CCL Industries Reports Record Net Earnings of $1.01 Per Share for the First Quarter and Declares Dividend
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 05/02/13 -- CCL Industries Inc. (TSX: CCL.A)(TSX: CCL.B) -
(i) - Change over prior year's comparative period excludes estimated impact of foreign currency translation.
CCL Industries Inc. ("CCL" or "the Company") is a world leader in the development of label solutions for global producers of consumer brands in the home & personal care, healthcare, durable goods, and premium food & beverage sectors; and a specialty supplier of aluminum containers for the same customers in North America.
First Quarter 2013 Results
Sales for the first quarter of 2013 were $363.6 million, an increase of 6.5%, compared to the $341.4 million for the first quarter of 2012. Excluding the impact of foreign currency translation, sales increased 5.6% organically with an additional 0.6% increase from the acquisition of Graphitype in July 2012.
Operating income (a non-IFRS measure; see note 2 below) for the first quarter of 2013 was $61.9 million, an improvement of 17.7% compared to $52.6 million for the first quarter of 2012. Both the Label and Container segments contributed to the increase in operating income.
Earnings before net finance cost, taxes, earnings in equity accounted investments, depreciation and amortization and restructuring and other items ("EBITDA", a non-IFRS measure; see note 1 below) was $81.0 million for the first quarter of 2013, compared to $71.2 million for the first quarter of 2012.
The overall effective income tax rate was 29.2% for the first quarter of 2013 compared to 27.6% for the first quarter of 2012. The increase in the effective tax rate is primarily due to a higher portion of the Company's income being earned in higher tax jurisdictions.
Net earnings for the 2013 first quarter increased 12.0% to $34.1 million, compared to $30.4 million recorded for the first quarter of 2012. This resulted in basic and diluted earnings per share of $1.01 and $0.99, respectively, for the first quarter of 2013 compared to basic and diluted earnings per share of $0.91 and $0.89, respectively, for the first quarter of 2012.
Adjusted basic earnings per Class B share (a non-GAAP measure; see note 3 below) were $1.04 for the first quarter of 2013, an increase of 14.3% compared to $0.91 in the corresponding quarter of 2012. The adjustment to basic earnings per Class B share includes the after tax costs of $0.8 million and $0.3 million, respectively, for restructuring a small label plant in France and transaction costs related to the proposed acquisition of the Office & Consumer Products and Designed & Engineered businesses from Avery Dennison Corporation, announced on January 30, 2013.
Geoffrey T. Martin, President and Chief Executive Officer stated, "We are delighted to report record quarterly results and our tenth consecutive period of year-over-year improvement that broke the one dollar earnings per share milestone for the first time. Operating income increased 18% over the prior year and both the Label and Container Segments contributed to the record performance. Results were nominally improved by foreign currency translation compared to the prior year period."
Mr. Martin continued, "CCL Label, which now includes our Tube business, posted a good first quarter increasing sales 5.7% with all geographies contributing and highlighted by strong growth in emerging markets. Operating income increased 12.7% with return on sales reaching a record 18%. North American sales were up low single digits on top of the strong double digit advance reached during the first quarter of 2012; we also matched the substantially improved profitability achieved in the prior year period. European sales gains were also low single digits but profitability advanced significantly on turnarounds and a strong performance in Food & Beverage. Latin America and Asia both delivered double digit revenue growth with particularly strong results in China and a rebound from the slow second half of 2012 in Brazil. Profit improvement in Asia and Latin America was robust; performance in Australia was solid. Our joint ventures contributed very good results in the Middle East, offset by tough comparisons in Russia, where the prior year benefitted from currency movements, and start-up costs at the new plant in Santiago. The Chilean operation continues to exceed expectations."
Mr. Martin then added, "CCL Container sales were up 11% for the current quarter in part due to the peak sun care season that was delayed to the second quarter in 2012 returning to the first quarter of 2013. Profitability more than doubled compared to the prior year with all of our operations delivering broad based operational gains. Cash flow was excellent and returns are now considerably above our cost of capital hurdle."
Mr. Martin continued, "Order intake levels were very solid for the first quarter but did slow in late March, perhaps due to the early Easter vacation period. We continue to expect low single digit growth rates in developed economies as long as the macro environment remains fragile but still see opportunities to augment that in higher growth emerging markets. Currency markets have moved very slightly in our favour and we could progressively benefit from this as the year unfolds if current rates for the Canadian dollar are sustained or weaken. The input cost situation remains stable."
Mr. Martin also stated, "The Company finished the quarter with a healthy balance sheet, $190 million of cash on hand and a net debt to total book capitalization of 13.4% compared to 19.3% at March 31, 2012. On April 3, 2013, utilizing our cash on hand, we announced the acquisition of INT Autotechnik perfectly complementing our existing CCL Design business, which supplies the German automotive industry with tread plates, badges, decals and functional die cut pressure sensitive films. We have committed credit facilities of $700 million for our planned Avery Dennison transaction and to provide for future flexibility. Based on our strong cash flow and prospects for the remainder of the year, your Board of Directors has declared a dividend of $0.2150 per Class B non-voting share and $0.2025 per Class A voting share payable to shareholders of record at the close of business on June 14, 2013, to be paid on June 28, 2013."
Mr. Martin concluded, "We have now received all the required regulatory approvals to complete the Avery Dennison Office & Consumer Products and Designed & Engineered Solutions transaction. Current transition and business planning activities are targeting a close early in the third quarter of 2013."
With headquarters in Toronto, Canada, CCL Industries now employs approximately 6,700 people and operates 74 production facilities globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials for a wide range of decorative, instructional and functional applications in consumer packaging, healthcare, automotive and consumer durables markets. Extruded plastic tubes, folded instructional leaflets, precision printed & die cut metal components with LED displays and other complimentary products and services are sold in parallel to specific end use markets. CCL Container is a leading producer of impact extruded aluminum aerosol cans and bottles for consumer packaged goods customers in the United States, Canada and Mexico.
Supplementary Information
The financial information presented herein has been prepared on the basis of IFRS for financial statements and is expressed in Canadian dollars unless otherwise stated.
This press release contains forward-looking information and forward-looking statements (hereinafter collectively referred to as "forward-looking statements"), as defined under applicable securities laws, that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the anticipated growth in sales, income and profitability of the Company's segments; and the Company's expectations regarding general business and economic conditions.
Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the after-effects of the global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic recovery and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific sectors and entering into new sectors; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; the Company's expectation to close the announced purchase of the Office & Consumer Products and Designed & Engineered Solutions businesses of Avery Dennison Corporation within the predicted timeframe and expected terms; and general business and economic conditions. Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the Management's Discussion and Analysis section of CCL's 2012 Annual Report, particularly under Section 4: "Risks and Uncertainties." CCL's annual and quarterly reports can be found online at and or are available upon request.
Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on CCL's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts.
The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
For more details on CCL, visit our website - .
Effective January 1, 2013, the Company changed its operating segments to incorporate all the entities previously reported within the Tube segment in the Label segment, to more closely represent the current management structure and reporting. Comparative segment information has been restated to conform with current year presentation.
Contacts:
CCL Industries Inc.
Sean Washchuk
Senior Vice President and Chief Financial Officer
416-756-8526
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Datum: 02.05.2013 - 06:30 Uhr
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