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FORM 8-K
APTARGROUP INC - ATR
Filed: July 17, 2009 (period: July 16, 2009)
Report of unscheduled material events or corporate changes.
Table of Contents
8-K - APTARGROUP, INC. 8-K

Item 2.02     Results of Operations and Financial Condition.

Item 9.01     Financial Statements and Exhibits.

SIGNATURES
Exhibit Index
EX-99.1 (EXHIBIT 99.1)

EX-99.2 (EXHIBIT 99.2)
UNITED STATES
                                    SECURITIES AND EXCHANGE COMMISSION
                                             Washington, D.C. 20549

                                                          FORM 8-K
                                               CURRENT REPORT
                       Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

                                                         July 16, 2009
                                         Date of Report (Date of earliest event reported)


                                                     AptarGroup, Inc.
                                     (Exact name of registrant as specified in its charter)

                 Delaware                                       1-11846                                     36-3853103

       (State or other jurisdiction of                (Commission File Number)                   (IRS Employer Identification No.)
               incorporation)

                                  475 West Terra Cotta Avenue, Suite E, Crystal Lake, Illinois 60014

                                                (Address of principal executive offices)

                                  Registrant’s telephone number, including area code: 815-477-0424.


                                                                  N/A

                                     (Former name or former address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Source: APTARGROUP INC, 8-K, July 17, 2009
Item 2.02     Results of Operations and Financial Condition.


      On July 16, 2009, AptarGroup, Inc. (“AptarGroup”) announced its results of operations and financial condition for the quarter
and six months ended June 30, 2009. The press release regarding this announcement is furnished as Exhibit 99.1 hereto.

      Effective with the announcement of the results of operations and financial condition for the quarter and six months ended June
30, 2009, AptarGroup revised its income statement presentation relating to a French research and development tax credit by
reclassifying amounts from Provision for Income Taxes to Selling, Research & Development and Administrative. Prior period
information has been conformed to the new format and certain information is furnished as Exhibit 99.2 hereto.

      The information in Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing
under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.


Item 9.01     Financial Statements and Exhibits.


     (d) Exhibits


     99.1    Press release issued by AptarGroup, Inc. dated July 16, 2009.


     99.2    Information for the quarter ended March 31, 2009 and the quarters ended
             March 31, June 30, September 30, and December 31, 2008 and 2007.




Source: APTARGROUP INC, 8-K, July 17, 2009
SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                                                         AptarGroup, Inc.



Date: July 16, 2009                                                By:   /s/ Stephen J. Hagge

                                                                         Stephen J. Hagge

                                                                         Executive Vice President and Chief
                                                                         Operating Officer




Source: APTARGROUP INC, 8-K, July 17, 2009
Exhibit Index




99.1         Press Release issued by AptarGroup, Inc. dated July 16, 2009.



99.2         Information for the quarter ended March 31, 2009 and the quarters ended March 31, June 30, September 30, and
             December 31, 2008 and 2007.




Source: APTARGROUP INC, 8-K, July 17, 2009
Exhibit 99.1

                                      AptarGroup Reports Second Quarter Results;
                                             Declares Quarterly Dividend
CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--July 16, 2009--AptarGroup, Inc. (NYSE:ATR) today reported second quarter results
and declared a quarterly cash dividend of $.15 per share.

                                                    Second Quarter 2009 Summary

        • All segments remained profitable despite weak economic conditions
        • Year-to-year sales declined 20% on an absolute basis but declined only 11% excluding changes in currency rates
        • Operating income declined 28%, including a $3.1 million charge for facilities consolidation and other severance costs
        • Cost saving efforts contributed to a sequential improvement in operating margin percentage

SECOND QUARTER RESULTS

For the quarter ended June 30, 2009, sales decreased 20% to $440.5 million from $551.3 million a year ago. Product and custom
tooling sales declined 11% and changes in exchange rates accounted for the remaining 9% decline.

                                         Second Quarter Segment Sales Analysis

                                               (Change From Prior Year)



                                                         Beauty
                                                           &                                               Total

                                                          Home            Closures      Pharma          AptarGroup

Product and Custom Tooling Sales                           -17%                  -8%       -2%                -11%

Currency Effects                                            -9%                  -9%      -10%                 -9%

Acquisitions                                                 0%                   2%        0%                     0%

Reported Change in Sales                                   -26%                  -15%     -12%                -20%




Source: APTARGROUP INC, 8-K, July 17, 2009
Commenting on the quarter, Peter Pfeiffer, President and CEO, said, “All segments continued to navigate well through a very difficult
business environment. Each of our business segments had profitable quarters, retained their market shares, successfully executed a
variety of cost savings initiatives and continued to invest in new product development.”

