“Pressure-Sensitive Materials delivered its fourth consecutive year of strong volume growth, while significantly improving its profitability and return on capital,” Scarborough adds. “Retail Branding and Information Solutions began executing a new strategy in 2015 to accelerate growth in the core business through a more competitive, faster, and simpler business model, and made solid progress against its long-term financial goals during the back half of the year.
“In 2016, we expect to deliver solid organic sales growth and further expand our margins and return on capital, notwithstanding continued headwinds from currency translation and an uncertain economic climate, with continued return of cash to shareholders,” says Scarborough. “We remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline."
Pressure-Sensitive Materials (PSM)
PSM sales increased approximately 7%. Within the segment, sales in both Label and Packaging Materials and combined Graphics and Performance Tapes increased mid-single digits.
Operating margin improved 60 basis points to 10.7% as the impact of productivity initiatives more than offset higher employee-related costs. Adjusted operating margin improved 40 basis points.
Retail Branding and Information Solutions (RBIS)
RBIS sales increased approximately 8%. Operating margin declined 140 basis points to 4.1% driven by higher restructuring charges. Adjusted operating margin increased 160 basis points as the impact of productivity initiatives more than offset higher employee-related costs.
In its supplemental presentation materials, “Fourth Quarter and Full Year 2015 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its 2016 financial results. Based on the factors listed and other assumptions, the company expects 2016 earnings per share of $3.15 to $3.35.