NEENAH, Wis. (AP) -- Food packaging maker Bemis Co.'s fourth-quarter net income slumped 62 percent as resin prices rose and demand fell, but its adjusted earnings beat Wall Street's forecast.
Its shares gained $1.79, or 6 percent, rising to $31.78 by early afternoon. They have traded in a range of $27.21 to $34.40 the past year.
President and CEO Henry Theisen said in a statement that increased food costs cut consumer demand for many of its customers' products last year, with the trend likely to continue through the first half of 2012.
Bemis reported Wednesday that it earned $20.1 million, or 19 cents per share, for the three months that ended Dec. 31. That's down from $53.3 million, or 48 cents per share, a year earlier.
Excluding plant consolidation and acquisition-related charges, earnings were 45 cents per share.
This topped the adjusted earnings of 39 cents per share that analysts surveyed by FactSet expected.
Bemis said it is closing five plants, with two closures completed earlier this month. The Neenah, Wis. company said the closings will help to cut fixed cuts and make it more efficient, but that its plans led to the elimination of administrative and production employees during the quarter. It did not specify how many reductions were made.
Revenue climbed 2 percent to $1.27 billion from $1.25 billion, benefiting from higher flexible packaging sales due to acquisitions.
The performance topped the $1.24 billion that Wall Street forecast.
For the full year, earnings fell 12 percent to $181.4 million, or $1.70 per share, from $205.1 million, or $1.85 per share, in the previous year.
Adjusted earnings were $1.99 per share.
Full-year revenue increased 10 percent to $5.32 billion from $4.84 billion.
Bemis anticipates first-quarter adjusted earnings of 43 cents to 49 cents per share and 2012 adjusted earnings of $2.05 to $2.20 per share.
Wall Street expects first-quarter earnings of 47 cents per share and 2012 earnings of $2.14 per share.
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