FiercePharma  Sep 28  Comment 
Industry watchers largely expect Bristol-Myers Squibb's Opdivo to come out on top in the checkpoint inhibitor battle. But don't count out Merck's Keytruda, even if it winds up with a narrower label, analysts say.
GenEng News  Sep 25  Comment 
Bristol-Myers Squibb (BMS) and Moffitt Cancer Center joined forces today as part of BMS’s Immuno-Oncology Rare Population Malignancy (I-O RPM) program in the U.S. The I-O RPM program is a multi-institutional initiative with academic-based cancer...
FiercePharma  Sep 16  Comment 
Last July, Bristol-Myers Squibb put an early end to a late-stage study that showed its immunotherapy drug, Opdivo, looked good in patients with advanced kidney cancer. And now, it's one step closer to landing a nod in that population.
The Hindu Business Line  Sep 1  Comment 
BJP-backed unions BMS and NFITU to keep off today’s stir; call it off, says Labour Minister
FiercePharma  Sep 1  Comment 
A new drug for blood cancer from Bristol-Myers Squibb and AbbVie is on the fast track to FDA approval, winning a priority review to treat multiple myeloma.
The Hindu Business Line  Aug 31  Comment 
Centre’s proposals have nothing concrete to offer, say leaders
GenEng News  Aug 31  Comment 
Bristol-Myers Squibb (BMS) has been granted an exclusive right to acquire Promedior and gain worldwide rights to its Phase II lead compound PRM-151 for idiopathic pulmonary fibrosis (IPF) and myelofibrosis (MF). The deal could generate up to $1.25...
The Hindu Business Line  Aug 29  Comment 
The BJP-backed Bharatiya Mazdoor Sangh (BMS) today decided to opt out of the central trade unions’ proposed September 2 strike and said it is not the best way out in view of the government’s assur...
The Hindu Business Line  Aug 28  Comment 
BMS to take a call on Saturday
The Hindu Business Line  Aug 14  Comment 
The Bharatiya Mazdoor Sangh (BMS), backed by the RSS, has called upon all its affiliated unions and federations to serve strike notices between August 12 and 17 to make the all-India gener...


Bemis Company (NYSE: BMS) manufactures flexible packaging products and recorded 2007 total revenues of $3 billion.[1] The company sells the majority of its goods in the United States which accounted for nearly 65% of Bemis' revenues in 2007.[2]

In 2007, the price of plastic resin on the London Metal Exchange increased from $1155 per ton to $1400 per ton.[3] As a result of rising raw materials costs, Bemis' gross margin decreased from 19.1% in 2006 to 18.5% in 2007.[4] This trend continued into Q2 and Q3 2008 when gross margin fell to 17.6%[5] and 16.9%[6] respectively. Likewise, slowed consumer spending growth[7] resulted in a 4.5% decrease in pressure sensitive materials revenue excluding the effect of foreign exchange rates.[5] On the other hand, the dollar depreciated against foreign currencies in both Europe and South America during 2007.[8] Continued currency fluctuations resulted in a 4.4% boost to Bemis' total revenues during the first 9 months of 2008.[9] Bemis competes in the flexible packaging market with companies like Sealed Air (SEE), Sonoco Products Company (SON) and Pactiv (PTV) as well as in the pressure sensitive films market with companies like Intertape Polymer Group (ITP).

Business Overview

The company's products include paper and plastic films and bags as well as related products used to package food, health care and other products.[1] Bemis also manufactures pressure sensitive films used for label printing, graphics printing and technical products assembly.[1] In 2006, the company closed five of its Flexible Packaging plants and one of its Pressure Sensitive Materials plants in an effort cut costs.[4] The 2006 plant closures resulted in $31.2 million worth of restructuring costs for Bemis.[4]

