Bemis Company Inc

IndustrialsIndustrial Goods & ServicesGeneral Industrials
    
    

    


NEENAH, WISCONSIN, July 27, 2011 - Bemis Company, Inc. (NYSE-BMS) today reported
its 2011 second quarter results:

Highlights of the second quarter 2011:
  * Net sales increased by 8 percent to a record $1.4 billion.
  * Diluted earnings per share was $0.51, in line with management's second
    quarter 2011 guidance of $0.48 to $0.54 per share.
  * Flexible packaging segment operating profit continues to be negatively
    impacted by higher raw material costs in advance of selling price
    adjustments.
  * Cash provided by operating activities totaled $91 million.
  * Repurchases of Bemis common stock totaled 2.1 million shares.
  * Management established earnings guidance for the third quarter of 2011 at
    $0.56 to $0.61 per share, and total year 2011 earnings guidance was lowered
    and narrowed to $2.08 to $2.18 per share, reflecting the total expected
    impact of softening demand and stabilizing raw material costs during the
    second half of the year.


"Results for the second quarter of 2011 were in line with our expectations,"
said Henry Theisen, Bemis Company's President and Chief Executive Officer.
 "Profit margins were lower this quarter as a result of raw material cost
inflation that continued through the month of May.  While North American sales
volumes have been keeping pace with the levels of 2010, we continue to be
cautious about expectations for the second half of 2011 in light of inflationary
pressures on our operating margins and consumer spending levels.  Our guidance
for the remainder of the year assumes stabilizing raw material costs during the
second half of this year along with softening volume levels."

CONSOLIDATED RESULTS
Total Bemis net sales were $1.4 billion for the second quarter of 2011, a 7.9
percent increase from $1.3 billion for the same period of 2010.  Sales growth
included a 3.4 percent increase from currency translation.

Diluted earnings per share for the second quarter of 2011 was $0.51 compared to
adjusted diluted earnings from continuing operations of $0.58 per share ($0.52
per share GAAP diluted earnings from continuing operations, as detailed in the
attached schedule, "Reconciliation of Non-GAAP Data") reported in the same
quarter of 2010. Performance for the second quarter of 2011 was negatively
impacted by increases in the cost of specialty resin raw materials which
continued through the first five months of 2011.

FLEXIBLE PACKAGING BUSINESS SEGMENT
Bemis' flexible packaging business segment reported net sales of $1.2 billion.
 This represents an 8.1 percent increase compared to net sales of $1.1 billion
for the second quarter of 2010.  Currency effects increased net sales by 3.0
percent.  The remaining sales growth reflected higher selling prices compared to
the second quarter of 2010.  Segment operating profit for the second quarter of
2011 was $116.3 million, or 9.5 percent of net sales, compared to adjusted
operating profit of $130.1 million, or 11.5 percent of net sales (Operating
profit on a GAAP basis was $122.7 million, or 10.9 percent of net sales, as
detailed in the attached schedule: "Reconciliation of Non-GAAP Data"), for the
same period of 2010.  The effect of currency translation increased operating
profit in the second quarter of 2011 by $2.6 million compared to the same
quarter of 2010.  Dramatic raw material cost increases that occurred during the
first quarter of 2011 negatively impacted operating profit for the second
quarter of 2011.

Commenting on the flexible packaging segment results, Theisen said, "As
expected, raw material cost increases continued to negatively impact our
operating profit this quarter in advance of selling price adjustments.  In
addition, we experienced modestly lower sales volumes toward the end of the
second quarter compared to the strong volume levels that we generated during the
same period of 2010.  Food price inflation has led to retail consumer price
increases, which may negatively impact consumer demand for some packaged food
products in the future.  In our Latin American business, while we are pleased to
report improved operating performance in our Mexico operations, regional results
are being negatively impacted by raw material cost increases, substantial
inflation in Argentina, and lower customer demand levels as the strong Brazilian
currency negatively impacts the market for our customers' exported products.  We
expect third quarter selling price adjustments to improve profit levels that
were negatively impacted by raw material cost increases that began late last
year and started to stabilize in June.  We also expect continued
commercialization of new products during the second half of 2011 to partially
offset the impact of softer demand predicted by our customers."

