WEST PHARMACEUTICAL SERVICES INC
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
WST$399.81+1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-25.
0000105770-24-000031
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0000105770-24-000066
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 109 previous paragraphs and 129 current paragraphs.
66 unchanged; 37 reworded; 21 added; 6 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 11 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
(3)Restructuring and other charges of$0.1 millionfor both thethree and six months ended June 30, 2023 represents the net impact of an inventory write down of$0.9 million within cost of goods and services sold and a $0.8 million benefit within other expense (income)for revised severance estimates in connection with its 2022 restructuring plan.
Current report
Consolidated net sales decreased by $51.7 million, or 6.9%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $6.1 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $1.1 million, consolidated net sales for the three months ended June 30, 2024 decreased by $44.5 million, or 5.9%, as compared to the same period in 2023.
Current report
Consolidated net sales decreased by $72.9 million, or 5.0%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.7 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $4.3 million, consolidated net sales for the six months ended June 30, 2024 decreased by $65.9 million, or 4.5%, as compared to the same period in 2023.
Current report
Proprietary Products – Proprietary Products net sales decreased by $81.9 million, or 6.8%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.6 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $4.3 million, net sales for the six months ended June 30, 2024 decreased by $75.0 million, or 6.3%, as compared to the same period in 2023, due to a decline in sales of certain high-value product offerings due to customer inventory management, primarily Westar® components, FluroTec® products and Daikyo Crystal Zenith®. These reductions were partially offset by an increase in sales of NovaPure® products and self-injection device platforms, as well as increased sales prices.
Current report
Consolidated gross profit decreased by $61.4 million, or 21.1%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.2 million. Consolidated gross profit margin decreased by 5.9 margin points for the three months ended June 30, 2024, as compared to the same period in 2023.
Current report
Consolidated gross profit decreased by $102.5 million, or 18.2% for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.9 million. Consolidated gross profit margin decreased by 5.4 margin points for the six months ended June 30, 2024, as compared to the same period in 2023.
Current report
Proprietary Products gross profit decreased by $105.1 million, or 20.2%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.9 million. Proprietary Products gross profit margin decreased by 6.2 margin points for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to lower plant absorption from reduced customer demand and an unfavorable mix of products sold. These headwinds were partially offset by increased sales prices.
Current report
Contract-Manufactured Products gross profit increased by $1.7 million, or 3.8%, for the six months ended June 30, 2024, as compared to the same period in 2023. Contract-Manufactured Products gross profit margin increased by 0.1 margin points for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to increased sales prices.
Current report
Consolidated SG&A costs decreased by $5.4 million, or 6.1%, for the three months ended June 30, 2024, as compared to the same period in 2023, due primarily to a decrease in expense related to stock-based compensation, lower annual incentive compensation and a favorable foreign currency translation impact of $0.4 million, offset by increased compensation costs.
Current report
Proprietary Products -Proprietary Products SG&A costs decreased by $2.8 million, or 4.8%, for the three months ended June 30, 2024, as compared to the same period in 2023. Proprietary Products SG&A costs decreased primarily due to lower annual incentive compensation and a favorable foreign currency translation impact of $0.4 million, offset by increased compensation costs.
Current report
Contract-Manufactured Products -Contract-Manufactured Products SG&A costs increased by $0.1 million, or 1.6% for the three months ended June 30, 2024, as compared to the same period in 2023, and increased by $0.3 million, or 2.5% for the six months ended June 30, 2024, as compared to the same period in 2023.
Current report
Corporate SG&A costs decreased by $6.4 million, or 13.6%, for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to a decrease in expense related to stock-based compensation, offset by increased compensation costs.
Current report
Proprietary Products other expense (income) changed by$0.4 million for thesix months ended June 30, 2024, as compared to the same period in 2023, primarily due to additional asset impairments being recorded in the six months ended June 30, 2023, as compared to the same period in 2024. This was offset by increased losses on foreign exchange transactions and increased contingent consideration expense being recorded in thesix months ended June 30, 2024, as compared to the same period in 2023.
Current report
Contract-Manufa ctured Products -Contract-Manufactured Products other expense (income) changed by$0.3 million for thethree months ended June 30, 2024, as compared to the same period in 2023 and changed by$0.6 million for thesix months ended June 30, 2024, as compared to the same period in 2023.
