ACCO Brands Q2 Adj. Profit Meets View - Quick Facts

(RTTNews) - Branded office products supplier ACCO Brands Corp. (ACCO) reported a profit for the second quarter that plunged from last year, while sales edged up slightly. However, adjusted earnings per share matched analysts' expectations, while revenues missed their estimates.

The company's net income for the second quarter was $9.5 million or $0.08 per share, down from $94.2 million or $0.98 per share in the year-ago period.

The latest quarter's results include pre-tax charges of $17.4 million for debt refinancing, restructuring and IT integration costs. The prior-year quarter's results include a significant tax benefit, partially offset by pre-tax charges of $116.5 million for debt refinancing and merger-related costs.

On a pro forma basis, adjusted income from continuing operations was $21.8 million or $0.19 per share, compared to $21.0 million or $0.18 per share in the same period last year. On average, seven analysts polled by Thomson Reuters expected the company to report earnings per share of $0.19 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter edged up to $440.2 million from $438.7 million in the prior-year period, due to the merger with MeadWestvaco's Consumer & Office Products business. Analysts had a consensus revenue estimate for the quarter of $459.49 million.

ACCO Brands North America net sales for the quarter rose 3 percent to $286.9 million, while Acco Brands International net sales increased 2 percent to $116.1 million. Computer Products net sales declined 17 percent to $37.2 million.

For fiscal 2013, ACCO Brands now expects pro forma adjusted earnings per share of $0.90 to $0.95, or pro forma growth of 10 to 16 percent, excluding currency. The company now forecasts sales for the year to decline approximately 3 to 6 percent, on a pro forma basis, excluding currency, driven by softer volume.

Analysts expect the company to report earnings of $0.93 per share for the year on revenues of $1.87 billion.