(RTTNews) - Tuesday, Bemis Co. Inc. (BMS: News ), a supplier of flexible packaging and pressure sensitive materials, reported a decline in earnings for the third quarter as sales fell 8.7%. The company provided fourth quarter forecast and lifted its earnings outlook for fiscal 2009 above Street view.

For the quarter, net income attributable to Bemis Company declined to $35.84 million from $44.26 million in the corresponding period last year. Earnings decreased to $0.33 per share from $0.43 per share in the same period last year.

Net income declined to $38.44 million from $46.21 million in the same period last year. Excluding the effect of acquisition related charges and financing, and a gain on sale of an asset, earnings per share were $0.48 compared to $0.43 per share a year earlier.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

The current quarter includes $16 million or $0.09 per share of expenses associated with the planned acquisition of Alcan Packaging Food Americas announced on July 5, 2009. Furthermore, results for the current quarter were reduced by a total of $0.08 per share related to the impact of acquisition financing raised through the issuance of public bonds and common stock during the quarter. These added costs were partially offset by a $3.6 million gain on the sale of property which added $0.02 per share to results for the quarter.

Bemis said results for the third quarter of 2008 have been recast to reflect the impact of FSAB guidance, which requires unvested share based payment awards that contain rights to receive non-forfeitable dividends to be included in the calculation of earnings per share, effective January 1, 2009. The impact of this modification is a $0.01 per share decrease in earnings for the third quarter of 2008
Net sales were $898.93 million, down 8.7% from $984.26 million a year earlier. Seven Street analysts expected the company to report sales of $908.99 million for the quarter.

Currency fluctuations reduced net sales by 3.6% compared to the third quarter of 2008. South American rigid packaging, acquired in June 2009 contributed 1.9% to sales during the quarter. The remaining 7% decline in net sales reflects lower unit volume and selling prices offset by improved sales mix compared to the prior year quarter.

Flexible packaging business segment net sales were $764.1 million, down 7.5% from $826.4 million in the year-ago quarter. Operating profit was $106 million, up from $82.4 million a year earlier.

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