Current report
Corporate and unallocated items changed by$9.5 million for thesix months ended June 30, 2024, as compared to the same period in 2023, primarily due to the Company recording expense of$11.6 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment, offset by the Company recording a benefit of $0.8 million for revised estimates associated with its restructuring plans inthe six months ended June 30, 2023 that did not repeat in 2024.
Current report
Consolidated operating profit decreased by $56.3 million, or 30.8%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $1.9 million for the three months ended June 30, 2024, as compared to the same period in 2023.
Current report
Consolidated operating profit decreased by $88.8 million, or 26.3%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.6 million for the six months ended June 30, 2024, as compared to the same period in 2023.
Current report
Contract-Manufactured Products -Contract-Manufactured Products operating profit increased by $2.3 million, or 15.4%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of$0.2 million, due to the factors described above, most notably the increased sales prices.
Current report
Contract-Manufactured Products operating profit increased by $2.0 million, or 6.2%, for the six months ended June 30, 2024, as compared to the same period in 2023, due to the factors described above, most notably the increased sales prices.
Current report
Excluding the unallocated items, Corporate costs decreased by$5.1 million, or 10.8%, for the six months ended June 30, 2024, as compared to the same period in 2023, due to the factors described above, most notably thedecrease in expense related to stock-based compensation.
Current report
Interest Expense, Net and Interest Income
Removed paragraphs (6)
Previous report
Consolidated net sales decreased by $21.2 million, or 3.0%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $3.4 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $3.2 million, consolidated net sales for the three months ended March 31, 2024 decreased by $21.4 million, or 3.0%, as compared to the same period in 2023.
Previous report
Consolidated gross profit decreased by $41.1 million, or 15.1%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $1.3 million for the three months ended March 31, 2024, as compared to the same period in 2023. Consolidated gross profit margin decreased by 4.8 margin points for the three months ended March 31, 2024, as compared to the same period in 2023.
Previous report
Contract-Manufactured Products -Contract-Manufactured Products other expense (income) changed by $0.3 million for the three months ended March 31, 2024, as compared to the same period in 2023.
Previous report
Consolidated operating profit decreased by $32.5 million, or 20.9%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $1.2 million for the three months ended March 31, 2024, as compared to the same period in 2023.
Previous report
Contract-Manufactured Products -Contract-Manufactured Products operating profit decreased by $0.3 million, or 1.7%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.1 million, due to the factors described above, most notably increased labor costs that were driven by inflation.
Previous report
Interest Expense, Net
Reworded paragraphs (37)
Previous wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures:
Current wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and six months ended June 30, 2024:
Previous wording
During the first quarter 2024, we recorded a tax benefit of $10.9 million associated with stock-based compensation.
Current wording
During thethree and six months ended June 30, 2024, we recorded a tax benefit of $5.7 million and $16.6 million, respectively, associated with stock-based compensation.
Previous wording
During the first quarter 2023, we recorded a tax benefit of $11.6 million associated with stock-based compensation.
Current wording
During thethree and six months ended June 30, 2023, we recorded a tax benefit of $7.7 million and $19.3 million, respectively, associated with stock-based compensation.
Previous wording
(1)During the three months ended March 31, 2024 and 2023, the Company recorded $0.2 million of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020. During the three months ended March 31, 2024 and 2023, the Company recorded $0.5 million of amortization expense in association with an acquisition of increased ownership interest in Daikyo.
Current wording
(1)During the three and six months ended June 30, 2024 and 2023, the Company recorded$0.2 million and$0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during thesecond quarter of 2020. During the three and six months ended June 30, 2024 and 2023, the Company recorded $0.5 million and $1.0 million, respectively, of amortization expensein association with an acquisition of increased ownership interest in Daikyo.
Previous wording
(2)During the three months ended March 31, 2023, the Company recorded expense of $9.4 million within other expense (income), as a result of the sale of one of the Company's manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.
Current wording
(2)During the three and six months ended June 30, 2023, the Company recorded expense of $2.2 million and $11.6 million, respectively, within other expense (income), as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.
Previous wording
Proprietary Products – Proprietary Products net sales decreased by $23.6 million, or 4.0%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $2.8 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $3.2 million, net sales for the three months ended March 31, 2024 decreased by $23.2 million, or 4.0%, as compared to the same period in 2023, primarily due to a decline in sales of certain high-value product offerings, primarily FluroTec® products, Westar® components and a decrease in the sales of standard components. These reductions were partially offset by an increase in sales of NovaPure® products, self-injection device platforms and Daikyo Crystal Zenith® components, as well as increased sales prices.
