DOW JONES NEWSWIRES
Bemis Co.'s (BMS) fourth-quarter profit more than doubled as the
food-and-beverage packaging company's $1.2 billion March
acquisition of Alcan Packaging Food Americas from Rio Tinto PLC
(RTP, RIO.LN) boosted its top line.
But the company gave cautious guidance, forecasting per-share
earnings of 50 cents to 55 cents for the current quarter and $2.33
to $2.48 a share for the year. Analysts polled by Thomson Reuters
most recently projected 56 cents and $2.47 a share for the current
quarter and year respectively.
Package and container makers have been reporting mixed results
of late. Packaging Corp. of America (PKG) last week reported a 6.5%
drop in profit and a weak current-quarter outlook. And Sealed Air
Corp.'s (SEE) profit also declined, though that was largely on a
debt-redemption charge, while revenue rose across its business
lines and margins edged up.
Packaging makers that serve the food industry, such as Bemis,
have fared better than those geared to other sectors during the
recession, as consumers ate more meals at home.
Bemis reported a profit of $53.3 million, or 48 cents a share,
up from $26.2 million, or 23 cents, a year earlier. Excluding
acquisition and other charges, earnings from continuing operations
rose to 49 cents from 45 cents. In October, the company projected
earnings of 48 cents to 53 cents, below analysts' estimates at the
time.
Net sales jumped 38% to $1.25 billion on acquisition
contributions. Analysts polled by Thomson Reuters expected $1.27
billion.
Gross margin narrowed to 18.5% from 19.6%.
Net sales climbed 44% at its flexible-packaging unit, its
largest top-line contributor, as earnings increased 41%.
Shares closed at $32.55 on Monday and were inactive
premarket.
-By Matt Jarzemsky and Lee Roberts, Dow Jones Newswires;
212-416-2240; matthew.jarzemsky@dowjones.com