Net sales for the International segment of $655.4 million decreased 6.9 percent from the third quarter of 2011, inclusive of a 453 basis point unfavorable impact from changes in foreign exchange rates. The balance of the change in net sales was driven by timing shifts in Latin America, volume declines in Europe and pricing pressure across the segment, partially offset by volume increases in Asia, Global Turnkey Solutions and Business Process Outsourcing and higher pass-through paper sales. The segment's operating income of $27.5 million in the third quarter of 2012, which was negatively impacted by charges for restructuring of $4.4 million, decreased by $9.2 million from operating income of $36.7 million in the third quarter of 2011, which included charges for restructuring of $4.6 million. The segment's non-GAAP operating margin declined to 4.9 percent in the third quarter of 2012 from 5.9 percent in the third quarter of 2011 as an unfavorable product mix, pricing pressure and wage and other inflationary increases in certain countries were partially offset by lower variable compensation expense, lower depreciation and amortization and a favorable impact from changes in foreign exchange rates.
- People:
- Thomas J. Quinlan III
- Places:
- Chicago