Fourth quarter 2016 sales were $1.550.8 million, up 7% from 2015. For the full year, the company reported $6,086.5 million in revenue, up 2%, with free cash flow of $387.1 million.
“I am pleased to report another year of progress toward our long-term goals,” said Mitch Butier, president and CEO. “We drove strong organic sales growth and margin expansion through our strategy to accelerate growth in high value categories and disciplined execution in our base businesses.
“Label and Graphic Materials had another outstanding year and the transformation of Retail Branding and Information Solutions is on track. Results in our newly created Industrial and Healthcare Materials segment were as anticipated, and it is well positioned for profitable growth. I would like to thank our employees for their dedication and focus on our continued success,” Butier added.
“In 2017, we expect to again deliver solid sales and earnings growth,” said Butier. “We remain confident that the consistent execution of our strategies will enable us to achieve our long-term goal of superior value creation through a balance of profitable growth and capital discipline.”
Fourth Quarter 2016 Results
Label and Graphic Materials sales increased approximately 10% to $1,063.8 million; on an organic basis, sales grew approximately 7%. Within the segment, sales in Label and Packaging Materials increased mid-single digits and the combined Graphics and Reflective businesses increased low-double digits on an organic basis. Operating margin improved 70 basis points to 11.3%, driven primarily by the impact of higher volume.
Retail Branding and Information Solutions sales increased approximately 3% to $375.9 million; on an organic basis, sales grew approximately 5%. Operating margin improved 610 basis points to 9.3%, primarily due to lower restructuring charges.
Industrial and Healthcare Materials sales decreased approximately 8% to $111.1 million; on an organic basis, sales declined approximately 10%, as expected. Strong growth in industrial was more than offset by an expected decline in healthcare categories. Operating margin declined 360 basis points to 8.8% as the impact of lower volume was only partially offset by the benefit of productivity initiatives.