Bemis Company Announces New Reportable Business Segments

  Bemis Company Announces New Reportable Business Segments

Business Wire

NEENAH, Wis. -- January 10, 2013

Bemis Company, Inc. (NYSE:BMS) today announced that it has realigned its
segment reporting. As a result, Bemis will report business segment information
for three reportable segments as follows: U.S. Packaging, Global Packaging,
and Pressure Sensitive Materials. The expansion from two to three reportable
segments reflects the separation of the Flexible Packaging business segment
into U.S. Packaging and Global Packaging business segments. The Pressure
Sensitive Materials business segment is unchanged.

The U.S. Packaging segment represents all food, consumer, and industrial
products packaging-related manufacturing operations located in the United
States. The Global Packaging business segment includes all Bemis'
packaging-related manufacturing operations located outside of the United
States as well as our global medical device and pharmaceutical packaging
manufacturing operations.

For detailed financial information on the Company's new reportable segments,
please refer to the following tables, recasting previously issued information
into the new format. Bemis will be reporting under this new business segment
structure during its fourth quarter and full year 2012 earnings call scheduled
for January 31, 2013 at 10:00 a.m. (ET).

ABOUT BEMIS COMPANY, INC.
Bemis Company, Inc. is a major supplier of 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 2011 net sales of $5.3 billion. The Company's
packaging business has a strong technical base in polymer chemistry, film
extrusion, coating and laminating, printing, and converting. Headquartered in
Neenah, Wisconsin, Bemis employs approximately 20,000 individuals worldwide.
More information about the Company is available at our website, www.bemis.com.

The changes to the business segments have no effect on the historical
consolidated results of operations. Prior period segment results have been
conformed to the new business segment presentation. A summary of the Company's
business activities recast in these three new business segments follows:

               Three months ended
Business         September 30,                                     December
Segments (in     2012            June 30, 2012  March 31, 2012  31, 2011
millions)
                 (unaudited)
Sales
including
intersegment
sales:
U.S. Packaging   $  780.7         $  794.0        $  770.6         $ 736.9
Global           382.8            385.9           398.7            405.5
Packaging
Pressure
Sensitive        135.7            142.2           145.5            136.8
Materials
                                                                   
Intersegment
sales:
U.S. Packaging   (5.8        )    (5.4        )   (5.5        )    (4.2      )
Global           (5.3        )    (3.7        )   (4.3        )    (4.5      )
Packaging
Pressure
Sensitive        (0.3        )    (0.3        )   (0.2        )    (0.3      )
Materials
Total net        $  1,287.8      $  1,312.7     $  1,304.8      $ 1,270.2 
sales
                                                                   
U.S. Packaging
Operating
profit before
facility         $  107.5         $  90.2         $  89.6          $ 87.0
consolidation
and other
costs
Facility
consolidation    (11.5       )    (12.3       )   (7.6        )    (26.3     )
and other
costs
Operating        96.0             77.9            82.0             60.7
profit
                                                                   
Global
Packaging
Operating
profit before
facility         24.2             25.7            26.6             25.5
consolidation
and other
costs
Facility
consolidation    (9.9        )    (7.3        )   (0.7        )    (8.6      )
and other
costs
Operating        14.3             18.4            25.9             16.9
profit
                                                                   
Pressure
Sensitive
Materials
Operating
profit before
facility         7.7              10.9            9.7              6.5
consolidation
and other
costs
Facility
consolidation    —               —              —               (2.7      )
and other
costs
Operating        7.7              10.9            9.7              3.8
profit
                                                                   
General
corporate        (28.1       )    (24.4       )   (29.1       )    (25.9     )
expenses
General
corporate
facility         —               —              —               (0.8      )
consolidation
and other
costs
Net general
corporate        (28.1       )    (24.4       )   (29.1       )    (26.7     )
expenses
                                                                
Operating        $  89.9         $  82.8        $  88.5         $ 54.7    
income
                                                                             

