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Bemis Reports on Q2 and Latin America Restructuring

NEENAH, W | Bemis Company reports second quarter adjusted diluted earnings per share were $0.67 in 2016 ($0.53 on a GAAP basis).

On April 29, 2016, company acquired the medical device packaging operations and related value-added services of SteriPack Group.

During the second quarter of 2016, the company initiated a restructuring program in its Global Packaging segment to improve efficiencies and reduce fixed costs. It will close four facilities in Latin America by the middle of 2017. A portion of these closures reflect the company’s synergy plan related to the recent Emplal acquisition to optimize its footprint. Total restructuring costs for this program are estimated to be in the range of $28 to $30 million (at current exchange rates), $13.3 million of which was booked during the second quarter of 2016. Cost reductions from the program are expected to reach the full run rate of approximately $16 million (at current exchange rates) annually during 2018.

William F. Austen says, “Our decision to consolidate facilities in Latin America reflects our desire to be good stewards of our expanded resources. The modern and efficient facilities we acquired with the Emplal acquisition provide the capacity that allows us to move some production from our legacy locations. As the economic environment in Latin America continues to challenge consumers, as well as our customers in the region, the benefits of this consolidation will help offset those headwinds and will keep us on track in achieving our long-term margin targets in the Global Packaging segment.”

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