PRESSURE SENSITIVE MATERIALS BUSINESS SEGMENT
Net sales from the pressure sensitive materials business segment for the second
quarter of 2011 were $151.5 million, a 5.8 percent increase compared to $143.2
million in the second quarter of 2010.  Currency effects increased net sales by
5.7 percent.  For the second quarter of 2011, operating profit totaled $11.8
million, or 7.8 percent of net sales, compared to operating profit for the
second quarter of 2010 of $11.7 million, or 8.2 percent of net sales.  Currency
effects increased operating profit for the quarter by $0.8 million.

OTHER OPERATING (INCOME) EXPENSE, NET
For the second quarter of 2011, other operating income and expense included $5.4
million of fiscal incentive income, an increase of $1.2 million compared to $4.2
million for the second quarter of 2010.  Fiscal incentives are associated with
net sales and manufacturing activities in certain South American operations and
are included in flexible packaging segment operating profit.

CAPITAL STRUCTURE AND CASH FLOW
Total debt as of June 30, 2011 was $1.5 billion, an increase of $196 million
from the balance of $1.3 billion at December 31, 2010.  Increased levels of
working capital during the first half of 2011 reflect higher raw material costs
in inventory and subsequently higher selling prices in accounts receivable.
 During the six months ended June 30, 2011, Bemis purchased 3.8 million shares
of Bemis common stock for $123.1 million.  The remaining share repurchase
authorization as of June 30, 2011 was 5.7 million shares.

2011 EARNINGS OUTLOOK
Management expects adjusted diluted earnings per share for the third quarter of
2011 to be in the range of $0.56 to $0.61.  In light of the anticipated
softening demand levels for the second half of 2011 and the assumption that raw
material costs will remain relatively stable for the remainder of this year,
management expects adjusted diluted earnings per share for the full year 2011 to
be in the range of $2.08 to $2.18 per share.  Capital expenditures are expected
to be approximately $125 million for the full year 2011.

PRESENTATION OF NON-GAAP INFORMATION
This press release refers to non-GAAP financial measures: adjusted operating
profit, adjusted operating profit as a percentage of net sales, and adjusted
diluted earnings per share from continuing operations.  These non-GAAP financial
measures adjust for factors that are unusual or unpredictable.  These measures
exclude the impact of certain amounts related to acquisition related financing
costs, acquisition related professional and legal fees, and purchase accounting
adjustments for inventory and order backlog.  This adjusted information should
not be construed as an alternative to results determined in accordance with
accounting principles generally accepted in the United States of America (GAAP).
 It is provided solely to assist in an investor's understanding of the impact of
these items on the comparability of the Company's operations.

FORWARD LOOKING STATEMENTS
Statements in this release that are not historical, including statements
relating to the expected future performance of the Company, are considered
"forward-looking" and are presented pursuant to the safe harbor provisions of
the Securities Litigation Reform Act of 1995.  Such content is subject to
certain risks and uncertainties, including but not limited to future changes in
cost or availability of raw materials, our ability to adjust selling prices,
consumer buying patterns, changes in customer order patterns, the results of
competitive bid processes, costs associated with the pursuit of business
combinations, a failure in our information technology infrastructure or
applications, foreign currency fluctuations, changes in working capital
requirements, changes in government regulations, and the availability and
related cost of financing from banks and capital markets.  Actual future results
and trends may differ materially from historical results or those projected in
any such forward-looking statements depending on a variety of factors which are
detailed in the Company's regular SEC filings including the most recently filed
Form 10-K for the year ended December 31, 2010.

