ACCO 4Q net sales down two percent

PRNewswire

LINCOLNSHIRE — ACCO Brands Corp. said net sales for the fourth quarter of 2011 decreased 2 percent to $350.7 million, compared to $359.5 million in the prior-year quarter.

Volume declined nearly 4 percent but was partially offset by favorable pricing, which added more than 1 percent, the company said in a release. Fourth quarter income from continuing operations increased to $9.4 million, or 16 cents per diluted share, compared to $4.3 million, or 7 cents per diluted share, in the same quarter last year.  Comparable earnings increased 26 percent to 29 cents per diluted share compared to 23 cents per share.

The quarter’s earnings do not include $4.1 million in costs associated with the pending acquisition of MeadWestvaco’s Consumer and Office Products business, the company said.

“While consumer and business spending continued to be constrained in the fourth quarter in both the U.S. and Europe, we managed the business well and are pleased with our bottom-line performance for the quarter and the year,” said Robert J. Keller, chairman and chief executive officer. “We’ve set the stage for a transformation of ACCO Brands.  Our pending merger with MeadWestvaco’s Consumer and Office Products business marks an important first step in that transformation.”

Looking ahead, the company said it expects to incur up to $7 million of restructuring charges in the first quarter of 2012 for severance and related expenses, as it streamlines its sales and operations functions in the U.S. and Europe.  Savings associated with these actions are expected to be between $5 million and $7 million in 2012, growing to $8 million on a full-year annualized basis thereafter.