AptarGroup 3Q profit drops 16 pct on weaker sales

AptarGroup 3rd-quarter profit drops 16 percent as sales slide; S America acquisition completed

• On 6:24 pm EDT, Wednesday October 14, 2009

CRYSTAL LAKE, Ill. (AP) -- AptarGroup Inc., which makes dispensers for perfumes and other liquids, said Wednesday its third-quarter profit sank nearly 16 percent on slumping sales.

The company also said it completed an acquisition in South America and declared a quarterly cash dividend of 15 cents per share payable Nov. 18 to shareholders of record as of Oct. 28.

AptarGroup said net income fell to $33.5 million, or 48 cents per share, for the three months ended Sept. 30. That compares with earnings of $39.7 million, or 57 cents per share, in the year-earlier period.

Sales decreased 11 percent to $473.7 million from $532.2 million a year earlier. Product and custom tooling sales dropped 7 percent. Currency exchange rate changes accounted for 5 percent of the decline and acquisitions added 1 percent.

Analysts polled by Thomson Reuters expected 47 cents per share on revenue of $466.1 million. Those estimates typically exclude one-time items.

"Many of our customers remained cautious in the quarter, but we believe inventory reductions were reaching an end in certain markets and our third quarter results improved sequentially over our second quarter results," Peter Pfeiffer, the company's president and CEO, said in a statement.

AptarGroup said it completed its acquisition of Covit do Brasil Componentes de Aluminio para Perfumaria Ltda. (Covit do Brasil), which develops and supplies anodized aluminum parts for the fragrance and cosmetic market, for about $7.6 million.

For the fourth quarter, the company said it expects earnings of 43 cents to 48 cents per share versus 46 cents per share in the year-earlier period. Analysts predict 46 cents per share.

AptarGroup shares rose 85 cents, or 2.2 percent, to close at $38.89. After-hours, they sank 90 cents, or 2.3 percent, to $37.99.

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