AptarGroup Posts Strong Earnings Per Share Growth on a Comparable Currency Basis

AptarGroup, Inc. (NYSE:ATR) today reported first quarter sales and earnings per share. Excluding currency effects, comparable earnings per share increased significantly over the prior year despite a slight decline in sales.

First Quarter 2015 Summary

• Excluding currency translation effects, core sales declined 1%
• Earnings per share reached $0.70, a 17% increase over the prior year currency-adjusted earnings per share of $0.60
• Reported sales and earnings per share were negatively impacted by weak foreign currencies, primarily the Euro
• Reported sales decreased 13% to $590 million and reported earnings per share decreased 1% to $0.70 per share from $0.71 per share reported in the prior year
• Pharma segment delivered excellent results with core sales growth in each market
• Each business segment achieved operating profit margins equal to or above the prior year’s levels

FIRST QUARTER RESULTS

For the quarter ended March 31, 2015, reported sales decreased 13% to $590 million from $676 million a year ago. Excluding the negative impact from changes in currency exchange rates, core sales decreased by 1%.

(1) - Currency effects are determined by translating last year's amounts at this year's foreign exchange rates.

Commenting on the quarter, Stephen Hagge, President and CEO, said, “I am pleased that we were able to achieve strong earnings per share growth on a comparable currency-adjusted basis despite softness in certain markets. Our results were primarily driven by another excellent quarter for our Pharma segment that grew cores sales in each of its markets. We also benefited from cost containment efforts and lower raw material costs across each business segment. We are on the right track toward improving the margin profile of our Beauty + Home segment and while we are in the early stages, I think this quarter’s result was a good start. In addition, after a slow start to the quarter, our Food + Beverage segment’s sales gained momentum as the quarter progressed.”

AptarGroup reported earnings per share of $0.70 compared to $0.71 per share a year ago. Assuming a comparable foreign currency exchange rate environment, comparable earnings per share for the prior year were approximately $0.60.

OUTLOOK

Commenting on AptarGroup’s outlook, Hagge said, “As we look forward to the second quarter, we are expecting another quarter of solid earnings growth on a comparable currency-adjusted basis. The weak foreign currency environment should continue to be a significant headwind on our translated results. Recent near-term macro-economic forecasts point to deceleration in the developing regions and there remains some uncertainty around the pace of growth in the US and Europe. However, our level of project dialog with customers is good and we are optimistic that we will continue to drive growth through our targeted market approach with the industry’s broadest product portfolio. We will also continue to focus on cost containment as we create affordable innovation for our customers and consumers.”

AptarGroup expects earnings per share for the second quarter to be in the range of $0.73 to $0.78 per share compared to $0.79 per share reported in the prior year. Assuming a comparable foreign currency exchange rate environment, comparable earnings per share for the prior year were approximately $0.66.

CASH DIVIDEND

As previously reported, the Board of Directors declared a quarterly cash dividend of $0.28 per share. The payment date is May 20, 2015, to stockholders of record as of April 29, 2015.

OPEN CONFERENCE CALL

There will be a conference call on Friday, May 1, 2015 at 8:00 a.m. Central Time to discuss AptarGroup’s first quarter results for 2015. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptar.com. Replay of the conference call can also be accessed on the Investor Relations page of the website.

AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing solutions for the beauty, personal care, home care, prescription drug, consumer health care, injectables, food, and beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia and South America. For more information, visit www.aptar.com.

This press release contains forward-looking statements. Words such as “expects,” “anticipates,” “believes,” “estimates,” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management’s beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, economic, environmental or political conditions in the various markets and countries in which AptarGroup operates; changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; fluctuations in the cost of raw materials, components and other input costs; the Company’s ability to increase prices, contain costs and improve productivity; changes in capital availability or cost, including interest rate fluctuations; the competitive marketplace; fiscal and monetary policies and other regulations; inflationary pressures and changes in foreign currency exchange rates; direct or indirect consequences of acts of war or terrorism; and labor relations. For additional information on these and other risks and uncertainties, please see AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-K’s and Form 10-Q’s. Readers are cautioned not to place undue reliance on forward-looking statements. AptarGroup undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.