2018 GUIDANCE SUMMARY
Management set guidance for the full year 2018:
- Adjusted diluted earnings per share of $2.75 to $2.90, which includes a $.31 benefit related to US tax reform at the midpoint of the range.
- Capital expenditures expected between $150 and $160 million.
- Cash flow from operations expected to be $420 to $450 million, which includes approximately $50 million of restructuring and related cash costs.
“We made progress during the second half of 2017, as reflected in adjusted operating profit that was up nearly $35 million compared to the first half of the year. This increase reflects operational improvements and the early benefits of Agility, which is our plan to fix, strengthen, and grow our business,” says William F. Austen, Bemis president/CEO. “We are focused on executing our plan to create a more agile, streamlined, and efficient business.”
2017 LAUNCH OF “AGILITY”
During 2017, Bemis launched an improvement plan called “Agility” to fix, strengthen, and grow its business.
As part of this three-pronged approach, the fix aspect involves the restructuring and cost savings plan announced in June and increased in September to target pre-tax annual savings of $65 million. The plan includes optimizing manufacturing capacity, consolidating office space, and reducing SG&A cost structure and other costs.
The strengthen and grow aspects of Agility create the foundation for Bemis' long-term success by simplifying its product portfolio and organizational structure, rebalancing R&D efforts to focus on manufacturing improvements, and deliberately pursuing targeted areas of growth in its North American business. The company’s actions during 2018 related to these work streams will lay the foundation for future growth.