Shares of ACCO Brands Corporation (NYSE:ACCO) ended Friday session in green amid volatile trading. The shares closed up +0.22 points or 2.17% at $10.34 with 420,881.00 shares getting traded. Post opening the session at $10.14, the shares hit an intraday low of $10.11 and an intraday high of $10.35 and the price vacillated in this range throughout the day. The company has a market cap of $1.13 billion and the numbers of outstanding shares have been calculated to be 107.19 million shares.
ACCO Brands Corporation (ACCO) on Aug. 2, 2016 reported its second quarter results for the period ended June 30, 2016.
“Our strong second quarter results were driven by sales growth and continued effective operational execution,” said Boris Elisman, Chairman, President and Chief Executive Officer, ACCO Brands. “With the completion of the Pelikan Artline acquisition and strong back-to-school sell-in, I’m optimistic that profitable sales growth will continue despite the challenging macro and industry environments. After a solid first half, we are raising our 2016 earnings and free cash flow guidance.”
Second Quarter Results
Net sales increased 4% to $410.1 million from $394.7 million in the prior-year quarter. The acquisition of the remaining 50% interest of the company’s Pelikan Artline joint venture, which was completed May 2, 2016, added 4% to sales. Foreign exchange reduced sales by 2%. The comparable sales growth of 1% was driven by strong back-to-school sell-in in North America. Operating income decreased to $45.4 million from $49.2 million in the prior-year quarter due primarily to restructuring and one-time charges of $5.7 million in the current quarter versus $0.2 million in the prior-year quarter. Adjusted operating income increased to $51.1 million from $49.4 million in the prior year primarily due to sales growth and gross margin expansion. Net income was $61.9 million, or $0.57 per share, and included a $35.2 million gain from the revaluation to fair value of the company’s previously held equity investment in Pelikan Artline. This compared to a net income of $27.7 million, or $0.25 per share, in the prior-year quarter. Adjusted net income increased 1% to $27.1 million, or $0.25 per share, from $26.8 million, or $0.24 per share, in the prior-year quarter. The improvement was primarily driven by sales growth and improved gross margin.
Shares of Packaging Corp Of America (NYSE:PKG) ended Friday session in green amid volatile trading. The shares closed up +0.73 points or 0.92% at $79.67 with 749,709.00 shares getting traded. Post opening the session at $79.54, the shares hit an intraday low of $78.93 and an intraday high of $79.80 and the price vacillated in this range throughout the day. The company has a market cap of $7.58 billion and the numbers of outstanding shares have been calculated to be 94.23 million shares.
Packaging Corp Of America (PKG) on September 1, 2016 announced that it intends to increase the quarterly cash dividend on its common stock to an annual payout of $2.52 per share from $2.20 per share, a 15% increase. The first quarterly dividend of $0.63 per share will be paid on October 14, 2016 to shareholders of record as of September 15, 2016. Future declaration of quarterly dividends and the establishment of future record and payment dates are subject to the final determination of PCA’s Board of Directors.
Commenting on announcement, Mark W. Kowlzan, Chief Executive Officer of PCA, said, “This announcement marks the sixth time in the last six years that PCA has increased the dividend on its common stock. This reflects PCA’s on-going commitment to generating value and returning cash to shareholders.”