INVESTOR CONFERENCE CALL
Bemis Company, Inc. will webcast an investor telephone conference regarding its
second quarter 2011 financial results this morning at 10 a.m., Eastern Time.
 Individuals may listen to the call on the Internet atwww.bemis.com under
"Investor Relations."  Listeners are urged to check the website ahead of time to
ensure their computers are configured for the audio stream.  Instructions for
obtaining the required, free, downloadable software are available in a pre-event
system test on the site.

ABOUT BEMIS COMPANY, INC.
Bemis Company is a major supplier of flexible packaging and pressure sensitive
materials used by leading food, consumer products, healthcare, and other
companies worldwide.  Founded in 1858, the Company is included in the S&P 500
index of stocks and reported 2010 net sales of $4.8 billion.  The Company's
flexible packaging business has a strong technical base in polymer chemistry,
film extrusion, coating and laminating, printing, and converting.  Headquartered
in Neenah, Wisconsin, Bemis employs nearly 20,000 individuals worldwide.  More
information about the Company is available at our website, www.bemis.com.


Bemis Company, Inc.
One Neenah Center, 4th Floor
P.O. Box 669
Neenah, Wisconsin  54957-0669

For additional information please contact:

Melanie E. R. Miller
Vice President, Investor Relations and Treasurer
(920)527-5045

Kristine Pavletich
Public Relations Specialist
(920)527-5159



        BEMIS COMPANY, INC. AND SUBSIDIARIES

          CONSOLIDATED STATEMENT OF INCOME

      (in thousands, except per share amounts)

                    (unaudited)



                            Three Months Ended            Six Months Ended

                                 June 30,                     June 30,

                            2011           2010          2011          2010



Net sales                  $1,370,220     $1,270,215    $2,694,648    $2,291,944

Cost of products
sold                        1,136,244      1,039,896     2,230,819     1,875,784



Gross Profit                  233,976        230,319       463,829       416,160



Operating
expenses:

Selling, general,
and administrative
expenses                      122,723        112,743       248,898       219,730

Research and
development                     9,986          8,725        17,573        14,350

Other operating
(income) expense,
net                           (4,057)        (3,637)      (11,118)         4,799



Operating Income              105,324        112,488       208,476       177,281



Interest expense               18,110         18,540        36,446        36,677

Other non-
operating (income)
expense, net                    (346)            832         1,374       (2,207)



Income from
continuing
operations before
income taxes                   87,560         93,116       170,656       142,811



Provision for
income taxes                   32,000         33,500        62,300        51,400



Income from
continuing
operations                     55,560         59,616       108,356        91,411



Income from
discontinued
operations, net of
tax                                            1,961                       2,615



Net income                     55,560         61,577       108,356        94,026



Less: Net income
attributable to
noncontrolling
interests                       1,308          1,938         2,894         3,604



Net income
attributable to
Bemis Company,
Inc.                          $54,252        $59,639      $105,462       $90,422



Amounts
attributable to
Bemis Company,
Inc. :

Income from
continuing
operations, net of
tax                           $54,252        $57,678      $105,462       $87,807

Income from
discontinued
operations, net of
tax                                            1,961                       2,615

Net income
attributable to
Bemis Company,
Inc.                          $54,252        $59,639      $105,462       $90,422



Basic earnings per
share:

Income from
continuing
operations                      $0.51          $0.52         $0.98         $0.79

Income from
discontinued
operations                                      0.02                        0.02

Net income
attributable to
Bemis Company,
Inc.                            $0.51          $0.54         $0.98         $0.81



Diluted earnings
per share:

Income from
continuing
operations                      $0.51          $0.52         $0.98         $0.79

Income from
discontinued
operations                                      0.02                        0.02

Net income
attributable to
Bemis Company,
Inc.                            $0.51          $0.54         $0.98         $0.81



Cash dividends
paid per share                  $0.24          $0.23         $0.48         $0.46



Weighted average
shares outstanding
(includes
participating
securities):


Basic                         106,742        111,098       107,742       111,104


Diluted                       107,150        111,202       108,122       111,222







                      BEMIS COMPANY, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET

                             (dollars in thousands)

