ACCO Brands Corporation (NYSE:ACCO) 4Q Results Enthuses The Market
The $695 million market capped office and stationary supplies firm, ACCO Brands Corporation (NYSE:ACCO) posted close to 5 percent increase in its market value yesterday, after the release of its 4Q 2013 and full year operations results before market opening yesterday.
ACCO Brands Corporation (NYSE:ACCO) president and chief executive officer Boris Elisman, providing his commentary on the results, has been quoted to have said that, “As we reported in January, our quarterly and full-year results were in line with our overall expectations. Despite a challenging environment, we generated over $150 million in free cash flow, which was used to reduce our debt. Looking into 2014, we again expect strong free cash flow, underpinned by cost reduction actions and productivity improvements.”
Some of the key highlights of the results announcement was the net dip in sales by 5% for the quarter to level out at $503.7 million. The dip in sales is being linked to the lower market volumes coupled with the product mix that remained unsold. But in spite of the slowdown in sales, the firm managed to post a significant increase in its quarter income. It posted net income of $50.3 million in 4Q13, as compared to $15 million losses that the firm had taken a hit on in 4Q12. Adjusted income went up 6% to $44.9 million as against the $42.3 million it had recorded in 4Q12. The better than expected income was generated by bringing in cost savings by leveraging on synergies and improvements in the production mechanism.
For the full year operations, the net sales were down by 0.4 percent, while income stabilized at $77.3 million before taxes. Over the trailing 12 months, the firm had managed to accumulate net income of $11.9 million. In the past year, the stock has posted net losses of 27 percent.