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Bemis Company (BMS)
Bemis Co. cuts first quarter earnings due to rising costs.
Bemis Co. made an announcement last week that it expected first quarter-diluted earnings per share to be about 25 percent below its previous guidance. In line with their forecast Bemis Co. cut its earnings forecast by 25% Monday, despite an expected rise in sales, as the packaging company said it could not stay ahead of the rapid rise in resin prices in late 2004 and early 2005.
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Based upon preliminary results reported after the close of the quarter, while flexible packaging net sales excluding acquisitions is expected to increase about 7 percent compared to the first quarter of 2004, operating profit in the flexible packaging business segment is well below original expectations. Bemis will announce its first quarter 2005 results in a news release that will be available to the media and on the Bemis website on Thursday, April 21, before the market opens
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The Minneapolis-based company said the first quarter was normally its weakest period for both sales and operating profit and it expected profit trends to improve through the balance of the year. Analysts said Monday they were puzzled as to why Bemis couldn't keep up with the raw material price increases, given that it passed through resin price hikes to its customers throughout 2004 and that resin prices were not rising as fast in the first part of 2005 as in early 2004.
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President and Chief Executive Officer of Bemis Co. said “competition in our flexible packaging markets remains strong as customers seek to manage higher package prices. Our focus continues to be to utilize technology to deliver high quality products and superior customer service that achieves the most competitive total system cost and improves market share results for our customers." Bemis shares closed at $30.96 on the New York Stock Exchange on Friday.
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Profile |
Bemis Company, Inc. a principal manufacturer of flexible packaging products and pressure sensitive materials selling to customers throughout the United States, Canada, and Europe with a growing presence in Asia Pacific, South America, and Mexico. The primary market for its products is the food industry. Other markets include companies in chemical, agribusiness, medical, pharmaceutical, sanitary products, graphic industries, and other consumer goods.
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