AptarGroup announces record quarterly revenue

For the quarter ended March 31, 2013, reported sales increased 4 % to $618 million from $592 million a year ago. Aptar Stelmi, which was acquired in July of 2012, contributed approximately $35 million or 6 % to the quarterly sales growth, the company stated.

Commenting on the quarter, Stephen Hagge, President and CEO, said, “Looking at our sales for the quarter, our Beauty + Home segment was negatively affected by weak volumes in the U.S. beauty and personal care markets. Our Pharma segment was negatively impacted by the anticipated softness in the U.S. generic allergy market and also decreased demand from the European consumer health care market. Aptar Stelmi had a terrific quarter and contributed approximately $35 million in sales. Demand for our Food + Beverage dispensing systems was strong in the quarter. Also, lower custom tooling sales across each segment had a negative effect on our core sales growth. Our operations in Latin America and Asia posted another quarter of strong growth.”

European operations optimization plan update

Commenting on the previously announced operations optimization plan, Hagge stated, “Our plan is progressing well and as expected.” In the first quarter, the company recognized approximately $4.5 million of expense related to the plan, of which $0.5 million were non-cash expenses. Using current exchange rates, the company expects to recognize approximately $9 million in additional costs, most of which will be incurred in 2013. Annual savings of approximately $12 million are expected to begin later this year.

Outlook

Regarding the company’s outlook, Hagge stated, “Looking to the second quarter, we anticipate our Beauty + Home segment’s income to improve from the disappointing first quarter results. We are optimistic that our legacy Pharma business will see more normalized order levels in the U.S. generic allergy and European consumer health care markets in the second quarter. Also, Aptar Stelmi is expected to continue to perform well. Our Food + Beverage segment is expected to continue to grow over the prior year.”

About AptarGroup

AptarGroup is a leading global supplier of a broad range of dispensing systems for the beauty, personal care, pharmaceutical, home care, food, and beverage markets.The companyis headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America.