Pfeiffer added, “Our Beauty & Home segment continued to be the most impacted by economic conditions, especially in developed
markets. Sales to the fragrance/cosmetic market dropped significantly and this explains the majority of the segment’s 17%
year-to-year decline in sales excluding currency effects. Beauty & Home segment income declined 58% to $11.1 million, including
approximately $.3 million of expense related to the facilities consolidation and severance (“consolidation/severance”) programs,
compared to the prior year primarily due to underutilized capacity.

“The Closures segment’s sales decline of 8%, excluding currency effects, primarily reflects the pass-through of resin cost decreases.
Excluding the impact of exchange rate changes, a decline in sales to the personal care market was offset by strong sales to the
food/beverage market. Closures segment income increased 10% to $13.7 million despite a $2.8 million charge relating to
consolidation/severance expenses. A variety of cost saving programs is having a noticeable effect in this segment.”

Pfeiffer continued, “Our Pharma segment’s sales, excluding currency effects, were down 2% from the prior year. Pharma segment
income declined 12% to $31.3 million primarily due to changes in currency exchange rates.”

On a consolidated basis, operating income declined 28% to $48.0 million (including approximately $3.1 million of
consolidation/severance expenses), down from $66.6 million a year ago.

Reported diluted earnings per share, which include the consolidation/severance expenses, decreased 36% to $.41 per share. Diluted
earnings per share, excluding consolidation/severance expenses, decreased 31% to $.44 compared to $.64 per share in the prior year.

YEAR-TO-DATE RESULTS

Year-to-date sales decreased 19% to $872.3 million from approximately $1.1 billion a year ago. Product and custom tooling sales
declined 11%, changes in exchange rates accounted for 9% of the decrease and acquisitions contributed 1% to sales.

Operating income decreased 28% to $88.5 million (including approximately $3.1 million of consolidation/severance expenses) down
from $122.6 million a year ago. Reported diluted earnings per share, which include the consolidation/severance expenses, decreased
32% to $.79 per share. Diluted earnings per share, excluding consolidation/severance expenses, decreased 29% to $.82 compared to
$1.16 per share in the prior year.




Source: APTARGROUP INC, 8-K, July 17, 2009
FACILITIES CONSOLIDATION AND SEVERANCE PROGRAMS

The Company had previously announced a plan to consolidate two French dispensing closure manufacturing facilities and several
sales offices in North America and Europe and has subsequently expanded the program to include additional headcount reductions.
The total costs associated with the consolidation/severance programs are estimated to be approximately $7 million, of which $3.1
million was recorded in the second quarter of 2009. The majority of the remaining costs are expected to be recorded as incurred over
the next two quarters. Annual savings are estimated to be in the range of $3 million to $4 million primarily beginning in 2010.

OUTLOOK

Pfeiffer added, “While we are encouraged that late second quarter activity seems to indicate that things may be stabilizing in some of
the hardest hit markets, visibility remains very low and uncertainty remains. We also believe that the road out from the bottom of these
markets will not be a rapid ascent, but rather a prolonged, gradual journey. Our customers know in these stressful times they can count
on stable partners like AptarGroup and we will continue to offer outstanding service and the industry’s best dispensing systems. We
will continue to diligently control costs and maintain our strong balance sheet while generating fresh new ideas through research and
development. Excluding facilities consolidation and severance program charges, we anticipate diluted earnings per share for the third
quarter to be in the range of $.44 to $.49 per share compared to $.57 per share in the prior year.”

CASH DIVIDEND AND SHARE REPURCHASE PROGRAM

The Board of Directors declared a quarterly dividend of $.15 per share, payable August 19, 2009 to shareholders of record as of July
29, 2009.

During the quarter, the Company repurchased approximately 108,000 shares of common stock for approximately $3.4 million leaving
approximately 4.3 million shares authorized for repurchase at the end of the second quarter.

OPEN CONFERENCE CALL

There will be a conference call on Friday, July 17, 2009 at 8:00 a.m. CDT to discuss the Company’s second quarter results for 2009.
The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations
page at www.aptargroup.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site.

AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal
care, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with
manufacturing facilities in North America, Europe, Asia, and South America. For more information, visit the AptarGroup web site at
www.aptargroup.com.

