Tickets, tags and labels, printers and printing systems seller Paxar Corporation reported sales of $215 million, net income of $14.4 million and earnings per share of $0.35 for the quarter ended June 30, 2005.
Excluding restructuring and other charges, second quarter 2005 net income was $16.1 million and earnings per share were $0.39. (See attached 2005 Reconciliation of GAAP to Non-GAAP Measures.) In the second quarter of 2004, sales were $214 million, net income was $15.8 million and earnings per share were $0.39.
Sales in the second quarter of 2005 were essentially unchanged from the second quarter of 2004. Organic sales reflected a 2 percent decline primarily due to continuing global migration trends and soft market conditions in Europe, offset by changes in foreign exchange and sales related to acquisitions.
Excluding restructuring and other charges, 2005 second quarter net income increased 2 percent while earnings per share remained unchanged.
Rob van der Merwe, President and Chief Executive Officer, said, "Second quarter performance met their expectations. They are pleased with the sequential quarter development in sales and earnings, as well as the continuing strength of their balance sheet and strong cash generation."
Mr. van der Merthey continued, "Consistent with their previous announcement relative to the softness in the European markets, they have undertaken several initiatives that will lower costs and improve margins in that region. As a result, they will consolidate selected European operations, including closing a facility in the UK, and reduce headcount."
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