BANGALORE Feb 11 Shares of AptarGroup Inc
(ATR.N) rose 6 percent Thursday, a day after the supplier of
cosmetics dispensers forecast strong quarterly earnings and
revealed plans to realign its business.
Analysts said the realignment would help streamline the
company's business and help it focus on the end-market versus a
specific product capability.
"For example, personal care which previously used to sell
in two categories will now be sold under one category. It just
makes more intuitive sense," analyst Ghansham Panjabi of Robert
W. Baird & Co said by phone.
The company, which plans to have three business segments,
expects to fully operate under the new structure from 2011.
Analyst Panjabi said the company did a good job of cutting
costs during the economic downturn and protecting their
franchises and customers.
Crystal Lake, Illinois-based AptarGroup, which draws about
half of its total revenue from the beauty and home segment,
however, said it would remain cautiously optimistic for 2010.
"In Europe, for example, there is the tendency of higher
unemployment which could affect the demand," AptarGroup Chief
Executive Peter Pfeiffer said on a conference call, adding that
in the United States, the crisis is still not over yet.
Fragrance and cosmetic sales have taken a hit due to the
weakness in discretionary spending and lower footfalls at
The company reported forecast-beating fourth-quarter
earnings Wednesday. [ID:nSGE6190MQ]
AptarGroup shares were up 5 percent at $36.87 in afternoon
trade Thursday on the New York Stock Exchange.
(Reporting by Anirban Sen; Editing by Gopakumar Warrier)