                                  (unaudited)



                                                          June 30,  December 31,

                       ASSETS                               2011        2010



Cash and cash equivalents                                   $72,733      $60,404

Accounts receivable, net                                    762,275      637,738

Inventories, net                                            740,376      673,863

Prepaid expenses and other current assets                   101,941       94,914

Total current assets                                      1,677,325    1,466,919



Property and equipment, net                               1,527,220    1,540,753



Goodwill                                                  1,033,032    1,013,697

Other intangible assets, net                                195,660      200,116

Deferred charges and other assets                            70,053       64,346

Total other long-term assets                              1,298,745    1,278,159



TOTAL ASSETS                                             $4,503,290   $4,285,831



                    LIABILITIES



Current portion of long-term debt                            $3,587       $2,941

Short-term borrowings                                        18,763            6

Accounts payable                                            581,427      548,042

Accrued salaries and wages                                   97,838      103,024

Accrued income and other taxes                               18,542       21,246

Total current liabilities                                   720,157      675,259



Long-term debt, less current portion                      1,460,218    1,283,525

Deferred taxes                                              175,543      158,289

Other liabilities and deferred credits                      207,911      241,326



TOTAL LIABILITIES                                         2,563,829    2,358,399



                       EQUITY



Bemis Company, Inc. shareholders' equity:

   Common stock issued (126,863,012 and 126,627,875
shares)                                                      12,686       12,663

Capital in excess of par value                              573,794      568,035

Retained earnings                                         1,804,975    1,751,908

Accumulated other comprehensive income                      162,664       91,117

Common stock held in treasury, 22,767,891 and
18,953,971 shares at cost                                 (667,242)    (544,100)

Total Bemis Company, Inc. shareholders' equity            1,886,877    1,879,623

Noncontrolling interests                                     52,584       47,809

TOTAL EQUITY                                              1,939,461    1,927,432



TOTAL LIABILITIES AND EQUITY                             $4,503,290   $4,285,831



                      BEMIS COMPANY, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS

                                 (in thousands)

                                  (unaudited)



                                                             Six Months Ended

                                                                 June 30,

                                                             2011       2010

Cash flows from operating activities

Net income                                                  $108,356     $94,026

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation and amortization                                112,097     101,784

Excess tax benefit from share-based payment
arrangements                                                   (885)     (2,863)

Share-based compensation                                       8,743       9,257

Deferred income taxes                                         10,220       2,334

Income of unconsolidated affiliated company                  (1,582)     (1,394)

(Gain) loss on sales of property and equipment                   954        (84)

Changes in working capital, excluding effect of
acquisitions                                               (130,767)    (70,777)

Net change in deferred charges and credits                  (24,212)     (3,571)



Net cash provided by operating activities                     82,924     128,712



Cash flows from investing activities

Additions to property and equipment                         (62,238)    (39,290)

Business acquisitions and adjustments, net of cash
acquired                                                    (16,206) (1,222,111)

Proceeds from sales of property and equipment                    683         853



Net cash used in investing activities                       (77,761) (1,260,548)



Cash flows from financing activities

Proceeds from issuance of long-term debt                       4,723      13,464

Repayment of long-term debt                                  (2,050)    (38,150)

Net borrowing of commercial paper                            173,250     233,619

Net borrowing of short-term debt                              17,574       4,143

Cash dividends paid to shareholders                         (51,693)    (51,105)

Common stock purchased for the treasury                    (123,142)

Excess tax benefit from share-based payment
arrangements                                                     885       2,863

Stock incentive programs and related withholdings            (3,676)    (13,315)



Net cash provided by financing activities                     15,871     151,519



Effect of exchange rates on cash and cash equivalents        (8,705)     (5,084)



Net increase (decrease) in cash and cash equivalents          12,329   (985,401)



