Sales for the second quarter of 2018 increased 0.9% to $1,264.4 million, compared to $1,252.9 million for the second quarter of 2017, with 1.3% organic growth and 1.0% acquisition-related growth partially offset by a negative 1.4% impact from foreign currency translation.
Operating income for the second quarter of 2018 was $199.6 million, an increase of 6.0% compared to $188.3 million for the comparable quarter of 2017. Net earnings were $121.1 million for the 2018 second quarter compared to $109.9 million for the 2017 second quarter.
For the six-month period ended June 30, 2018, sales, operating income and net earnings improved 7.7%, 15.3% and 21.2% to $2.5 billion, $400.2 million and $239.8 million, respectively, compared to the same six-month period in 2017. The 2018 six-month period included results from eight acquisitions completed since Jan. 1, 2017, delivering acquisition related sales growth for the period of 5.7%. Organic sales growth was 2.3%, partially offset by 0.3% negative impact from foreign currency translation.
“Home & Personal Care, and Food & Beverage markets both delivered strong sales growth, Healthcare & Specialty a modest sales gain, partly offset by a small decline at CCL Design compared to a strong prior year period,” said Geoffrey T. Martin, president and CEO.
“Overall CCL segment profitability improved in line with sales. Checkpoint’s 4.7% organic sales growth included completion of technology rollout programs for two important retailers with profitability gains boosted by improved performance at our apparel labeling operations as restructuring initiatives took hold,” Martin added. “Avery second quarter operating margins improved to 23% on the mix impact of share loss in ring binders and similar adjacent product lines. Innovia results declined on protracted inflationary resin costs, operating challenges at our large U.K. plant and lower sales to the flexible packaging market.
“We finished the second quarter of 2018, with a solid balance sheet,” Martin concluded. “The company’s net leverage ratio was 1.84 times EBITDA with $822 million cash-on-hand, including the proceeds to close the Treofan acquisition on July 2, 2018. $475 million undrawn capacity on our syndicated revolving credit facility leaves the company well placed to continue its growth initiatives.”