Business Financials

Revenue and Income[2][10] ($ MM) 2007 2006 2005
Flexible Packaging 3,003 3,001 2,856
Pressure Sensitive Materials 653 643 619
Eliminations (6) (5) (1)
Total Revenues 3,649 3,639 3,474
Operating Income 286 286 276
Net Income 182 176 163
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BMS Revenues and Net Profit Margin[2]

In 2007, total revenues increased by 0.3% due to 3.4% revenue growth from favorable exchange rates which was offset by a 3.1% revenue decline due to decreased sales volume.[4] In 2006, total revenues increased by 4.8%.[4] 1.8% of this was due to favorable exchange rates.[4] The other 3% was due to a shift in customer purchases from less expensive to more expensive products.[4]

Business Segments

BMS 2007 Revenues by Geography
BMS 2007 Revenues by Geography[2]
BMS 2007 Revenues by Segment before eliminations
BMS 2007 Revenues by Segment before eliminations[2]
  • Flexible Packaging (82% of 2007 Revenues, 90% of Segment Operating Profit) manufactures flexible paper and plastic packaging products such as films, bags and wraps used to package food, medical and personal care products as well as flexible plastics used to vacuum pack non-food products.[1] Flexible Packaging sells its products to customers who need to package products food products, pet products, personal care products and pharmaceutical goods.[1] The segment's revenues did not grow at all in 2007 due to decreased volume sales of some of the segment's product lines such as packaging for meat and cheese, which were offset by the positive effect of foreign exchange rates.[11] However, segment operating profit for Flexible Packaging increased from 11.2% of sales in 2006 to 11.5% of sales in 2007 due to restructuring activities in which Bemis closed five of its Flexible Packaging plants.[11] The Flexible Packaging segment competes with similar products from companies like Sealed Air (SEE), Sonoco Products Company (SON) and Pactiv (PTV).
  • Pressure Sensitive Materials (18% of 2007 Revenues, 10% of Segment Operating Profit) manufactures pressure sensitive films and papers used for label printing, graphics printing and technical products assembly.[1] The segment's label printing products consist of rolls of paper and metalized film used for high speed printing of barcode and other labels as well as signs.[1] Pressure Sensitive Materials also manufactures clear films used to protect digital photographs from UV light.[1] The segment's technical products include micro-thin tapes and adhesives used to assemble delicate electronic parts.[1] The segment's revenues grew 1.3% in 2007 due mainly to the positive impact of foreign currency translations, which were partially offset by decreased sales volume.[12] Likewise, segment operating profit for Pressure Sensitive Materials decreased from 7.8% of sales to 6.2% of sales due to decreased sales volume of the segments most profitable products.[12] Bemis' Pressure Sensitive Materials compete with similar products manufactured by companies like Intertape Polymer Group (ITP).

Note: Operating profit is defined as profit before general corporate expense, interest expense, income taxes, and minority interest and is not the same as Operating Income.[13]

Key Trends and Forces

Increases in the price of plastic resin compress Bemis' gross margins

Increases in the price of plastic resins make cost management have created cost management problems for Bemis.[4] Both polypropylene and polyethylene are used to make packaging products like those produced by Bemis.[14] Between December 31, 2006 and December 31, 2007 the price of polypropylene plastic resin on the London Metal Exchange rose from $1155 per ton to $1400 per ton.[3] Likewise, the price of polyethelene resin increased 33% from about $0.60 to $0.80 per pound.[15] As the price of raw materials continued to increase in 2008, Bemis' gross margins continued to shrink. In Q2 2008, the company's gross margins were 17.6% compared to 19.2% in Q2 2007.[5] The trend continued in Q3 2008 when the company's gross margins fell to 16.9% down from 17.8% in Q3 2007.[6]

Exchange rates resulting in a weak U.S. dollar boost Bemis' international revenues

Because Bemis reports their revenues in U.S. dollars but does almost 36% of their business outside of North America, they are exposed to fluctuations in exchange rates. When foreign currencies appreciate, the dollar value of Bemis' international revenues increases. During the first three quarters of 2008, fluctuations in the value of the dollar increased Bemis' revenues by 4.4%.[9] This accounted for the majority of the company's 6.4% increase in total revenues during the same period.[9]

