DOW JONES NEWSWIRES
AptarGroup Inc.'s (ATR) second-quarter profit dropped 35.9% as
beauty and home segment sales continued to be buffeted by the
economic downturn.
"While we are encouraged that late second quarter activity seems
to indicate that things may be stabilizing in some of the hardest
hit markets, visibility remains very low and uncertainty remains,"
said Chief Executive Peter Pfeiffer. "We also believe that the road
out from the bottom of these markets will not be a rapid ascent,
but rather a prolonged, gradual journey."
Aptar, which makes pump dispensers for perfumes, cosmetics and
pharmaceuticals, as well as dispensing systems for food and drinks,
has suffered from the drop in consumer spending amid the recession.
It plans to consolidate plants and offices to reduce costs.
Aptar reported profit of $28.5 million, or 41 cents a share,
down from $45.3 million, or 64 cents a share, a year earlier.
Revenue dropped 20.1%, to $440.5 million, with currency exchange
rates hurting results by 9%.
In April, Aptar predicted earnings of 37 cents to 42 cents.
Analysts' latest estimates were for per-share earnings of 40 cents
on revenue of $455 million, according to a poll by Thomson
Reuters.
Gross margin rose to 34.4% from 32.4%.
Beauty and home segment sales dropped 26% due to a slide in the
fragrance and cosmetic market, which has been hampered by economic
conditions, particularly in the developed markets. Closures
declined 14.6%, driven by cost decreases in pass-through resin, and
pharmaceuticals slid 12.4%, mostly due to changes in
currency-exchange rates.
In April, the company said it expected difficult conditions to
continue in the second quarter with improvement in the second half
of this year.
Looking ahead, AptarGroup expects third-quarter earnings of 44
cents to 49 cents. Analysts estimated earnings of 49 cents a share
on revenue of $489.4 million.
AptarGroup's shares were flat, at $35.74 in after-hours trading,
from a 2.1% gain by the close of the regular session. The stock is
up about 40% since March but is still down about a fifth in the
past 10 months.
-By Adam O. Manzor and Kathy Shwiff, Dow Jones Newswires;
212-416-2357; Kathy.Shwiff@dowjones.com
