Weak demand and lower prices in Australia impacted significantly on ACCO Brands' international results in the fourth quarter, ended December 31.
The Illinois-based global office products supplier said net international sales increased to US$187.3 million from US$136.5 million in the prior year quarter due to the merger with Mead Consumer & Office Products (Mead C&OP). Operating income increased to US$30.1 million from US$20.5 million.
The international results were partially offset by planned exits of low-margin products in the European business as well as the “weak demand environment” in Europe and Australia.
Adjusted pro forma operating income was US$30.2 million, compared to US$38.8 million in the prior year quarter, and excludes charges of US$0.1 million in the current year.
Adjusted pro forma operating margin decreased to 16.1 per cent from 18.4 per cent.
The company said the decline in profit and margin was driven by lower sales volumes and pricing in Australia, along with the weak demand environment in Europe and US$1.8 million in negative foreign exchange.
ACCO Brands' total global net sales increased 51 per cent to US$529.7 million, compared to US$350.7 million in the prior-year quarter, due to the merger with the Mead C&OP business.
On a pro forma basis, including the results of Mead C&OP for the full quarter in both years, sales decreased seven per cent.
Full year results
Net sales increased 33 per cent to US$1.76 billion in the full year, compared to US$1.32 billion in the prior 12-month period, due to the merger with Mead C&OP.
On a pro forma basis, including the results of Mead C&OP for the full 12 months, sales decreased eight per cent, more than half of which was due to declines in Europe and unfavourable foreign currency exchange rates.
