Bemis reports lower net earnings

By Joel Dresang
Milwaukee Journal Sentinel

Citing volatile costs for raw materials, Bemis Co. (BMS), the Neenah-based flexible packaging company, reported lower net income this morning on increased sales.

Net income dropped to $46.4 million or 46 cents per diluted share for the second quarter from $49.5 million or 47 cents a share the year before. Sales grew to nearly $980 million from $921.8 million in the second quarter of 2007.

Bemis, which also has a business in pressure-sensitive materials, said net income for the first half of 2008 dipped to $88.7 million or 88 cents a share from $97.8 milllion or 92 cents a share the year before. Sales for the first two quarters of 2008 rose to $1.9 billion from $1.8 billion the year before.

“Rapidly rising raw material costs and global economic uncertainty have created a challenging operating environment for our industry,” Bemis President and Chief Executive Officer Henry Theisen said in a statement. “Our business teams are aggressively responding to volatile raw material cost increases while maintaining their dedication to cost management and customer service initiatives.”

Bemis projected that third-quarter earnings per diluted share would range from 42 cents to 46 cents and that full-year earnings would fall between $1.75 per share to $1.83 per share, reflecting high material costs and uncertain markets.