Bemis To Close Four Facilities In Latin America By Middle Of 2017

(RTTNews) - Bemis Company Inc. (BMS) said that it initiated a restructuring program in its Global Packaging segment to improve efficiencies and reduce fixed costs. The company will close four facilities in Latin America by the middle of 2017.

A portion of these closures reflect the Company's synergy plan related to the recent Emplal acquisition to optimize its footprint. Total restructuring costs for this program are estimated to be in the range of $28 to $30 million (at current exchange rates), $13.3 million of which was booked during the second quarter of 2016. Cost reductions from the program are expected to reach the full run rate of approximately $16 million (at current exchange rates) annually during 2018.

The company confirmed full year adjusted earnings per share to be in the range of $2.68 to $2.78 ($2.47 to $2.57 on a GAAP basis, which considers expected restructuring charges during the balance of the year). Analysts polled by Thomson Reuters expect the company to report earnings of $2.73 per share for fiscal year 2016. Analysts' estimates typically exclude special items.

It reduced cash from operations guidance to be in the range of $425 to $465 million, as compared to the previous range of $450 million to $500 million. This updated guidance reflects the impact of the restructuring program and the timing of working capital improvement initiatives.

It continues to expect capital expenditures to be approximately $200 million.