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AptarGroup Reports Record Third Quarter Results;; Expands Presence in India

^{Published on 2011-10-26 14:18:04 - Market Wire}
 

CRYSTAL LAKE, Ill.--([ BUSINESS WIRE ])--AptarGroup, Inc. (NYSE:ATR) today reported record third quarter results and announced an acquisition and new facility in India.

Third Quarter 2011 Summary

• Reported sales rose 16% to a third quarter record of $601 million
• Sales before currency effects grew 10%
• All three segments continued strong core sales growth
• Beauty + Home and Food + Beverage segment income margins were pressured
• Reported diluted earnings per share increased 6% to a third quarter record of $.72
• Presence in India expanding with post-quarter acquisition and new Pharma facility construction

THIRD QUARTER RESULTS

Reported sales increased 16% to $601.2 million from $517.5 million a year ago. Changes in foreign currency exchange rates contributed 6%.

Commenting on the quarter, Peter Pfeiffer, President and CEO, said, aI am pleased to report we achieved record third quarter results. Sales were driven by core growth from each of our segments and positive currency translation effects. Particularly strong increases in sales were recorded by our Pharma and Food + Beverage segments. Our Pharma segment experienced strong demand from consumer health care and prescription drug customers for our industry-leading delivery solutions. Our Food + Beverage segmentas sales rose due to increased demand for our unique dispensing closures for beverage products as well as the continued success of several food launches by key customers. Our Beauty + Home segmentas sales grew over the prior year primarily due to increased demand from the personal care, fragrance/cosmetic and household markets.a

Pfeiffer continued, aWe achieved record third quarter earnings per share of $.72 mainly due to the strength of our Pharma segment. Our Beauty + Home segmentas income declined compared to the prior year due to product mix, certain underutilized capacity, and higher professional fees. These negative effects, however, were more than offset by an increase in our Pharma segmentas income that was driven by strong sales volumes across all products and markets. While our Food + Beverage segmentas income increased over the prior year, it was negatively affected by higher structure costs for this new segment as well as start-up costs related to our new U.S. facility.a

YEAR-TO-DATE RESULTS

Pfeiffer stated, aThe first nine months of this year were very strong. Year-to-date reported sales grew 16% with core sales accounting for 10% of the growth and changes in currency exchange rates contributing the other 6%. The strong core sales growth was driven by growth in every segment. Year-to-date reported sales reached approximately $1.8 billion, up from $1.5 billion a year ago. Reported diluted earnings per share increased 9% to $2.08 per share compared to $1.90 per share a year ago.

EXPANSION IN INDIA

Earlier this month, AptarGroup acquired T.K.H. Plastics Private Limited (aTKHa), a leading provider of injection molded dispensing closures in India, for approximately $17 million in cash and $1 million in assumed debt. TKH has been serving the local Indian personal care, food, and beverage markets since 2000 and has been a licensee of AptarGroupas dispensing closure products since 2006. TKH had annual revenues of approximately $8 million in the most recent fiscal year.

In addition, AptarGroupas new pharmaceutical device facility in Mumbai is nearing completion. This facility, which is expected to be fully operational at the beginning of 2012, will provide clean-room capacity to serve AptarGroupas customers in the region.

Commenting on the developments in India, Pfeiffer said, aThese steps are part of our strategy to expand our footprint in the region. We recognize that India is a significant and growing market. The acquisition allows us to better serve our personal care, food, and beverage customers and the clean-room facility will enable us to provide locally produced delivery devices to our pharmaceutical customers.a

OUTLOOK

Pfeiffer commented, aWe are seeing some caution on the part of certain customers as we head into the end of the year, primarily due to global economic uncertainties. We believe this situation is temporary and that customers are assessing inventory levels after a relatively active past 12 months. Some customers are also intensifying price pressures in light of an unstable economic outlook, particularly in the U.S. and Europe. When we look at the variety of project activity, the strength and focus of our realigned organization, our broad geographic presence, and our strong balance sheet, we are encouraged as we look ahead to 2012. Currently, we expect fourth quarter diluted earnings per share to be in the range of $.57 to $.62 per share compared to our record fourth quarter $.59 per share in the prior year.a

CASH DIVIDEND AND SHARE REPURCHASE PROGRAM

The Board of Directors declared on October 19, 2011, a quarterly dividend of $.22 per share, payable November 30, 2011 to shareholders of record as of November 9, 2011.

During the quarter, the Company repurchased 800,000 shares of common stock for approximately $38.8 million, leaving approximately 4.1 million shares authorized for repurchase at the end of the third quarter.

OPEN CONFERENCE CALL

There will be a conference call on Thursday,October 27, 2011 at 9:00 a.m. CT to discuss the Companyas third quarter results for 2011. 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 managementas beliefs as well as assumptions made by and information currently available to management.Accordingly, AptarGroupas 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 Companyas ability to increase prices, contain costs and improve productivity; 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 AptarGroupas filings with the Securities and Exchange Commission, including its Form 10-Kas and Form 10-Qas. 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.