Bemis Company Reports Third Quarter 2008 Results

NEENAH, Wis.—Bemis Company, Inc. reported quarterly diluted earnings of $0.44 per share for the third quarter, ended September 30, 2008, a 10 percent increase compared to $0.40 per share for the third quarter of 2007.

Net sales increased to a record $984.3 million for the third quarter of 2008, an 8.7 percent increase from $905.7 million for the same period of 2007. Currency benefits contributed 2.9 percent to net sales for the quarter.

“We enjoyed strong sales growth this quarter in the key markets where we have been investing,” said Henry Theisen, Bemis’s president and chief executive officer. “We have also responded aggressively to the escalating input costs this year. In this challenging economic environment, attention to cost management and customer service is imperative. Our business teams are successfully navigating the current global market conditions and are prepared to meet the challenges ahead.”

Flexible packaging, which represented about 84 percent of total Bemis net sales during the quarter, reported net sales of $826.4 million in the third quarter, a 10.9 percent increase compared to net sales of $745.4 million for the third quarter of 2007. Currency related sales growth totaled 2.8 percent. Segment operating profit for the third quarter of 2008 was $82.4 million, or 10 percent of net sales. Segment operating profit for the third quarter of 2007 was $81.6 million, or 10.9 percent of net sales. Currency benefits added $1.5 million to operating profit in the third quarter of 2008. This quarter’s operating profit reflects the impact of higher input costs incurred in 2008.

Commenting on the flexible packaging segment results, Theisen said, “Healthy sales growth in our flexible packaging segment was driven by a combination of volume growth and price increases across the majority of our end markets. We recorded double-digit sales growth in nearly 60 percent of our markets, with sales declines limited to pet products, overwrap for bottled water, and confectionery and snack markets. Performance in our medical device packaging operations has improved after last year’s disruption from the start-up of new equipment and facilities. Our European teams continue to deliver improved operating results as they reap the benefits of customer acceptance of new product offerings and implement a World Class Manufacturing program. In this volatile global economic environment, we are aggressively responding to market conditions and will continue to work diligently to maintain our sales momentum and protect our operating profit.”