AptarGroup Reports Third Quarter Results; Expands Presence in South America; Declares Quarterly Dividend

Third Quarter 2009 Summary

-- Consolidated sales decreased 11% from the prior year level and decreased 7% excluding currency effects and acquisitions

-- Operating income reached $52.9 million despite challenging conditions, a decline of 12% from the prior year, of which 4% was due to a charge of $2.6 million for the previously announced facilities consolidation and severance program

-- Certain regions and markets stabilized in the third quarter leading to improved sales and profits over the second quarter

-- South American acquisition was completed

-- Strong balance sheet was maintained

THIRD QUARTER RESULTS

For the quarter ended September 30, 2009, sales decreased 11% to $473.7 million from $532.2 million a year ago. Product and custom tooling sales declined 7%, changes in exchange rates accounted for 5% of the decline and acquisitions added 1% to sales.

Third Quarter Segment Sales Analysis
(Change From Prior Year)
                                 Beauty &  Closures  Pharma  Total
                                 Home                        AptarGroup
Product and Custom Tooling Sales -7%       -9%       -3%     -7%
Currency Effects                 -5%       -5%       -4%     -5%
Acquisitions                     0%        2%        0%      1%
Reported Change in Sales         -12%      -12%      -7%     -11%

Commenting on the quarter, Peter Pfeiffer, President and CEO, said, "Despite the continued difficult economic conditions, we have generally preserved our operating margins through cost savings efforts and the benefits of our diversified business model. Many of our customers remained cautious in the quarter, but we believe inventory reductions were reaching an end in certain markets and our third quarter results improved sequentially over our second quarter results. Although it was still a challenging quarter, we maintained our strong balance sheet."

Pfeiffer added, "Our Beauty & Home segment sales declined 7%, excluding currency effects, primarily due to continued weak demand from the fragrance/cosmetic market in North America and Europe. This weakness was partially offset by continued strong demand from South America and Asia, and we benefited from improved demand in the personal care market. Beauty & Home segment income declined 21% or $4.6 million in the quarter primarily due to underutilized overhead and the negative impact of a $1.2 million charge relating to severance expenses. Excluding the charge for severance expenses, Beauty & Home segment income declined 16% or $3.3 million.

Our Closures segment sales declined 9%, excluding currency effects and acquisitions, due to the pass-through of resin cost decreases and weak demand in Europe. We continued to see strong demand for our food and beverage closures in North America and this offset some of the weakness in Europe. Closures segment income decreased 15% or $1.8 million in the quarter primarily due to the negative impact of a $1.4 million charge relating to consolidation/severance expenses. Excluding the charge for consolidation/severance expenses, Closures segment income declined 4% or approximately $0.5 million."

Pfeiffer continued, "Our Pharma segment reported stable performance in the quarter. Sales declined by 3%, excluding currency effects, primarily due to softer demand for our metered dose valves, but overall the segment reported another strong operating result. Pharma segment income declined 11% primarily due to lower sales and the impact of changes in currency exchange rates."

On a consolidated basis, operating income declined 12% to $52.9 million (including approximately $2.6 million of consolidation/severance expenses), down from $60.5 million a year ago.

Reported diluted earnings per share, which include the consolidation/severance expenses, decreased 16% to $.48 per share. Diluted earnings per share, excluding consolidation/severance expenses of approximately $.03 per share, decreased 11% to $.51 compared to $.57 per share in the prior year.

YEAR-TO-DATE RESULTS

Year-to-date sales decreased 17% to approximately $1.3 billion from approximately $1.6 billion a year ago. Product and custom tooling sales declined 10%, changes in exchange rates accounted for 8% of the decrease and acquisitions contributed 1% to sales.

Operating income decreased 23% to $141.5 million (including approximately $5.7 million of consolidation/severance expenses), down from $183.1 million a year ago. Reported diluted earnings per share, which include the consolidation/severance expenses, decreased 26% to $1.27 per share. Diluted earnings per share, excluding consolidation/severance expenses of approximately $.05 per share, decreased 23% to $1.32 compared to $1.72 per share in the prior year.

SOUTH AMERICAN ACQUISITION

In the quarter, AptarGroup acquired Covit do Brasil Componentes de Aluminio para Perfumaria Ltda. (Covit do Brasil) for approximately $7.6 million. Covit do Brasil is a growing company that has been operating in Brazil since 2005 developing and supplying anodized aluminum parts primarily for the fragrance/cosmetic market. Covit do Brasil will generally be supplying parts to other companies within AptarGroup.

Commenting on the acquisition, Pfeiffer said, "AptarGroup welcomes Covit do Brasil's stamping and anodizing capabilities to the group. While this is a relatively small acquisition for us, their products and services will reinforce our product offerings, help us better serve our customers, and enhance our competitiveness in the fast growing South American markets."

