LINCOLNSHIRE, Ill. (AP) -- Office products maker Acco Brands Corp. said Wednesday that its fourth-quarter profit jumped nearly 40 percent from the year before although sales fell slightly. The results beat Wall Street expectations and shares rose in morning trading.
Acco Brands boosted its profits in part by trimming costs. Total costs of goods sold fell 3 percent during the quarter from the year before.
Net income during the quarter ended Dec. 31 was $9.4 million, or 16 cents per share, compared to $6.8 million, or 12 cents per share, during the same period a year ago. Revenue was $350.7 million, down slightly from $359.5 million.
The company's adjusted net income, excluding one-time items like acquisition costs, was 29 cents per share, compared to an adjusted 23 cents per share the year before. That beat analysts' expectations for 28 cents per share, according to FactSet. Revenue was lower than the $426.2 million analysts forecast.
Acco said its adjusted net income excludes $4.1 million in costs associated with its pending acquisition of MeadWestvaco Corp.'s consumer and office product division.
U.S. and Canadian antitrust regulators this week ended the waiting period for that acquisition to be completed. ACCO expects the deal to close in the second quarter of the year. MeadWestvaco announced in November that it would spin off its consumer and office products division to Acco in a deal worth $860 million.
ACCO plans to streamline its sales and operations functions in the U.S. and Europe, shaving off $5 million to $7 million in costs during the year. After 2012, the changes should save about $8 million a year going forward, the company said. Acco Brands expects to spend between $5 million and $7 million for restructuring charges in the current quarter for severance packages and other expenses.
The company expects flat revenue in 2012. It said its forecast does not include any impact from the pending acquisition of MeadWestvaco's business.
For the full year of 2011, the company reported net income of $56.7 million, or 98 cents per share, compared to $12.4 million, or 22 cents per share in 2010. Revenue was $1.32 billion, up 3 percent, from $1.28 billion the year before.
Shares rose 38 cents, or 3.4 percent, to $11.65 in morning trading.
There are no comments yet