Reconciliation of
GAAP to Non-GAAP
Operating Profit and   Three months ended
Operating Profit as a
Percentage of Net
Sales by Segment
(in millions)           September     June 30,      March 31,     December
                        30, 2012       2012           2012           31, 2011
                        (unaudited)
U.S. Packaging
Net sales              $  774.9      $  788.6      $  765.1      $ 732.7 
                                                                     
Operating profit as     $  96.0        $  77.9        $  82.0        $ 60.7
reported
                                                                     
Non-GAAP adjustments:
Facility
consolidation and      11.5          12.3          7.6           26.3    
other costs (1)
                                                                     
Operating profit as    $  107.5      $  90.2       $  89.6       $ 87.0  
adjusted
                                                                     
Operating profit as a
percentage of net
sales
As reported             12.4      %    9.9       %    10.7      %    8.3     %
As adjusted             13.9      %    11.4      %    11.7      %    11.9    %
                                                                     
Global Packaging
Net sales              $  377.5      $  382.2      $  394.4      $ 401.0 
                                                                     
Operating profit as     $  14.3        $  18.4        $  25.9        $ 16.9
reported
                                                                     
Non-GAAP adjustments:
Facility
consolidation and       9.9            7.3            0.7            8.6
other costs (1)
Acquisition-related     1.1            1.7            1.7            1.7
integration costs (2)
Pension curtailment    —             —             —             (2.7    )
(3)
                                                                     
Operating profit as    $  25.3       $  27.4       $  28.3       $ 24.5  
adjusted
                                                                     
Operating profit as a
percentage of net
sales
As reported             3.8       %    4.8       %    6.6       %    4.2     %
As adjusted             6.7       %    7.2       %    7.2       %    6.1     %
                                                                     
Pressure Sensitive
Materials
Net sales              $  135.4      $  141.9      $  145.3      $ 136.5 
                                                                     
Operating profit as     $  7.7         $  10.9        $  9.7         $ 3.8
reported
                                                                     
Non-GAAP adjustments:
Facility
consolidation and      —             —             —             2.7     
other costs (1)
                                                                     
Operating profit as    $  7.7        $  10.9       $  9.7        $ 6.5   
adjusted
                                                                     
Operating profit as a
percentage of net
sales
As reported             5.7       %    7.7       %    6.7       %    2.8     %
As adjusted             5.7       %    7.7       %    6.7       %    4.8     %
                                                                             

      Facility consolidation and other costs includes employee-related costs,
(1)  accelerated depreciation, write down of equipment and other costs
      related to the Company's facility consolidation program.
(2)   Acquisition-related integration costs include earnout payments treated
      as compensation expense related to the Mayor Packaging acquisition.
(3)   Pension curtailment includes a gain associated with the Company's
      Mexican pension plan.
      

                                             Twelve Months Ended December 31,
Business Segments (in millions)               2011             2010
                                              (unaudited)
Sales including intersegment sales:
U.S. Packaging                                $  3,129.2        $  2,835.2
Global Packaging                              1,650.1           1,461.6
Pressure Sensitive Materials                  575.8             567.1
                                                                
Intersegment sales:
U.S. Packaging                                (18.5       )     (13.6       )
Global Packaging                              (12.9       )     (10.8       )
Pressure Sensitive Materials                  (1.0        )     (4.5        )
Total net sales                               $  5,322.7       $  4,835.0  
                                                                
U.S. Packaging
Operating profit before facility              $  341.3          $  346.7
consolidation and other costs
Facility consolidation and other costs        (26.3       )     —           
Operating profit                              315.0             346.7
                                                                
Global Packaging
Operating profit before facility              121.2             121.8
consolidation and other costs
Facility consolidation and other costs        (8.6        )     —           
Operating profit                              112.6             121.8
                                                                
Pressure Sensitive Materials
Operating profit before facility              36.1              33.0
consolidation and other costs
Facility consolidation and other costs        (2.7        )     —           
Operating profit                              33.4              33.0
                                                                
General corporate expenses                    (92.8       )     (100.7      )
General corporate facility consolidation      (0.8        )     —           
and other costs
Net general corporate expenses                (93.6       )     (100.7      )
                                                               