This press release contains forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management’s
beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results
may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and
uncertainties that exist including, but not limited to, economic, environmental or political conditions in the various markets and
countries in which AptarGroup operates, changes in customer and/or consumer spending levels; financial conditions of customers
and suppliers; fluctuations in the cost of raw materials, components and other input costs; the Company’s ability to increase prices,
contain costs and improve productivity; changes in capital availability or cost, including interest rate fluctuations; the competitive
marketplace; fiscal and monetary policy; changes in foreign currency exchange rates; direct or indirect consequences of acts of war
or terrorism; and labor relations. For additional information on these and other risks and uncertainties, please see AptarGroup’s
filings with the Securities and Exchange Commission, including its Form 10-K’s and Form 10-Q’s. Readers are cautioned not to place
undue reliance on forward-looking statements. AptarGroup undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.




Source: APTARGROUP INC, 8-K, July 17, 2009
APTARGROUP, INC.

                                                   Condensed Consolidated Financial Statements (Unaudited)



                                                             (In Thousands, Except Per Share Data)

                                                        CONSOLIDATED STATEMENTS OF INCOME



                                                                            Three Months Ended                           Six Months Ended

                                                                                 June 30,                                    June 30,

                                                                     2009                        2008           2009                         2008



Net Sales                                                         $ 440,508                 $ 551,319        $ 872,324                  $ 1,083,577

Cost of Sales (exclusive of depreciation

  shown below)                                                     288,826                   372,908          578,547                       735,688

Selling, Research & Development and

  Administrative (1)                                                 69,163                    77,451         140,601                       157,943

Depreciation and Other Amortization                                  31,435                    34,372          61,536                        67,327

Facilities Consolidation and Severance Expenses                       3,095                             -       3,095                               -

Operating Income (2)                                                 47,989                    66,588          88,545                       122,619

Other Income/(Expense):

  Interest Expense                                                   (5,157 )                    (4,336 )       (8,604 )                      (8,943 )

  Interest Income                                                       711                      3,410          1,986                         6,859

  Equity in Results of Affiliates                                         0                          126            0                           223

  Miscellaneous, net                                                 (1,110 )                        259        (1,229 )                       (685 )

Income before Income Taxes                                           42,433                    66,047          80,698                       120,073

Provision for Income Taxes (1)                                       13,961                    20,771          25,632                        37,918

Net Income                                                         $ 28,472                  $ 45,276         $ 55,066                      $ 82,155



Net (Income)/Loss Attributable to Noncontrolling
Interests                                                               (12 )                         (3 )         59                            19

Net Income Attributable to AptarGroup, Inc.                        $ 28,460                  $ 45,273         $ 55,125                      $ 82,174

Net Income Attributable to AptarGroup, Inc. Per
Common Share:

  Basic                                                              $ 0.42                      $ 0.67         $ 0.81                        $ 1.21

  Diluted                                                            $ 0.41                      $ 0.64         $ 0.79                        $ 1.16




Average Numbers of Shares Outstanding:

  Basic                                                              67,705                    68,038          67,691                        68,103



Source: APTARGROUP INC, 8-K, July 17, 2009
Diluted                                                                69,293                      70,563                     69,660                       71,032



(1) - In order to be comparable to the current period presentation, the Company has revised its presentation relating to a French research and development tax credit by
reclassifying amounts from Provision for Income Taxes to Selling, Research & Development and Administrative. See Footnote (2) to Segment Information for further
details.



(2) - Included in total Operating Income are expenses related to stock options of approximately $1.7 million and $6.8 million in the second quarter and first six months,
respectively, of 2009, and $1.4 million and $8.6 million in the second quarter and first six months, respectively, of 2008.




Source: APTARGROUP INC, 8-K, July 17, 2009
APTARGROUP, INC.

                                    Condensed Consolidated Financial Statements (Unaudited)

                                                          (continued)

                                                        (In Thousands)

                                             CONSOLIDATED BALANCE SHEETS



                                                                             June 30,          December
                                                                                2009            31, 2008

ASSETS



Cash and Equivalents                                                        $ 249,076          $ 192,072

Receivables, net                                                             315,614             343,937

Inventories                                                                  232,554             244,775

Other Current Assets                                                          67,214              78,965

  Total Current Assets                                                       864,458             859,749

Net Property, Plant and Equipment                                            735,338             720,882

Goodwill, net                                                                227,276             227,041

Other Assets                                                                  23,083              24,150

Total Assets                                                              $ 1,850,155         $ 1,831,822




LIABILITIES AND EQUITY



Short-Term Obligations                                                       $ 88,501           $ 64,619

Accounts Payable and Accrued Liabilities                                     280,229             310,408

  Total Current Liabilities                                                  368,730             375,027

Long-Term Obligations                                                        207,626             226,888

Deferred Liabilities                                                          89,914              98,109

Total Liabilities                                                            666,270             700,024



AptarGroup, Inc. Stockholders' Equity                                       1,183,128          1,131,030

Noncontrolling Interests in Subsidiaries                                         757                 768

Total Equity                                                                1,183,885          1,131,798




Total Liabilities and Equity                                              $ 1,850,155         $ 1,831,822




Source: APTARGROUP INC, 8-K, July 17, 2009
APTARGROUP, INC.

