UPDATE 1-AptarGroup profit misses Street; to close 2 Europe facilities
* Third-quarter earnings/share $0.62 vs estimates $0.64
* 170 jobs to be affected due to closure of facilities
* Expects restructuring charges of $18 million
Nov 1 (Reuters) - Packaging products maker AptarGroup Inc said it would restructure its European operations after the company posted a quarterly profit below analysts' estimates due to soft demand in the region.
AptarGroup plans to reduce production costs by shutting down two of its 12 facilities in Europe, which would affect 170 jobs, it said.
Morningstar Inc analyst Todd Wenning said the company should focus its restructuring on its weak beauty and home business.
"Lack of demand for those products in Europe are really dragging on the company right now," Wenning said.
Revenue at the beauty and home business fell 8 percent in the third quarter. The business accounted for over 60 percent of the company's total sales of $589.6 million.
The company, which also has operations in North America, Latin America and Asia, expects to incur $18 million in costs as a result of the restructuring.
AptarGroup forecast earnings of 53 cents to 58 cents per share for the current quarter. Analysts were expecting a profit of 62 cents per share, according to Thomson Reuters I/B/E/S.
The company's third-quarter profit fell to $42.1 million, or 62 cents per share, from $49.3 million, or 72 cents per share, a year earlier.
Analysts on average had expected a profit of 64 cents per share on revenue of $583.7 million.
Shares of the Crystal Lake, Illinois-based company, which has a market value of about $3.40 billion, closed up 4 percent at $53.13 on Thursday on the New York Stock Exchange.
- Gaza fighting abates as diplomatic tension flares |
- Hague court orders Russia to pay $50 billion in Yukos case
- Pushing locals aside, Russians take top rebel posts in east Ukraine
- Europe subdued, Russia shares tumble on new sanctions
- Fighting complicates Ukraine crash probe, U.S., EU prepare Russia sanctions |