Bemis Provides Updated 2017 Outlook; Announces Plans To Improve U.S. Operations

(RTTNews) - Bemis Company, Inc. (BMS) announced it expects adjusted earnings per share to be in the range of $2.50 to $2.60 for the full year 2017. The company estimates GAAP earnings per share to be in the range of $2.44 to $2.54 for the full year 2017, excluding the impact of items.

William Austen, Bemis CEO stated, "Our updated guidance reflects the impact of lower volume expectations from our core U.S. customer base and near-term operating inefficiencies in our U.S. Packaging business. We are confident that the initiatives to improve U.S. Packaging operations and profitability will enhance our positioning and performance, while driving enhanced value to our shareholders over the long-term."

The company expects full year 2017 cash from operations to be in the range of $415 to $455 million, primarily a result of revised earnings expectations. This guidance excludes the impact of future U.S. Packaging restructuring efforts.

As part of the efforts to improve the profitability of its U.S. Packaging business, Bemis is developing a comprehensive plan that enhances focus and improves performance in its U.S. business. Bemis is also evaluating additional ways to enhance its U.S. organizational structure. The company is evaluating its manufacturing footprint and utilization in the U.S. to align with customer and end market demand and to ensure optimal operational efficiency. A plan will be announced during the second quarter and implemented during 2017, with benefits expected in 2018. Bemis is taking actions to reduce SG&A expenses in the U.S. The company is evaluating all administrative activities and costs and is accelerating its Global Business Services initiative in the U.S.