                                                   Condensed Consolidated Financial Statements (Unaudited)

                                                                             (continued)

                                                                           (In Thousands)

                                                                   SEGMENT INFORMATION



                                                                                      Three Months Ended                                  Six Months Ended

                                                                                            June 30,                                          June 30,




                                                                                  2009                    2008                   2009                        2008

NET SALES

Beauty & Home                                                                 $ 213,941                $ 288,911             $ 425,613                    $ 572,674

Closures                                                                       123,087                  144,245                240,263                      278,521

Pharma                                                                         103,522                  118,162                206,447                      232,377

Other                                                                               (42 )                     1                       1                             5

Total Net Sales                                                               $ 440,508                $ 551,319             $ 872,324                   $ 1,083,577




SEGMENT INCOME (1)

Beauty & Home (2)                                                              $ 11,143                 $ 26,301               $ 21,954                    $ 55,042

Closures (2)                                                                     13,740                  12,493                 25,357                       23,317

Pharma (2)                                                                       31,279                  35,561                 60,483                       66,094

Corporate Expenses and Other                                                     (9,295 )                 (7,385 )              (20,419 )                   (22,277 )

Total Income Before Interest and Taxes                                         $ 46,867                 $ 66,970               $ 87,375                   $ 122,176

Interest Expense, Net                                                            (4,446 )                  (926 )                (6,618 )                     (2,084 )

Net Income/(Loss) Attributable to Noncontrolling Interests                           12                       3                     (59 )                       (19 )

Income before Income Taxes                                                     $ 42,433                 $ 66,047               $ 80,698                   $ 120,073




SEGMENT INCOME AS % OF NET SALES

Beauty & Home                                                                       5.2 %                    9.1 %                  5.2 %                        9.6 %

Closures                                                                           11.2 %                    8.7 %                 10.6 %                        8.4 %

Pharma                                                                             30.2 %                   30.1 %                 29.3 %                      28.4 %



Notes to Condensed Consolidated Financial Statements:

(1) - The Company evaluates performance of its business units and allocates resources based upon income before interest expense net of interest income, stock option
and corporate expenses, income taxes and certain unusual items.




Source: APTARGROUP INC, 8-K, July 17, 2009
(2) Included in the segment income figures reported above, are consolidation/severance expenses and reclassified research & development tax credits as follows:



CONSOLIDATION/SEVERANCE EXPENSES

Beauty & Home                                                                    $ (257 )                    $-                  $ (257 )                     $-

Closures                                                                         (2,838 )                      -                 (2,838 )                          -

Pharma                                                                                 -                       -                      -                            -

Total Consolidation/Severance Expenses                                         $ (3,095 )                    $-                $ (3,095 )                     $-




RESEARCH & DEVELOPMENT TAX CREDITS

Beauty & Home                                                                     $ 475                   $ 356                   $ 950                    $ 697

Closures                                                                               -                       -                      -                           20

Pharma                                                                              775                   1,012                   1,550                    1,983

Total Research & Development Tax Credits                                        $ 1,250                 $ 1,368                 $ 2,500                   $ 2,700




CONTACT:
Stephen J. Hagge
AptarGroup, Inc.
815-477-0424




Source: APTARGROUP INC, 8-K, July 17, 2009
Exhibit 99.2



                              Information for the quarter ended March 31, 2009 and the quarters ended
                                March 31, June 30, September 30, and December 31, 2008 and 2007




                                             1Q 2009



Selling, Research &

  Development and

  Administrative                     $        71,438



Operating Income                              40,556



Income before Income Taxes                    38,265



Provision for Income Taxes                   (11,671 )



Segment Income:

  Beauty & Home                               10,811

  Closures                                    11,617

  Pharma                                      29,204




                                             1Q 2008          2Q 2008            3Q 2008                4Q 2008         Total for 2008



Selling, Research &

  Development and

  Administrative                     $        80,492     $     77,451      $       72,528      $         64,623     $         295,094



Operating Income                              56,031           66,588              60,478                51,074               234,171



Income before Income Taxes                    54,026           66,047              58,251                48,402               226,726