Cash and cash equivalents balance at beginning of year        60,404   1,065,687



Cash and cash equivalents balance at end of period           $72,733     $80,286




              BEMIS COMPANY, INC. AND SUBSIDIARIES

               OPERATING PROFIT AND PRETAX PROFIT

                          (in millions)

                           (unaudited)



                                                   Three Months     Six Months
                                                      Ended           Ended

                                                     June 30,        June 30,

                                                  2011    2010     2011   2010





Flexible Packaging operating profit              $116.3    $122.7 $232.6  $215.0



Pressure Sensitive Materials operating
profit                                             11.8      11.7   21.7    18.3



General corporate expenses                       (22.8)    (21.9) (45.8)  (56.0)



Operating income                                  105.3     112.5  208.5   177.3



Interest expense                                 (18.1)    (18.5) (36.4)  (36.7)



Other non-operating income (expense), net           0.4     (0.9)  (1.4)     2.2



Income from continuing operations before
income taxes                                      $87.6     $93.1 $170.7  $142.8





             BEMIS COMPANY, INC. AND SUBSIDIARIES

               RECONCILIATION OF NON-GAAP DATA

           (in millions, except per share amounts)

                         (unaudited)



                                               Three Months
                                                   Ended       Six Months Ended

                                                 June 30,          June 30,

                                               2011     2010     2011     2010

Reconciliation of GAAP to Non-GAAP Operating
                   Profit

and Operating Profit as a Percentage of Net
              Sales by Segment



Flexible Packaging

   Net Sales                                 $1,218.7 $1,127.0 $2,398.0 $2,008.4



   Operating Profit as reported                 116.3    122.7    232.6    215.0



   Non-GAAP adjustments:

Purchase accounting for inventory and
order backlog (1)                                          3.5              15.4

Acquisition related integration costs
(4)                                                        3.9               3.9



   Operating Profit as adjusted                $116.3   $130.1   $232.6   $234.3



   Operating Profit as a percentage of
Net Sales

      As Reported                                9.5%    10.9%     9.7%    10.7%

      As Adjusted                                9.5%    11.5%     9.7%    11.7%





Pressure Sensitive Materials

   Net Sales                                   $151.5   $143.2   $296.6   $283.5



   Operating Profit as reported                  11.8     11.7     21.7     18.3



   Non-GAAP adjustments:



   Operating Profit as adjusted                 $11.8    $11.7    $21.7    $18.3



   Operating Profit as a percentage of
Net Sales

      As Reported                                7.8%     8.2%     7.3%     6.5%

      As Adjusted                                7.8%     8.2%     7.3%     6.5%



     Reconciliation of GAAP to Non-GAAP

             Earnings per Share



   Diluted earnings per share from
continuing operations, as reported              $0.51    $0.52    $0.98    $0.79



   Non-GAAP adjustments per share, net
of taxes:

    Purchase accounting for inventory
and order backlog (1)                                     0.02              0.09

    Transaction related costs (2)                                           0.08

    Financing impact of the Alcan
Packaging Food

       Americas acquisition (3)                                             0.06

    Acquisition related integration
costs (4)                                                 0.04              0.04



   Diluted earnings per share from
continuing operations, as  adjusted             $0.51    $0.58    $0.98    $1.06





 1. Expenses related to the purchase accounting impact of the fair value write-
    up of inventory and a charge for the fair value of the customer order
    backlog, both in the Alcan Packaging Food Americas acquisition.
 2. Transaction related costs are related primarily to our acquisition of Alcan
    Packaging Food Americas. These costs consist of legal, accounting, and other
    professional fees.
 3. Impact from the July 2009 financing of the Alcan Packaging Food Americas
    acquisition, which included the issuance of 8.175 million shares and $800
    million of public debt.  The EPS impact includes the effect of the interest
    expense on the debt and the dilutive effect of the newly issued shares until
    the acquisition was completed on March 1, 2010.
 4. Acquisition related integration costs include severance costs for workforce
    reductions and equipment relocation costs.





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