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Aptargroup Achieves Record Earnings on Solid Growth Across All Segments

^{Published on 2010-10-20 14:11:02 - Market Wire}
 

CRYSTAL LAKE, Ill.--([ BUSINESS WIRE ])--Aptargroup, Inc. (NYSE:ATR) today reported all-time high quarterly earnings per share. Also, the Board of Directors today declared a quarterly cash dividend of $.18 per share.

Third Quarter 2010 Summary

• Strong first half momentum continued in third quarter
• Broad-based growth reported across all segments
• Reported diluted earnings per share increased 42% to all-time record $.68
• Sales excluding currency effects rose 14%
• Improved capacity utilization contributed to earnings growth

THIRD QUARTER RESULTS

For the quarter ended September 30, 2010, reported sales increased 9% to $517.5 million from $473.7 million a year ago despite the negative effects of changes in currency rates.

Commenting on the quarter, Peter Pfeiffer, President and CEO, said, aThis was another strong broad-based quarter for our Company. Each of our business segments reported improved sales and income over the prior year. In particular, our Beauty & Home and Closures segments each posted double digit sales growth rates. Our Pharma segment also contributed to the strong quarterly results with increased sales over the prior year. Year over year demand increased in each of the end markets we serve, with notable increases coming from the fragrance/cosmetic and food/beverage markets.

Pfeiffer continued, aThe strong demand, which was a continuation of the growth over the prior year that we experienced in the first half of the year, resulted in high volume levels and improved capacity utilization. Operating income rose to $71.1 million, up 34% over the prior year level of $52.9 million (which included approximately $2.6 million of consolidation/severance expenses). Reported diluted earnings per share increased 42% to a record $.68 per share, compared to $.48 per share in the prior year. Prior year earnings per share included the negative effect of $.03 per share from charges related to our consolidation/severance program.a

YEAR-TO-DATE RESULTS

Pfeiffer stated, aWe are particularly pleased that our businesses across the board have continued to perform well through the first nine months of the year. Sales to each of the end markets we serve increased over the prior year. This success is attributable to our commitment to innovation, our reputation as a reliable and stable partner, and ultimately, the value we bring to our customersa™ brands.a

Year-to-date sales increased 15% to $1.5 billion from $1.3 billion a year ago. Changes in exchange rates had no effect on the year-to-date sales. Operating income increased to $206.8 million, up 46% from $141.5 million a year ago (which included approximately $5.7 million of consolidation/severance expenses). Reported diluted earnings per share increased 50% to $1.90 per share compared to $1.27 per share a year ago. Prior year earnings per share included a negative effect of $.05 per share from charges related to the Companya™s consolidation/severance program.

OUTLOOK

Pfeiffer commented, aLooking forward, we are coming up against a more difficult comparison to a record fourth quarter of last year that was influenced by rebounding markets and the strong euro relative to the dollar. Today, the markets are returning to more normal patterns and the euro is in a weaker position than a year ago. We remain confident that our diverse business model will continue to be a buffer should there be any deceleration to the recent economic recoveries in the U.S. and Europe. We currently expect fourth quarter diluted earnings per share to be in the range of $.53 to $.58 per share compared to $.52 per share reported last year. Last yeara™s earnings per share included the negative effect of $.02 per share from charges related to our consolidation/severance program.a

CASH DIVIDEND AND SHARE REPURCHASE PROGRAM

The Board of Directors declared a quarterly dividend of $.18 per share, payable November 24, 2010 to shareholders of record as of November 3, 2010. Also during the quarter, the Company repurchased approximately 600,000 shares of common stock for approximately $25.8 million leaving approximately 2.3 million shares authorized for repurchase at the end of the third quarter.

OPEN CONFERENCE CALL

There will be a conference call on Thursday,October 21, 2010 at 8:00 a.m. CDT to discuss the Companya™s third quarter results for 2010. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at [ www.aptar.com ]. Replay of the conference call can also be accessed on the Investor Relations page of the web site.

Aptargroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. Aptargroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America. For more information, visit the Aptargroup web site at [ www.aptar.com ].

This press release contains forward-looking statements.Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on managementa™s beliefs as well as assumptions made by and information currently available to management.Accordingly, Aptargroupa™s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, economic, environmental or political conditions in the various markets and countries in which Aptargroup operates, changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; fluctuations in the cost of raw materials, components and other input costs; the Companya™s ability to increase prices, contain costs and improve productivity; the Companya™s ability to successfully implement its strategic realignment; changes in capital availability or cost, including interest rate fluctuations; the competitive marketplace; fiscal and monetary policy; changes in foreign currency exchange rates; direct or indirect consequences of acts of war or terrorism; and labor relations.For additional information on these and other risks and uncertainties, please see Aptargroupa™s filings with the Securities and Exchange Commission, including its Form 10-Ka™s and Form 10-Qa™s. Readers are cautioned not to place undue reliance on forward-looking statements.Aptargroup undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.