Provision for Income Taxes                   (17,147 )         (20,771 )          (18,557 )             (16,750 )             (73,225 )



Segment Income:

  Beauty & Home                               28,741           26,301              21,409                13,273                89,724



Source: APTARGROUP INC, 8-K, July 17, 2009
Closures                                    10,824          12,493          12,280           8,337                43,934

  Pharma                                      30,533          35,561          35,077          28,420               129,591




                                             1Q 2007         2Q 2007         3Q 2007         4Q 2007         Total for 2007



Selling, Research &

  Development and

  Administrative                     $        73,154     $    65,299     $    65,258     $    68,366     $         272,077



Operating Income                              47,190          58,038          57,931          49,692               212,851



Income before Income Taxes                    43,736          54,473          55,128          48,744               202,081



Provision for Income Taxes                   (14,173 )       (17,506 )       (15,711 )       (15,217 )             (62,607 )



Segment Income:

  Beauty & Home                               25,500          25,687          24,671          19,777                95,635

  Closures                                    13,741          13,046          11,988           9,442                48,217

  Pharma                                      22,772          26,459          29,444          27,299               105,974




_______________________________________________
Created by 10KWizard www.10KWizard.com




Source: APTARGROUP INC, 8-K, July 17, 2009

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Q2 2009 Earning Report of Aptar Group, Inc.

