Bemis Sets Long-term Financial Targets and Strategic Priorities
By Business Wire News
By Business Wire News
Bemis Company, Inc. (NYSE: BMS) today held an investor conference at which President and Chief Executive Officer, William F. Austen, and members of the Company’s global leadership team provided the investment community with an overview of the Company’s long-term financial targets and strategic priorities.
“We are confident in our strategy to achieve our growth and performance targets over the next five years,” said Austen. “Our strategy to accelerate growth, focus innovation, and continuously improve is reinforced by the changes we have made to how we execute – with focus, alignment, accountability, and rigor.”
Management expects revenue to grow from $4.3 billion in 2014 to $5.8 billion in 2019, assuming constant currency. Revenue growth through 2019 is anticipated to be equally balanced between organic and inorganic growth.
“Market trends across the globe favor our sophisticated packaging solutions,” commented Austen. “Specifically, global trends include consumers’ focus on health and wellness, prioritization of sustainability, increasing access to healthcare, and product differentiation on the retail shelf, all of which create increased demand for our products. We are proactively responding to these trends with increased attention to the growth and success of our customers, along with a higher level of capital investment that is focused on growth and productivity projects.”
Increased Operating Margins
Operating margins are expected to increase in the U.S. Packaging segment from 13.1% in 2014 to the range of 15% to 18% in the next three to five years; margins are forecasted to increase in the Global Packaging segment from 7.6% in 2014 to greater than 10% in the next three to five years. Drivers of this improvement include increased sales of sophisticated, value-added products to meet global demand, productivity improvements, and the benefit of commercial decisions supported by enhanced data and analytics.
Michael B. Clauer, Bemis’ Vice President and Chief Financial Officer, commented, “We expect these margin targets to deliver earnings per share improvement of approximately 10 percent per year as we continue to execute our long-term strategy.”
Strong Operating Cash Flow
Operating cash flow is forecasted to be approximately $550 million in 2019.
Commenting on the cash flow forecast, Clauer added, “We are confident that our targeted revenue growth, earnings improvement, and working capital discipline will deliver higher levels of operating cash flow in the future.”
Austen summarized the Company’s outlook and strategy review by saying, “We have a new perspective. As we move ahead, our focus is customer-centric; our resources are aligned toward improved performance metrics; and we have urgency, accountability, and rigor in all that we do.” Austen continued, “I am proud to be leading a company with such a rich history and, more importantly, such potential to perform in the future.”
A webcast replay of the investor conference is available on Bemis’ website, www.bemis.com, under the Investor Relations tab.
Statements in this release that are not historical, including statements relating to the expected future performance of the Company, are considered “forward-looking” and are presented pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such content is subject to certain risks and uncertainties, including but not limited to general economic conditions, future changes in cost or availability of raw materials, our ability to adjust selling prices, consumer buying patterns, changes in customer order patterns, the results of competitive bid processes, costs associated with the pursuit of business combinations or divestitures, plant closures, a failure in our information technology systems, foreign currency fluctuations, changes in working capital requirements, changes in government regulations, and the availability and related cost of financing from banks and capital markets. Actual future results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors, which are detailed in the Company’s regular SEC filings including the most recently filed Form 10-K for the year ended December 31, 2014.
ABOUT BEMIS COMPANY, INC.
Bemis Company, Inc. (“Bemis” or the “Company”) is a major supplier of flexible packaging used by leading food, consumer products, healthcare, and other companies worldwide. Founded in 1858, Bemis reported 2014 net sales from continuing operations of $4.3 billion. Bemis has a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing, and converting. Headquartered in Neenah, Wisconsin, Bemis employs approximately 17,000 individuals worldwide. More information about Bemis is available at our website, www.bemis.com.
Bemis Company Inc.
Erin M. Winters, 920-527-5288
Director of Investor Relations