Operating income (a non-IFRS measure; see note 2 below) for 2012 was $178.4 million, an increase of 9.0% compared to $163.7 million for 2011; and an increase of 12.2% excluding the impact of foreign currency translation. This reflects solid improvements in all three of the Company's Segments: Label, Container and Tube.
Earnings before net finance cost, taxes, earnings in equity accounted investments, depreciation, amortization and restructuring and other items ("EBITDA" a non-IFRS measure; see note 1 below) was $254.6 million for 2012, an increase of 6.5%, compared to $239.1 million posted in 2011. Excluding the unfavourable impact of foreign currency translation, EBITDA increased by 9.5% over the prior year.
In addition to the improvements recorded at the business segments, net finance cost for the year decreased $0.5 million compared to 2011. The Company's joint ventures in Russia, the Middle East and Chile contributed $2.2 million equity earnings compared to $1.2 million in 2011 due to particularly strong results at Pacman-CCL, despite the start-up costs at the new plant in Santiago.
In 2012, the consolidated effective tax rate was 27.3% compared to 29.0% in 2011, excluding earnings in equity accounted investments. The decrease in the effective tax rate for 2012 is attributable to the positive impact of $0.3 million, versus a negative impact of $1.0 million in 2011, for the recognition of accounting benefits of certain Canadian tax losses. The accounting treatment of the benefit associated with Canadian tax losses is mainly dependent on the movement of the unrealized foreign exchange gains on the Company's U.S. dollar-denominated debt. Excluding the benefit from the Canadian tax losses, the overall effective tax rates in 2012 and 2011 were 27.5% and 28.1%, respectively, reflecting a higher portion of the Company's income earned in lower tax jurisdictions in 2012.
Net earnings for 2012 increased 15.9% to $97.5 million, compared to $84.1 million for 2011, due to the improvement in operating income across all business segments, a reduction in net finance cost and a lower effective tax rate partially offset by an increase in corporate expenses and other selling, general and administrative expenses.
Basic earnings per Class B share for 2012 were $2.91 compared to $2.54 per class B share in 2011. No expenses for restructuring and other items were incurred for 2012; however 2011 results included a $0.03 per Class B share charge for restructuring and other items.
Fourth Quarter 2012 Results
Sales for the fourth quarter of 2012 were $313.5 million, compared to $317.3 million in the prior year period. Excluding currency translation, sales for the fourth quarter in 2012 increased by 2.8% compared to the prior year period. This increase was due to 2.3% of organic growth and 0.5% impact from acquisitions. The Label Segment increased revenue 3.9%, while the Container and Tube Segments experienced a decline in revenue of 0.9% and 3.1%, respectively.
Operating income (a non-IFRS measure; see note 2 below) for the fourth quarter of 2012 was $38.6 million, an increase of 9.0% compared to $35.4 million for the comparable quarter of 2011. The Label segment posted a solid 12.9% increase in operating income while the Container segment was flat to 2011 and Tube segment declined.
EBITDA (a non-IFRS measure; see note 1 below) was $57.7 million for the fourth quarter of 2012, an increase of 5.5% compared to $54.7 million for the fourth quarter of 2011, and a 10.8% increase excluding the negative impact of currency.
Most Popular Stories
- Bipartisan Budget Deal Gets Key Support in House
- GM to Stop Making Autos in Australia
- Clinton to Keynote Annual Simmons Leadership Conference
- Selena Gomez, Shakira Among Top Hispanic Searches
- How to Survive a Subzero Stranding
- Budget Deal Sets Off Grumbles in Both Houses
- It's Primary Time in Texas
- N.M. Dems Say Nonprofit Helping Martinez Campaign
- How Bitcoin and Other Cryptocurrencies Work
- Deficit Shrinks, Hiring Grows as Economy Improves