despite a challenging quarter for its flexible packaging business, Bemis “enjoyed modest growth” in its high barrier food applications.
The firm has, however, adjusted its sales expectations for the year in-line with its quarterly results.
“In this challenging year, we continue to focus on prudent cost management and efficient implementation of our facility consolidation program,” he added.
“We have lowered our expectation for sales volume for the remainder of the year and adjusted guidance to reflect both lower volumes and weaker foreign currency exchange rates.”
“Our 2012 capital expenditure plan supports our key high barrier product growth initiatives in China, Brazil, and North America, but we have reduced our expected investments in other areas in light of current volume trends.”
Elsewhere, Mettler-Toledo International reported a 6% sales increase for Q2 2012.
The US-based firm, which supplies end-of–line inspection systems used in production and packaging for food, recorded sales of $570.3m for the second quarter of 2012 – an increase on the $561.1m recorded in Q2 2011.
Sales increased 6% in the Americas, 14% in Asia/Rest of the World, while sales in Europe dropped by 2%.
“Market conditions have become more challenging in the last few months. In addition, we will continue to face strong sales growth comparisons from the prior year. We have initiated cost control measures in light of current economic conditions but continue to invest for future growth,” said Mettler-Toledo president and CEO, Olivier Filliol.