  • 1. FORM 8-K APTARGROUP INC - ATR Filed: July 17, 2009 (period: July 16, 2009) Report of unscheduled material events or corporate changes.
  • 2. Table of Contents 8-K - APTARGROUP, INC. 8-K Item 2.02 Results of Operations and Financial Condition. Item 9.01 Financial Statements and Exhibits. SIGNATURES Exhibit Index EX-99.1 (EXHIBIT 99.1) EX-99.2 (EXHIBIT 99.2)
  • 3. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 July 16, 2009 Date of Report (Date of earliest event reported) AptarGroup, Inc. (Exact name of registrant as specified in its charter) Delaware 1-11846 36-3853103 (State or other jurisdiction of (Commission File Number) (IRS Employer Identification No.) incorporation) 475 West Terra Cotta Avenue, Suite E, Crystal Lake, Illinois 60014 (Address of principal executive offices) Registrant’s telephone number, including area code: 815-477-0424. N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Source: APTARGROUP INC, 8-K, July 17, 2009
  • 4. Item 2.02 Results of Operations and Financial Condition. On July 16, 2009, AptarGroup, Inc. (“AptarGroup”) announced its results of operations and financial condition for the quarter and six months ended June 30, 2009. The press release regarding this announcement is furnished as Exhibit 99.1 hereto. Effective with the announcement of the results of operations and financial condition for the quarter and six months ended June 30, 2009, AptarGroup revised its income statement presentation relating to a French research and development tax credit by reclassifying amounts from Provision for Income Taxes to Selling, Research & Development and Administrative. Prior period information has been conformed to the new format and certain information is furnished as Exhibit 99.2 hereto. The information in Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. Item 9.01 Financial Statements and Exhibits. (d) Exhibits 99.1 Press release issued by AptarGroup, Inc. dated July 16, 2009. 99.2 Information for the quarter ended March 31, 2009 and the quarters ended March 31, June 30, September 30, and December 31, 2008 and 2007. Source: APTARGROUP INC, 8-K, July 17, 2009
  • 5. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AptarGroup, Inc. Date: July 16, 2009 By: /s/ Stephen J. Hagge Stephen J. Hagge Executive Vice President and Chief Operating Officer Source: APTARGROUP INC, 8-K, July 17, 2009
  • 6. Exhibit Index 99.1 Press Release issued by AptarGroup, Inc. dated July 16, 2009. 99.2 Information for the quarter ended March 31, 2009 and the quarters ended March 31, June 30, September 30, and December 31, 2008 and 2007. Source: APTARGROUP INC, 8-K, July 17, 2009
  • 7. Exhibit 99.1 AptarGroup Reports Second Quarter Results; Declares Quarterly Dividend CRYSTAL LAKE, Ill.--(BUSINESS WIRE)--July 16, 2009--AptarGroup, Inc. (NYSE:ATR) today reported second quarter results and declared a quarterly cash dividend of $.15 per share. Second Quarter 2009 Summary • All segments remained profitable despite weak economic conditions • Year-to-year sales declined 20% on an absolute basis but declined only 11% excluding changes in currency rates • Operating income declined 28%, including a $3.1 million charge for facilities consolidation and other severance costs • Cost saving efforts contributed to a sequential improvement in operating margin percentage SECOND QUARTER RESULTS For the quarter ended June 30, 2009, sales decreased 20% to $440.5 million from $551.3 million a year ago. Product and custom tooling sales declined 11% and changes in exchange rates accounted for the remaining 9% decline. Second Quarter Segment Sales Analysis (Change From Prior Year) Beauty & Total Home Closures Pharma AptarGroup Product and Custom Tooling Sales -17% -8% -2% -11% Currency Effects -9% -9% -10% -9% Acquisitions 0% 2% 0% 0% Reported Change in Sales -26% -15% -12% -20% Source: APTARGROUP INC, 8-K, July 17, 2009
  • 8. Commenting on the quarter, Peter Pfeiffer, President and CEO, said, “All segments continued to navigate well through a very difficult business environment. Each of our business segments had profitable quarters, retained their market shares, successfully executed a variety of cost savings initiatives and continued to invest in new product development.” Pfeiffer added, “Our Beauty & Home segment continued to be the most impacted by economic conditions, especially in developed markets. Sales to the fragrance/cosmetic market dropped significantly and this explains the majority of the segment’s 17% year-to-year decline in sales excluding currency effects. Beauty & Home segment income declined 58% to $11.1 million, including approximately $.3 million of expense related to the facilities consolidation and severance (“consolidation/severance”) programs, compared to the prior year primarily due to underutilized capacity. “The Closures segment’s sales decline of 8%, excluding currency effects, primarily reflects the pass-through of resin cost decreases. Excluding the impact of exchange rate changes, a decline in sales to the personal care market was offset by strong sales to the food/beverage market. Closures segment income increased 10% to $13.7 million despite a $2.8 million charge relating to consolidation/severance expenses. A variety of cost saving programs is having a noticeable effect in this segment.” Pfeiffer continued, “Our Pharma segment’s sales, excluding currency effects, were down 2% from the prior year. Pharma segment income declined 12% to $31.3 million primarily due to changes in currency exchange rates.” On a consolidated basis, operating income declined 28% to $48.0 million (including approximately $3.1 million