ACCO Brands Corporation Reports First Quarter 2011 Results

ACCO Brands Corporation ABD today reported its first quarter results for the period ended March 31, 2011. Net sales were essentially flat at $310.3 million, compared to $310.8 million in the prior-year quarter. Volume decreased 4%. First quarter loss from continuing operations was $8.1 million, or $0.15 per diluted share, compared to a loss of $4.5 million, or $0.09 per diluted share, in the prior-year quarter. Using a normalized effective tax rate of 30%, the adjusted loss from continuing operations was $2.3 million, or $(0.04) per share, including $3.9 million of severance and related costs associated with the rationalization of the company's European operations, compared to $1.6 million, or $0.03 per share in the prior-year period. Reported first quarter operating income decreased to $14.7 million, from $21.6 million in the prior-year quarter. In addition to the rationalization costs in Europe, the decline in operating profit was principally due to lower volume. EBITDA decreased to $25.5 million, from EBITDA of $33.1 million in the prior year. The company ended the quarter, the seasonal low point of its cash flow cycle, with $19.9 million of cash and no borrowings on its revolving credit facility.