Operating income                              $  367.4         $  400.8    
                                                                            

Reconciliation of GAAP to Non-GAAP
Operating Profit and Operating Profit as a   Twelve Months Ended December 31,
Percentage of Net Sales by Segment
(in millions)                                 2011             2010
                                              (unaudited)
U.S. Packaging
Net sales                                     $  3,110.7       $  2,821.6  
                                                                
Operating profit as reported                  $  315.0          $  346.7
                                                                
Non-GAAP adjustments:
Purchase accounting for inventory and order   —                 12.4
backlog (1)
Acquisition-related integration costs (2)     —                 1.7
Facility consolidation and other costs (3)    26.3             —           
                                                                
Operating profit as adjusted                  $  341.3         $  360.8    
                                                                
Operating profit as a percentage of net
sales
As reported                                   10.1        %     12.3        %
As adjusted                                   11.0        %     12.8        %
                                                                
Global Packaging
Net sales                                     $  1,637.2       $  1,450.8  
                                                                
Operating profit as reported                  $  112.6          $  121.8
                                                                
Non-GAAP adjustments:
Purchase accounting for inventory and order   0.5               3.0
backlog (1)
Acquisition-related integration costs (2)     2.9               2.9
Facility consolidation and other costs (3)    8.6               —
Pension curtailment (4)                       (2.7        )     —           
                                                                
Operating profit as adjusted                  $  121.9         $  127.7    
                                                                
Operating profit as a percentage of net
sales
As reported                                   6.9         %     8.4         %
As adjusted                                   7.4         %     8.8         %
                                                                
Pressure Sensitive Materials
Net sales                                     $  574.8         $  562.6    
                                                                
Operating profit as reported                  $  33.4           $  33.0
                                                                
Non-GAAP adjustments:
Facility consolidation and other costs (3)    2.7              —           
                                                                
Operating profit as adjusted                  $  36.1          $  33.0     
                                                                
Operating profit as a percentage of net
sales
As reported                                   5.8         %     5.9         %
As adjusted                                   6.3         %     5.9         %
                                                                            

      Expenses related to the purchase accounting impact of the fair value
(1)  write-up of inventory and a charge for the fair value of the customer
      order backlog, both in the Alcan Packaging Food Americas and Mayor
      Packaging acquisitions.
      Acquisition related integration costs include severance costs for
(2)   workforce reductions and equipment relocation costs related to the Alcan
      Packaging Food Americas acquisition and earnout payments treated as
      compensation expense related to the Mayor Packaging acquisition.
      Facility consolidation and other costs includes employee-related costs,
(3)   accelerated depreciation, write down of equipment and other costs
      related to the Company's facility consolidation program.
(4)   Pension curtailment includes a gain associated with the Company's
      Mexican pension plan.
      

                                          Twelve Months Ended December 31,
Business Segments (in millions)            2011                2010
                                           (unaudited)
Total Assets:
U.S. Packaging                             $   2,186.6          $  2,261.2
Global Packaging                           1,501.0              1,531.3
Pressure Sensitive Materials               302.1               305.6
Total identifiable assets                  3,989.7              4,098.1
Corporate assets                           330.7               187.7
Total                                      $   4,320.4         $  4,285.8
                                                                
Depreciation and Amortization:
U.S. Packaging                             $   124.6            $  125.5
Global Packaging                           75.5                 66.0
Pressure Sensitive Materials               13.2                 13.2
Corporate                                  7.0                 5.0
Total                                      $   220.3           $  209.7
                                                                
Expenditures for Property and Equipment:
U.S. Packaging                             $   66.7             $  54.9
Global Packaging                           36.2                 35.5
Pressure Sensitive Materials               11.9                 7.8
Corporate                                  20.4                15.0
Total                                      $   135.2           $  113.2
                                                                   

Contact:

Bemis Company, Inc.
Melanie E. R. Miller, 920-527-5045
Vice President, Investor Relations
and Treasurer
or
Kristine Pavletich, 920-527-5159
Public Relations Specialist
 
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