Acquisitions drive record quarter at CCL

The second quarter sales increase included 6.2 percent organic growth and 6.7 percent positive currency translation, with the balance primarily from the Avery, DES, Dekopak and Sancoa acquisitions.  Read more about recent acquisition activity and other corporate developments by CCL here.

For the six months ended June 30, 2014, sales increased 66.4 percent, excluding foreign currency translation, compared to the 2013 six-month period.

CCL Label sales increased 37 percent driven by acquisitions, more than seven percent organic growth and positive currency translation.

Geoffrey T. Martin, president and chief executive officer of CCL Industries, said: ‘Second quarter earnings were another record, with our legacy businesses contributing meaningful improvement and our new Avery consumer arm powering ahead-of-planned results.

‘While the Canadian dollar strengthened sequentially, it remained weaker against many currencies compared to the prior year, notably excluding the Brazilian real. This translated to seven cents earnings per share positive impact adding to our 15th consecutive quarter of year-over-year improvement in adjusted earnings per share.

‘CCL Label sales increased 37 percent driven by acquisitions, over seven percent organic growth and positive currency translation. North America recorded high-single digit organic growth with Healthcare improving notably as certain customers recovered from FDA quarantines. Specialty was mixed with strong World Cup promotional activity, offset by a soft Agricultural Chemicals season attributed by the market to the prolonged tough winter. Home & Personal Care sales, excluding the Sancoa acquisition, improved on new business momentum but in the face of continuing sluggish market demand. Results in Food & Beverage improved meaningfully with notable gains at our West Coast wine plants. CCL Design sales benefited from a robust North American automotive market but operating margins remain below the segment average.

‘Excluding acquisitions, European sales were up low-single digits in local currencies as demand improved in our consumer and automotive businesses with the food and beverage sector an area of strength.’