Global leader in providing innovative merchandising systems to retailers and apparel customers Paxar Corporation reported sales of $201 million for the third quarter of 2005, compared with sales of $194 million for the third quarter of 2004.
Net income for the third quarter of 2005 was $4.1 million, or $0.10 per share, versus net income of $10.2 million, or $0.25 per share, for the third quarter of 2004.
Net income for the third quarter of 2005 includes pre-tax restructuring and other non-recurring charges of $1.9 million, or $0.03 per share after tax, as well as a tax charge of approximately $4.4 million, or $0.11 per share, related to the one-time opportunity during 2005 to repatriate approximately $110 million at a favorable tax rate under the American Jobs Creation Act of 2004.
Excluding the effects of these charges, net income for the third quarter of 2005 totaled $9.9 million, or $0.24 per share.
Sales in the third quarter of 2005 increased 3 percent from the third quarter of 2004 while net income decreased 3 percent and earnings per share decreased 4 percent, excluding restructuring and other non-recurring charges.
Organic sales growth was 1 percent while growth attributable to acquisitions was 2 percent. There was no effect from foreign exchange.
The Company anticipates that it will incur one-time cash costs of $25 to $30 million, beginning in the fourth quarter of 2005 and expected to be largely completed by the end of 2006.
Additionally, management estimates there will be other non-cash charges associated with the implementation ranging from $10 to $14 million over the same time frame. These expenses relate to severance, facility consolidation costs and related asset write-offs primarily in the Company's domestic operations.
marketing@alchempro.com