of consolidation/severance expenses), down from $66.6 million a year ago. Reported diluted earnings per share, which include the consolidation/severance expenses, decreased 36% to $.41 per share. Diluted earnings per share, excluding consolidation/severance expenses, decreased 31% to $.44 compared to $.64 per share in the prior year. YEAR-TO-DATE RESULTS Year-to-date sales decreased 19% to $872.3 million from approximately $1.1 billion a year ago. Product and custom tooling sales declined 11%, changes in exchange rates accounted for 9% of the decrease and acquisitions contributed 1% to sales. Operating income decreased 28% to $88.5 million (including approximately $3.1 million of consolidation/severance expenses) down from $122.6 million a year ago. Reported diluted earnings per share, which include the consolidation/severance expenses, decreased 32% to $.79 per share. Diluted earnings per share, excluding consolidation/severance expenses, decreased 29% to $.82 compared to $1.16 per share in the prior year. Source: APTARGROUP INC, 8-K, July 17, 2009
  • 9. FACILITIES CONSOLIDATION AND SEVERANCE PROGRAMS The Company had previously announced a plan to consolidate two French dispensing closure manufacturing facilities and several sales offices in North America and Europe and has subsequently expanded the program to include additional headcount reductions. The total costs associated with the consolidation/severance programs are estimated to be approximately $7 million, of which $3.1 million was recorded in the second quarter of 2009. The majority of the remaining costs are expected to be recorded as incurred over the next two quarters. Annual savings are estimated to be in the range of $3 million to $4 million primarily beginning in 2010. OUTLOOK Pfeiffer added, “While we are encouraged that late second quarter activity seems to indicate that things may be stabilizing in some of the hardest hit markets, visibility remains very low and uncertainty remains. We also believe that the road out from the bottom of these markets will not be a rapid ascent, but rather a prolonged, gradual journey. Our customers know in these stressful times they can count on stable partners like AptarGroup and we will continue to offer outstanding service and the industry’s best dispensing systems. We will continue to diligently control costs and maintain our strong balance sheet while generating fresh new ideas through research and development. Excluding facilities consolidation and severance program charges, we anticipate diluted earnings per share for the third quarter to be in the range of $.44 to $.49 per share compared to $.57 per share in the prior year.” CASH DIVIDEND AND SHARE REPURCHASE PROGRAM The Board of Directors declared a quarterly dividend of $.15 per share, payable August 19, 2009 to shareholders of record as of July 29, 2009. During the quarter, the Company repurchased approximately 108,000 shares of common stock for approximately $3.4 million leaving approximately 4.3 million shares authorized for repurchase at the end of the second quarter. OPEN CONFERENCE CALL There will be a conference call on Friday, July 17, 2009 at 8:00 a.m. CDT to discuss the Company’s second quarter results for 2009. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptargroup.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site. AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia, and South America. For more information, visit the AptarGroup web site at www.aptargroup.com. This press release contains forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management’s beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup’s actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, economic, environmental or political conditions in the various markets and countries in which AptarGroup operates, changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; fluctuations in the cost of raw materials, components and other input costs; the Company’s ability to increase prices, contain costs and improve productivity; changes in capital availability or cost, including interest rate fluctuations; the competitive marketplace; fiscal and monetary policy; changes in foreign currency exchange rates; direct or indirect consequences of acts of war or terrorism; and labor relations. For additional information on these and other risks and uncertainties, please see AptarGroup’s filings with the Securities and Exchange Commission, including its Form 10-K’s and Form 10-Q’s. Readers are cautioned not to place undue reliance on forward-looking statements. AptarGroup undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Source: APTARGROUP INC, 8-K, July 17, 2009
  • 10. APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except Per Share Data) CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Net Sales $ 440,508 $ 551,319 $ 872,324 $ 1,083,577 Cost of Sales (exclusive of depreciation shown below) 288,826 372,908 578,547 735,688 Selling, Research & Development and Administrative (1) 69,163 77,451 140,601 157,943 Depreciation and Other Amortization 31,435 34,372 61,536 67,327 Facilities Consolidation and Severance Expenses 3,095 - 3,095 - Operating Income (2) 47,989 66,588 88,545 122,619 Other Income/(Expense): Interest Expense (5,157 ) (4,336 ) (8,604 ) (8,943 ) Interest Income 711 3,410 1,986 6,859 Equity in Results of Affiliates 0 126 0 223 Miscellaneous, net (1,110 ) 259 (1,229 ) (685 ) Income before Income Taxes 42,433 66,047 80,698 120,073 Provision for Income Taxes (1) 13,961 20,771 25,632 37,918 Net Income $ 28,472 $ 45,276 $ 55,066 $ 82,155 Net (Income)/Loss Attributable to Noncontrolling Interests (12 ) (3 ) 59 19 Net Income Attributable to AptarGroup, Inc. $ 28,460 $ 45,273 $ 55,125 $ 82,174 Net Income Attributable to AptarGroup, Inc. Per Common Share: Basic $ 0.42 $ 0.67 $ 0.81 $ 1.21 Diluted $ 0.41 $ 0.64 $ 0.79 $ 1.16 Average Numbers of Shares Outstanding: Basic 67,705 68,038 67,691 68,103 Source: APTARGROUP INC, 8-K, July 17, 2009