OUTLOOK

Discussing the Company's outlook, Pfeiffer stated, "The diversification of our business has been a stabilizing factor in challenging times and we expect that to continue. As we look to the fourth quarter, some of our customers remain cautious going into the end of the year given the continuing weak consumer sentiment and, consequently, our global visibility remains limited at this time. However, we are cautiously optimistic that inventories may be bottoming out in certain markets though we expect the softness in the fragrance/cosmetic market to continue in the near-term. We will continue to diligently manage our costs without jeopardizing the flexibility necessary to respond to our customers' demands and we will maintain our strong balance sheet. When comparing our fourth quarter results to the prior year, it is important to note that declining resin costs in the fourth quarter of 2008 caused a $5.2 million reduction in our LIFO inventory reserve. This positive effect of approximately $.05 per diluted share is not expected to repeat in the fourth quarter of 2009. Excluding facilities consolidation and severance program charges, we anticipate diluted earnings per share for the fourth quarter to be in the range of $.43 to $.48 per share compared to $.46 per share in the prior year."

CASH DIVIDEND AND SHARE REPURCHASE PROGRAM

The Board of Directors declared a quarterly dividend of $.15 per share, payable November 18, 2009 to shareholders of record as of October 28, 2009.

During the quarter, the Company repurchased approximately 100,000 shares of common stock for approximately $3.5 million leaving approximately 4.2 million shares authorized for repurchase at the end of the third quarter.

OPEN CONFERENCE CALL

There will be a conference call on Thursday, October 15, 2009 at 7:00 a.m. CDT to discuss the Company's third quarter results for 2009. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptargroup.com. Replay of the conference call can also be accessed on the Investor Relations page of the web site.

AptarGroup, Inc. is a leading global supplier of a broad range of innovative dispensing systems for the fragrance/cosmetic, personal care, pharmaceutical, household and food/beverage markets. AptarGroup is headquartered in Crystal Lake, Illinois, with manufacturing facilities in North America, Europe, Asia, and South America. For more information, visit the AptarGroup web site at www.aptargroup.com.

This press release contains forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on management's beliefs as well as assumptions made by and information currently available to management. Accordingly, AptarGroup's actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist including, but not limited to, economic, environmental or political conditions in the various markets and countries in which AptarGroup operates, changes in customer and/or consumer spending levels; financial conditions of customers and suppliers; fluctuations in the cost of raw materials, components and other input costs; the Company's ability to increase prices, contain costs and improve productivity; changes in capital availability or cost, including interest rate fluctuations; the competitive marketplace; fiscal and monetary policy; changes in foreign currency exchange rates; direct or indirect consequences of acts of war or terrorism; and labor relations. For additional information on these and other risks and uncertainties, please see AptarGroup's filings with the Securities and Exchange Commission, including its Form 10-K's and Form 10-Q's. Readers are cautioned not to place undue reliance on forward-looking statements. AptarGroup undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(In Thousands, Except Per Share Data)
CONSOLIDATED STATEMENTS OF INCOME
                                                              Three Months Ended        Nine Months Ended
                                                              September 30,             September 30,
                                                              2009         2008         2009           2008
Net Sales                                                     $ 473,668    $ 532,180    $ 1,345,992    $ 1,615,757
Cost of Sales (exclusive of depreciation
shown below)                                                  320,675      366,637      899,222        1,102,325
Selling, Research & Development and
Administrative (1)                                            64,370       72,528       204,971        230,471
Depreciation and Other Amortization                           33,054       32,537       94,590         99,864
Facilities Consolidation and Severance Expenses               2,631        -            5,726          -
Operating Income (2)                                          52,938       60,478       141,483        183,097
Other Income/(Expense):
Interest Expense                                              (3,965    )  (5,261    )  (12,569     )  (14,204     )
Interest Income                                               772          3,475        2,758          10,334
Equity in Results of Affiliates                               -            194          -              417
Miscellaneous, net                                            (164      )  (635      )  (1,393      )  (1,320      )
Income before Income Taxes                                    49,581       58,251       130,279        178,324
Provision for Income Taxes (1)                                16,114       18,557       41,746         56,475
Net Income                                                    $ 33,467     $ 39,694     $ 88,533       $ 121,849
Net (Income)/Loss Attributable to Noncontrolling Interests    31           (43       )  90             (24         )
Net Income Attributable to AptarGroup, Inc.                   $ 33,498     $ 39,651     $ 88,623       $ 121,825
Net Income Attributable to AptarGroup, Inc. Per Common Share:
Basic                                                         $ 0.49       $ 0.59       $ 1.31         $ 1.79
Diluted                                                       $ 0.48       $ 0.57       $ 1.27         $ 1.72
Average Numbers of Shares Outstanding:
Basic                                                         67,691       67,670       67,691         67,958
Diluted                                                       69,550       69,937       70,000         70,812
Notes to Consolidated Statements of Income:
(1) In order to be comparable to the current period presentation,
the Company revised its 2008 presentation relating to a French
research and development tax credit by reclassifying amounts from
Provision for Income Taxes to Selling, Research & Development and
Administrative. For further details, refer to the Company's Form 8-K
that was filed with the Securities and Exchange Commission on July
17, 2009.
(2) Included in total Operating Income are expenses related to stock
options of approximately $1.6 million and $8.4 million in the third
quarter and first nine months, respectively, of 2009, and $1.3
million and $9.9 million in the third quarter and first nine months,
respectively, of 2008.

APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
CONSOLIDATED BALANCE SHEETS
                                         September 30, 2009  December 31, 2008
ASSETS
Cash and Equivalents                     $ 294,851           $ 192,072
Receivables, net                         325,392             343,937
Inventories                              229,871             244,775
Other Current Assets                     66,159              78,965
Total Current Assets                     916,273             859,749
Net Property, Plant and Equipment        770,547             720,882
Goodwill, net                            232,987             227,041
Other Assets                             21,442              24,150
Total Assets                             $ 1,941,249         $ 1,831,822
LIABILITIES AND EQUITY
Short-Term Obligations                   $ 90,461            $ 64,619
Accounts Payable and Accrued Liabilities 282,891             310,408
Total Current Liabilities                373,352             375,027
Long-Term Obligations                    210,773             226,888
Deferred Liabilities                     96,376              98,109
Total Liabilities                        680,501             700,024
AptarGroup, Inc. Stockholders' Equity    1,260,021           1,131,030
Noncontrolling Interests in Subsidiaries 727                 768
Total Equity                             1,260,748           1,131,798
Total Liabilities and Equity             $ 1,941,249         $ 1,831,822

APTARGROUP, INC.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
(In Thousands)
SEGMENT INFORMATION
                                                           Three Months Ended        Nine Months Ended
                                                           September 30,             September 30,
                                                           2009         2008         2009           2008
NET SALES
Beauty & Home                                              $ 239,621    $ 271,654    $ 665,234      $ 844,328
Closures                                                   124,788      142,424      365,051        420,945
Pharma                                                     109,258      118,102      315,705        350,479
Other                                                      1            -            2              5
Total Net Sales                                            $ 473,668    $ 532,180    $ 1,345,992    $ 1,615,757
SEGMENT INCOME (1) (2)
Beauty & Home (3)                                          $ 16,815     $ 21,409     $ 38,769       $ 76,451
Closures (3)                                               10,443       12,280       35,800         35,597
Pharma (3)                                                 31,269       35,077       91,752         101,171
Corporate Expenses and Other                               (5,722    )  (8,772    )  (26,141     )  (31,049     )
Total Income Before Interest and Taxes                     $ 52,805     $ 59,994     $ 140,180      $ 182,170
Interest Expense, Net                                      (3,193    )  (1,786    )  (9,811      )  (3,870      )
Net Income/(Loss) Attributable to Noncontrolling Interests (31       )  43           (90         )  24
Income before Income Taxes                                 $ 49,581     $ 58,251     $ 130,279      $ 178,324
SEGMENT INCOME AS % OF NET SALES
Beauty & Home                                              7.0       %  7.9       %  5.8         %  9.1         %
Closures                                                   8.4       %  8.6       %  9.8         %  8.5         %
Pharma                                                     28.6      %  29.7      %  29.1        %  28.9        %
Notes to Segment Information:
(1) The Company evaluates performance of its business units and
allocates resources based upon income before interest expense net of
interest income, stock option and corporate expenses, income taxes
and certain unusual items.
(2) In order to be comparable to the current period presentation,
the Company revised its 2008 presentation relating to a French
research and development tax credit. For further details, see Note
(1) to Consolidated Statements of Income.
(3) Included in the segment income figures reported above, are
consolidation/severance expenses as follows:
CONSOLIDATION/SEVERANCE EXPENSES
Beauty & Home                                              $ 1,246      $ -          $ 1,503        $ -
Closures                                                   1,385        -            4,223          -
Pharma                                                     -            -            -              -
Total Consolidation/Severance Expenses                     $ 2,631      $ -          $ 5,726        $ -

SOURCE: AptarGroup, Inc.

Stephen J. Hagge 
AptarGroup, Inc. 
815-477-0424