"After an excellent performance this past quarter, I am pleased to report a strong set of results for 2011 despite the unsettled macroeconomic backdrop that prevailed the entire year,” says Geoffrey T. Martin, president and chief executive officer. “Foreign currency effects were nominal for the fourth quarter but moderately negative for the year.
"Sales increases in all geographic regions, including Europe, underpinned an unusually strong 13% fourth quarter sales growth rate for CCL Label. Operating income gains were held to 8% by higher input costs in certain product lines,” Martin adds. “Additionally, the floods in Thailand temporarily impaired many of our customers' operations in the country affecting label demand and trimming three cents a share from the company's fourth quarter net earnings. No damage was done to any of our facilities in Bangkok. The robust performance was broad based across most global product lines and end-use markets but was particularly strong in both the Sleeve and Healthcare & Specialty sectors. CCL Label's annual revenues in 2011 passed the $1 billion milestone for the first time with solid organic growth and modest profitability improvement.”
According to the report, each business segment recorded strong organic growth for the fourth quarter of 2011 when compared to the same period in 2010. Operating income for the fourth quarter of 2011 was $35.4 million, an increase of 16.4% compared to $30.4 million for the comparable quarter in 2010. Strong organic growth, coupled with pricing programs and productivity initiatives drove improvements in CCL’s label, tube, and container divisions.
"The fourth quarter also included a first time contribution from Pacman-CCL, the company's new investment in the Middle East,” Martin says. “Together with much improved profitability at our investment in Russia, consolidated fourth quarter net earnings from these joint ventures totaled four cents per share."
Donald G. Lang, executive chairman, additionally announced: "After more than 17 years as a Director, with nine of them as Chairman of the Board and three as Lead Director, Jon Grant has announced his plans to retire in May of this year and therefore will not stand for re-election at the company's Annual General Meeting on May 3, 2012. Jon was Chairman of the Board during a period of substantial change and growth and helped to navigate the Company's transition to the global leadership position it holds today. He has also contributed to the deliberations of the Environmental, Health and Safety, Nominating and Governance and Human Resources committees either as the chairman or as a member over the years. His knowledge of the company, our industry and the environment in which we operate will be missed and we thank him for his guidance over his many years as a Director."
For more information, visit www.cclind.com.