AptarGroup: All-Time High Quarterly Results

AptarGroup (NYSE:ATR) a supplier in the packaging industry of a broad range of dispensing systems for the fragrance, cosmetic, personal care, pharmaceutical, household and food/beverage markets boosts dividend by 33 percent to $.81 per share compared to $.61 per share in the prior year as a result of record a breaking second quarter.

A 14 percent increase in sales for the quarter ended June 30, 2005 brought in $356.1 million from $311.8 million in the prior year. Net income for the second quarter of 2005 increased to a $29.3 million from $22.8 million in 2004. Reduced income taxes of approximately $3.2 million ($.09 per diluted share) related to research and development credits in the U.S. and tax changes in Italy helped boost Aptars net income.

Commenting on the quarter, Carl A. Siebel, President and Chief Executive Officer of Aptar said, "We are pleased to report that we continued to build on the momentum we experienced in the first quarter. We achieved a record level of quarterly sales as a result of strong demand for our products from the personal care, pharmaceutical, household and food/beverage markets. Sales to the fragrance/cosmetic market slowed in the quarter and were approximately equal to the prior year's level."

Siebel added, "With increased volumes, we were able to leverage our infrastructure and realize operating efficiencies. In addition, we were successful in passing through the majority of our raw material cost increases. These factors contributed to our record earnings per share."

Siebel further commented, "We are optimistic that the trends we have experienced in the second quarter will continue into the third quarter. At the present time, we believe demand for our dispensing systems from all of the markets we serve, other than the fragrance/cosmetic market, will improve over prior year levels. In addition, we plan to reduce and redeploy certain personnel at our French fragrance/cosmetic operations. We plan to implement this program over a three year period and we expect to realize cost savings over time. Anticipated charges related to the first phase of this effort will be approximately $3 million in the second half of 2005 and will be recorded in the quarter in which they are recognizable for accounting purposes."

Siebel concluded, "Excluding any effects of this program, we expect diluted earnings per share for the third quarter of 2005 to be in the range of $.70 to $.75 compared to $.68 per share in the prior year."