Decreased consumer spending decreased Bemis' sales volume in 2008

When consumer spending decreases, customers buy less of the goods packaged with Bemis' products. This decreases the demand for the company's packaging products and decreases Bemis' sales volume.[4] A USA TODAY survey reported that in Q1 and Q2 2008, consumer spending fell to 0.5% and 0.2%, respectively.[7] As a result of the slowing economy, Bemis' sales of flexible packaging products for the snack and confectionary markets decreased 4% year over year in Q2 2008.[5] At the same time, the company's sales of pressure sensitive materials decreased 4.5% excluding the impact of foreign exchange rates.[5] This trend continued into Q3 2008 when both sales of flexible packaging products for the snack and confectionary and pressure sensitive materials fell compared to Q3 2007.[6]

Key Competitors

  • Sealed Air (SEE) manufactures packaging materials for food, medical and other industrial and consumer applications. Sealed Air's food packaging products compete with those produced by Bemis' Flexible Packaging segment.[16]
  • Sonoco Products Company (SON) manufactures paper and plastic rigid packaging, flexible packaging and cable reels as well as tubes and cores used for film, plastic and paper rolls. The company also provides packaging related services such as packaging design. Sonoco's flexible packaging products compete with those manufactured by Bemis' Flexible Packaging segment.[17]
  • Pactiv (PTV) manufactures consumer products such as plastic garbage bags as well as packaging products for the food and foodservice industries. Pactiv's food packaging products compete with those produced by Bemis' Flexible Packaging segment.[18]
  • Intertape Polymer Group (ITP) manufactures pressure sensitive tapes and films and well as specialty coated fabrics and industrial containers. The company's pressure sensitive tapes and films compete with those manufactured by Bemis' Pressure Sensitive Materials segment.[19]
Bemis and Key Competitors ($ MM) Total Revenues Net Income Net Profit Margin
Bemis 3,649 182 5.0%
Sealed Air (SEE) 4,651 353 7.6%
Sonoco Products Company (SON) 4,040 214 5.3%
Pactiv (PTV) 3,253 245 7.5%
Intertape Polymer Group (ITP) 767 (8) -1.1%


  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 BMS 2007 10-K: Business, pgs 3-4
  2. 2.0 2.1 2.2 2.3 2.4 BMS 2007 10-K: Segments of Business, pg 38
  3. 3.0 3.1 Plastics News: Polypropylene Global Contracts Historical Pricing US$/tonne
  4. 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 BMS 2007 10-K: Management’s Discussion and Analysis of Financial Condition and Results of Operations, pg 10
  5. 5.0 5.1 5.2 5.3 5.4 Seeking Alpha: BMS 2008 Q2 Earnings Call Transcript
  6. 6.0 6.1 6.2 Seeking Alpha: BMS 2008 Q3 Earnings Call Transcript
  7. 7.0 7.1 USA TODAY survey: We're in recession, economists say
  8. Search: BRL to USD, EUR to USD
  9. 9.0 9.1 9.2 BMS Q3 2008 10-Q: Results of Operations – Nine Months Ended September 30, 2008 pg 3
  10. BMS 2007 10-K: Selected Financial Data, pg 9
  11. 11.0 11.1 BMS 2007 10-K: Management’s Discussion and Analysis of Financial Condition and Results of Operations, pg 11
  12. 12.0 12.1 BMS 2007 10-K: Management’s Discussion and Analysis of Financial Condition and Results of Operations, pg 12
  13. BMS 2007 10-K: Segments of Business, pg 39
  14. Packaging Today: Plastic Packaging Products
  15. PTV 2007 10-K: Year 2007 compared with 2006, pg 12
  16. Google Finance: SEE
  17. Google Finance: SON
  18. Google Finance: PTV
  19. Google Finance: ITP
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