AptarGroup sales up 11 percent
CRYSTAL LAKE – AptarGroup Inc. reported sales increased 11 percent to $641 million for the quarter ended June 30, up from $578 million a year ago.
Aptar Stelmi, which was acquired in July 2012, contributed approximately $39 million or 7 percent to the quarterly sales growth.
For the first six months of 2013, AptarGroup reported sales increased 8 percent to $1.26 billion from $1.17 billion a year ago.
The Crystal Lake-based company said earnings per share were 73 cents, up from 61 cents from the prior year.
AptarGroup Inc. is a leading global supplier of a broad range of dispensing systems for the beauty, personal care, home care, pharmaceutical, food, and beverage markets. AptarGroup has manufacturing facilities in North America, Europe, Asia and South America.
AptarGroup also announced it is increasing capacity at its Aptar Stelmi facilities in Europe, and establishing a new Aptar manufacturing facility in Colombia to serve the Andean region.
"End market diversity continues to be a key strength of our business," said Stephen Hagge, AptarGroup president and CEO. "Our Pharma segment benefited from increased demand from both the consumer health care and prescription drug markets while our Food + Beverage segment also experienced increased sales to each of its markets. In our Beauty + Home segment, increased demand from the personal care market was partially offset by decreased demand from the beauty and home care markets. Also, Aptar Stelmi
continued to perform well.”
AptarGroup announced plans to increase the capacity of its Aptar Stelmi business with a $26 million investment for expanded facilities, new equipment and upgraded technology over the next year.
Aptar Stelmi is a European-based supplier of elastomer primar packaging components to the injectable drug delivery industry. Aptar Stelmi’s products include syringe plungers, vial stoppers, and needle shields.
“Aptar Stelmi is benefiting from the growth in the injectable drug delivery industry and the current production facilities are nearly at full capacity" Hagge said. "While our long-term objective is to establish a production facility closer to growing markets outside of Europe, our initial investment in capacity expansion will be at Aptar Stelmi’s existing facilities in Europe. This will allow us to better serve our existing customers and integrate the
new technology before we expand globally.”
After decades of serving customers in the Andean region by importing products from various facilities, AptarGroup is establishing a production facility in Colombia which is intended to be operational by mid-2014. In addition to regional customers, several of Aptar’s multinational customers have operations in the region.
“We have been selling into the Andean region for some time and we want to better serve our customers with a local facility,” Hagge said. “Our initial capital investment in this operation is expected to be approximately $5 million over the next 18 months. We are optimistic about the growth potential for each of our segments in this region.”
AptarGroup expects earnings per share for the third quarter, before costs associated with its European Operations Optimization plan, to be in the range of 68 cents to 78 cents, compared to 62 cents per share reported in the prior year. Prior year results include a negative impact of 2 cents per share from Aptar Stelmi’s results which included acquisition accounting adjustments.
“Looking to the third quarter, we anticipate that each of our business segments will grow over the prior year," Hagge said. "Even though we expect challenges in several of the markets we serve, the diversity of our product portfolio, geographic presence, customer base and end markets, protect us from exposure to softness in any particular market or region.”