  • 11. Diluted 69,293 70,563 69,660 71,032 (1) - In order to be comparable to the current period presentation, the Company has revised its presentation relating to a French research and development tax credit by reclassifying amounts from Provision for Income Taxes to Selling, Research & Development and Administrative. See Footnote (2) to Segment Information for further details. (2) - Included in total Operating Income are expenses related to stock options of approximately $1.7 million and $6.8 million in the second quarter and first six months, respectively, of 2009, and $1.4 million and $8.6 million in the second quarter and first six months, respectively, of 2008. Source: APTARGROUP INC, 8-K, July 17, 2009
  • 12. APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited) (continued) (In Thousands) CONSOLIDATED BALANCE SHEETS June 30, December 2009 31, 2008 ASSETS Cash and Equivalents $ 249,076 $ 192,072 Receivables, net 315,614 343,937 Inventories 232,554 244,775 Other Current Assets 67,214 78,965 Total Current Assets 864,458 859,749 Net Property, Plant and Equipment 735,338 720,882 Goodwill, net 227,276 227,041 Other Assets 23,083 24,150 Total Assets $ 1,850,155 $ 1,831,822 LIABILITIES AND EQUITY Short-Term Obligations $ 88,501 $ 64,619 Accounts Payable and Accrued Liabilities 280,229 310,408 Total Current Liabilities 368,730 375,027 Long-Term Obligations 207,626 226,888 Deferred Liabilities 89,914 98,109 Total Liabilities 666,270 700,024 AptarGroup, Inc. Stockholders' Equity 1,183,128 1,131,030 Noncontrolling Interests in Subsidiaries 757 768 Total Equity 1,183,885 1,131,798 Total Liabilities and Equity $ 1,850,155 $ 1,831,822 Source: APTARGROUP INC, 8-K, July 17, 2009
  • 13. APTARGROUP, INC. Condensed Consolidated Financial Statements (Unaudited) (continued) (In Thousands) SEGMENT INFORMATION Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 NET SALES Beauty & Home $ 213,941 $ 288,911 $ 425,613 $ 572,674 Closures 123,087 144,245 240,263 278,521 Pharma 103,522 118,162 206,447 232,377 Other (42 ) 1 1 5 Total Net Sales $ 440,508 $ 551,319 $ 872,324 $ 1,083,577 SEGMENT INCOME (1) Beauty & Home (2) $ 11,143 $ 26,301 $ 21,954 $ 55,042 Closures (2) 13,740 12,493 25,357 23,317 Pharma (2) 31,279 35,561 60,483 66,094 Corporate Expenses and Other (9,295 ) (7,385 ) (20,419 ) (22,277 ) Total Income Before Interest and Taxes $ 46,867 $ 66,970 $ 87,375 $ 122,176 Interest Expense, Net (4,446 ) (926 ) (6,618 ) (2,084 ) Net Income/(Loss) Attributable to Noncontrolling Interests 12 3 (59 ) (19 ) Income before Income Taxes $ 42,433 $ 66,047 $ 80,698 $ 120,073 SEGMENT INCOME AS % OF NET SALES Beauty & Home 5.2 % 9.1 % 5.2 % 9.6 % Closures 11.2 % 8.7 % 10.6 % 8.4 % Pharma 30.2 % 30.1 % 29.3 % 28.4 % Notes to Condensed Consolidated Financial Statements: (1) - The Company evaluates performance of its business units and allocates resources based upon income before interest expense net of interest income, stock option and corporate expenses, income taxes and certain unusual items. Source: APTARGROUP INC, 8-K, July 17, 2009
  • 14. (2) Included in the segment income figures reported above, are consolidation/severance expenses and reclassified research & development tax credits as follows: CONSOLIDATION/SEVERANCE EXPENSES Beauty & Home $ (257 ) $- $ (257 ) $- Closures (2,838 ) - (2,838 ) - Pharma - - - - Total Consolidation/Severance Expenses $ (3,095 ) $- $ (3,095 ) $- RESEARCH & DEVELOPMENT TAX CREDITS Beauty & Home $ 475 $ 356 $ 950 $ 697 Closures - - - 20 Pharma 775 1,012 1,550 1,983 Total Research & Development Tax Credits $ 1,250 $ 1,368 $ 2,500 $ 2,700 CONTACT: Stephen J. Hagge AptarGroup, Inc. 815-477-0424 Source: APTARGROUP INC, 8-K, July 17, 2009
  • 15. Exhibit 99.2 Information for the quarter ended March 31, 2009 and the quarters ended March 31, June 30, September 30, and December 31, 2008 and 2007 1Q 2009 Selling, Research & Development and Administrative $ 71,438 Operating Income 40,556 Income before Income Taxes 38,265 Provision for Income Taxes (11,671 ) Segment Income: Beauty & Home 10,811 Closures 11,617 Pharma 29,204 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Total for 2008 Selling, Research & Development and Administrative $ 80,492 $ 77,451 $ 72,528 $ 64,623 $ 295,094 Operating Income 56,031 66,588 60,478 51,074 234,171 Income before Income Taxes 54,026 66,047 58,251 48,402 226,726 Provision for Income Taxes (17,147 ) (20,771 ) (18,557 ) (16,750 ) (73,225 ) Segment Income: Beauty & Home 28,741 26,301 21,409 13,273 89,724 Source: APTARGROUP INC, 8-K, July 17, 2009
  • 16. Closures 10,824 12,493 12,280 8,337 43,934 Pharma 30,533 35,561 35,077 28,420 129,591 1Q 2007 2Q 2007 3Q 2007 4Q 2007 Total for 2007 Selling, Research & Development and Administrative $ 73,154 $ 65,299 $ 65,258 $ 68,366 $ 272,077 Operating Income 47,190 58,038 57,931 49,692 212,851 Income before Income Taxes 43,736 54,473 55,128 48,744 202,081 Provision for Income Taxes (14,173 ) (17,506 ) (15,711 ) (15,217 ) (62,607 ) Segment Income: Beauty & Home 25,500 25,687 24,671 19,777 95,635 Closures 13,741 13,046 11,988 9,442 48,217 Pharma 22,772 26,459 29,444 27,299 105,974 _______________________________________________ Created by 10KWizard www.10KWizard.com Source: APTARGROUP INC, 8-K, July 17, 2009