ACCO feels some 'channel softness' in Australia
ACCO Brands has cited “channel and economic softness in Australia” as a factor in a four per cent dip in its second quarter international sales.
US-based ACCO Brands took full ownership of Pelikan Artline (now ACCO Brands Australia) last year.
In its second quarter results report, the company said its international sales increased 10 per cent to US$80.9 million from $US73.4 million in the prior-year quarter.
Comparable sales declined US$2.6 million, “primarily due to channel and economic softness in Australia”, the company said.
Operating income increased to US$4 million from US$3.1 million in the prior-year quarter and adjusted operating income increased to US$7.9 million from US$6.9 million in the prior-year quarter. The increases were primarily due to improved profitability in Brazil.
Overall, total net sales increased 19 per cent to US$490.0 million from US$410.1 million in the prior-year quarter driven by acquisitions. Excluding the effects of the Esselte and Pelikan Artline acquisitions and foreign exchange, comparable sales declined six per cent.
Net income was US$23.5 million and included US$13.7 million of restructuring, integration and transaction charges, net of a gain related to the settlement of certain inter-company transactions.
This compared to net income of US$61.9 million in the prior-year quarter, which included a US$35.2 million gain from the revaluation to fair value of the company's previously held equity investment in Pelikan Artline.
"Better-than-expected results in the second quarter were due to higher gross margin, as well as improved performance in certain international markets," Boris Elisman, chairman, president and CEO of ACCO Brands, said. "The strong results put us on track for the high-end of our annual adjusted EPS guidance range."