Healthcare Equipment and Supplies
Company Overview of West Pharmaceutical Services, Inc.
West Pharmaceutical Services, Inc. develops, manufactures, and sells components and systems for the packaging and delivery of injectable drugs, as well as delivery system components for the pharmaceutical, healthcare, and consumer products industries. The company operates through two segments, Pharmaceutical Packaging Systems and Pharmaceutical Delivery Systems. The Pharmaceutical Packaging Systems segment offers packaging components and systems for injectable drug delivery, such as stoppers and seals for vials, closures and other components used in syringe, intravenous and blood collection systems, and prefillable syringe components. This segment also provides contract analytical laboratory...
530 Herman O. West Drive
Exton, PA 19341
Founded in 1923
Key Executives for West Pharmaceutical Services, Inc.
Chief Financial Officer and Senior Vice President
Total Annual Compensation: $467.0K
President of Pharmaceutical Delivery Systems
Total Annual Compensation: $350.3K
President of the Pharmaceutical Packaging Systems Business
Total Annual Compensation: $346.0K
President of Pharmaceutical Packaging Systems Asia-Pacific Region
Total Annual Compensation: $339.1K
Compensation as of Fiscal Year 2014.
West Pharmaceutical Services, Inc. Key Developments
West Pharmaceutical Services, Inc. Appoints George L. Miller as Senior Vice President, General Counsel and Corporate Secretary
Nov 19 15
West Pharmaceutical Services, Inc. announced it has appointed George L. Miller to serve as Senior Vice President, General Counsel and Corporate Secretary, effective November 19, 2015. Mr. Miller will serve on the senior leadership team and will oversee the company's global legal function and corporate governance. Most recently, Mr. Miller served as Sr. Vice President, General Counsel and Secretary for Sigma-Aldrich Corporation. Mr. Miller brings with him more than 30 years of corporate legal experience with large, multinational, publicly-traded companies in the pharmaceutical, life sciences and transportation industries. Prior to working at Sigma-Aldrich, Mr. Miller worked at Novartis, where he held posts in New York, Basel, Switzerland, and Tokyo, Japan, as well as Federal Express Corporation in Tokyo, Japan.
West Pharmaceutical Services, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2015; Revises Earnings Guidance for the Full Year of 2015; Provides Sales Guidance for the Calendar Year 2016
Oct 29 15
West Pharmaceutical Services, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2015. For the quarter, the company reported net income of $1.5 million or $0.02 per diluted share against $31.0 million or $0.43 per diluted share a year ago. The reported results this quarter include a $0.42 onetime non-cash charge associated with the settlement of approximately 40% of U.S. pension obligations. Excluding this charge, adjusted earnings per diluted share $0.44 this quarter, equal to adjusted third quarter 2014 earnings per diluted share. 2015 earnings had been adversely impacted by the decline in the value of the euro and other currencies versus the U.S. dollar. The translation of international results into U.S. dollars for reporting purposes has reduced reported earnings by approximately $0.06 per share as composed - as compared to the prior year third quarter and by $0.24 per share through nine months. Excluding $30 million of exchange effects, consolidated third quarter sales increased by 5.2% versus third quarter 2014 sales. Net debt to total invested capital ratio at quarter end was 4.4%. Third quarter reported revenues of $344.5 million increased 5.2%, excluding a significant 8% currency headwind. Similarly, adjusted diluted EPS was $0.44 equaled the 2014 quarter, overcoming $0.06 of adverse currency translation and grew 13.6% on a constant currency basis. This is primarily a result of strong sales performance for high-value products. Operating loss was $3.5 million against operating profit of $44.0 million a year ago. Loss before income taxes was $6.7 million against income before income taxes of $41.3 million a year ago. Non-GAAP operating profit was $45.5 million against $45.2 million a year ago. Non-GAAP net income was $32.6 million against $31.8 million a year ago.
For the nine months, operating cash flow was $144.4 million against $136.9 million, higher than the first nine months of 2014 despite the negative impact of exchange rates and a higher level of pension funding in 2015. Capital spending was $86.8 million against $84.8 million a year ago. Non-GAAP operating profit was $143.3 million against $138.6 million a year ago. Non-GAAP net income was $100.2 million against $96.5 million a year ago. Non-GAAP diluted EPS was $1.36 against $1.33 a year ago. Net sales were $1,040.1 million against $1,071.6 million a year ago. Operating profit was $83.4 million against $137.4 million a year ago. Income before income taxes was $73.5 million against $127.4 million a year ago. Net income was $62.2 million against $95.7 million a year ago. Diluted net income per share was $0.85 against $1.32 a year ago.
The company estimates 2015 sales at constant currency to grow at a low end of the 7% to 8% range. The company expects a favorable product mix from stronger demand and throughput for high-value products, which will drive margin expansion. Therefore, the company is raising adjusted EPS guidance range for the full year to be between $1.79 and $1.84, which represents a 15% to 19% growth on a constant currency basis over results in 2014. The company expects to spend approximately $145 million to $155 million in capital in 2015, and approximately 50% of planned capital spending is dedicated to new products and expansion activities, including approximately $26 million for the construction of new Waterford facility. Based on year-to-date 2015 results and analysis of the orders on hand and the continuing unfavorable currency effects, the company has raised the lower end of full year 2015 earnings guidance. In addition, 2015 guidance excludes any impact from a devaluation of the Venezuelan bolivar as the company continues to operate primarily under the official exchange rate and excludes executive retirement and pension settlement charges. The company also expects consolidated net sales to be in the range of $1,400 to $1,415 against $1,400 to $1,430 previously expected. Consolidated gross profit margin expects to be in the range of 32.3% to 32.8% against 32.0% to 32.5% previously expected. Gross profit margin expects to be in the range of 18.5% to 19.5% against 19.4% to 19.9% previously expected. The estimated annual effective tax rate (ETR) for 2015 used in determining adjusted net income for the nine months ended is 27.8%, compared to 27.9% in 2014. The decrease is attributed primarily due to changes in the geographic mix of earnings. Third quarter 2015 results reflect the year-to-date effect of a reduction in the estimated 2015 ETR from the second quarter.
The company expects revenue to grow between 6% and 8% in calendar year 2016 compared to its current estimates for 2015 at constant exchange rates.
West Pharmaceutical Services, Inc., Q3 2015 Earnings Call, Oct 29, 2015
Oct 22 15
West Pharmaceutical Services, Inc., Q3 2015 Earnings Call, Oct 29, 2015
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