Acco's 3Q improves on acquisition
LINCOLNSHIRE, Ill. (AP) — Acco Brands Corp. reported Wednesday that its third-quarter net income grew nearly five-fold on the revenue boost from a recent acquisition.
The office supplies company makes Swingline staplers, Day-Timer planners and other products, and in May it paid $860 million to acquire MeadWestvaco's consumer and office products business, gaining products like Mead, Five Star, and Trapper Keeper.
Acco reported net income of $55.2 million, or 48 cents per share, for the period that ended Sept. 30. That compares with $11.7 million, or 20 cents per share, earned in the third quarter of last year. After adjusting for special items, it earned 29 cents per share, in line with estimates.
Its total revenue increased 48 percent to $501.2 million from $339.1 million. Analysts polled by Factset expected revenue of $517.5 million.
CEO Robert J. Keller, chairman and CEO, said the business environment continues to be challenging but the recent acquisition has strengthened Acco's business. Additionally, the company has paid off $52 million in debt and plans to cut its debt by $150 million for the year, up from its prior plans of a $125 million in debt reduction.
Acco reiterated its forecast for the full 2012 fiscal year, saying it expects adjusted earnings of 82 to 85 cents per share on revenue of $1.90 billion to $1.95 billion. Analysts were expecting the company to earn 81 cents per share on revenue of $1.92 billion for the year.
The company said it will issue a formal outlook for 2013 when it reports its fourth-quarter and full-year results in February.
Shares of Acco jumped 30 cents, nearly 5 percent, to $6.43.