“Our key financial metrics improved this quarter,” said William F. Austen, Bemis president/CEO. “Adjusted EPS increased nearly 12 percent over the prior year. We increased operating margins and delivered our highest total company EBITDA since 2014. Cash from operations improved sequentially, in line with our plan.
“We still have room for improvement. In our U.S. business, we planned for volume growth but disappointed ourselves with flat unit volumes this quarter. In our Global business, we continue to work on improving operational efficiencies at our expanded Oshkosh healthcare packaging facility and on executing our restructuring program in Latin America. “I remain confident in the long-term health of our business and remain committed to creating long-term shareholder value.”
BUSINESS SEGMENT RESULTS
US Packaging net sales of $657.6 million for the third quarter of 2016 represented a decrease of 4.7% compared to the same period of 2015. Unit volumes were approximately the same as the prior third quarter. The decrease in net sales was driven by mix of products sold and the contractual pass through of lower raw material costs.
US Packaging operating profit increased to $100.8 million in the third quarter of 2016, or 15.3% of net sales, compared to $100.0 million, or 14.5% of net sales, in 2015. This margin increase primarily reflects operational improvements attributable to manufacturing efficiencies from the Company’s asset recapitalization program.
Global Packaging net sales for the third quarter of 2016 of $369.6 million represent an increase of 12.6% compared to the same period of 2015. Currency translation reduced net sales by 6.0%. Acquisitions increased net sales by 9.9%. Excluding the impact of currency translation and acquisitions, net sales increased by 8.7%, reflecting increased sales price and mix. Unit volumes were approximately the same as the prior third quarter.
Global Packaging operating profit for the third quarter was $31.8 million, compared to $29.9 million for the same period in 2015. Excluding restructuring and acquisition-related costs, segment adjusted operating profit would have been $36.2 million, or 9.8% of net sales, which compares to 9.7% of net sales in 2015. The net impact of currency translation on operating profit was nominal, as compared to the prior third quarter.
Operating profit during the quarter reflects the impact of positive sales price and mix, partially offset by continued operational inefficiencies at one of Bemis's healthcare packaging facilities.