Current wording
Proprietary Products – Proprietary Products net sales decreased by $58.3 million, or 9.4%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $5.4 million. Excluding foreign currency translation effects and removal of the 2023 sales impact related to one of our plants that was disposed of in the second quarter of 2023 of $1.1 million, net sales for the three months ended June 30, 2024 decreased by $51.8 million, or 8.4%, as compared to the same period in 2023, due to a decline in sales of certain high-value product offerings due to customer inventory management, primarily Westar® components, Daikyo Crystal Zenith® and FluroTec® products. These reductions were partially offset by an increase in sales of self-injection device platforms and Envision® products, as well as increased sales prices.
Previous wording
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $2.4 million, or 1.8%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.6 million. Excluding foreign currency translation effects, net sales for the three months ended March 31, 2024 increased by $1.8 million, or 1.3%, as compared to the same period in 2023, primarily due to an increase in sales of components associated with diagnostic devices and increased sales prices.
Current wording
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $6.6 million, or 4.9%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.7 million. Excluding foreign currency translation effects, net sales for the three months ended June 30, 2024 increased by $7.3 million, or 5.4%, as compared to the same period in 2023, primarily due to an increase in sales of components associated with injection-related devices and sales price increases.
Previous wording
Contract-Manufactured Products -Contract-Manufactured Products SG&A costs increased by$0.2 million, or 3.3% for the three months ended March 31, 2024, as compared to the same period in 2023.
Current wording
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $9.0 million, or 3.3%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.1 million. Excluding foreign currency translation effects, net sales for the six months ended June 30, 2024 increased by $9.1 million, or 3.4%, as compared to the same period in 2023, primarily due to an increase in sales of components associated with injection-related devices and sales price increases.
Previous wording
Proprietary Products -Proprietary Products gross profit decreased by $40.7 million, or 16.4%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $1.2 million. Proprietary Products gross profit margin decreased by 5.5 margin points for the three months ended March 31, 2024, as compared to the same periods in 2023, due to lower sales volume and an unfavorable mix of products sold. These headwinds were partially offset by increased sales prices.
Current wording
Proprietary Products -Proprietary Products gross profit decreased by $64.4 million, or 23.7%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $2.1 million. Proprietary Products gross profit margin decreased by 6.9 margin points for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to lower plant absorption from reduced customer demand and an unfavorable mix of products sold. These headwinds were partially offset by increased sales prices.
Previous wording
Contract-Manufactured Products -Contract-Manufactured Products gross profit decreased by $0.4 million, or 1.7%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $0.1 million. Contract-Manufactured Products gross profit margin decreased by 0.6 margin points for the three months ended March 31, 2024, as compared to the same period in 2023, due to inflationary pressures, primarily within compensation costs, and unfavorable mix of product sold. These headwinds were partially offset by increased sales prices.
Current wording
Contract-Manufactured Products -Contract-Manufactured Products gross profit increased by $2.1 million, or 10.0%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.1 million. Contract-Manufactured Products gross profit margin increased by 0.8 margin points for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to increased sales prices.
Previous wording
Consolidated R&D costs increased by $0.5 million, or 2.9%, for the three months ended March 31, 2024, as compared to the same period in 2023, due to additional research performed to identify new product opportunities. Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumables.
Current wording
Consolidated R&D costs increased by$1.0 million, or 6.1%, and $1.5 million, or 4.5% for the three and six months ended June 30, 2024, respectively, as compared to the same period in 2023, due to additional research performed to identify new product opportunities. Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumables.
Previous wording
All of the R&D costs incurred during the three months ended March 31, 2024 and 2023 related to Proprietary Products.
Current wording
All of the R&D costs incurred thethree and six months ended June 30, 2024 and 2023 related to Proprietary Products.
Previous wording
Consolidated SG&A costs increased by$0.7 million, or 0.8%, for the three months ended March 31, 2024, as compared to the same period in 2023, primarily due to an increase in costs related to professional services and increased compensation costs, offset by a decrease in expense related to stock-based compensation.
Current wording
Consolidated SG&A costs decreased by $4.7 million, or 2.7%, for the six months ended June 30, 2024, as compared to the same period in 2023, due primarily to a decrease in expense related to stock-based compensation and a favorable foreign currency translation impact of $0.3 million, offset byincreased compensation costs and increased costs related to professional services.
Previous wording
Proprietary Products -Proprietary Products SG&A costs increased by$4.2 million, or 7.4%, for the three months ended March 31, 2024, as compared to the same period in 2023. Proprietary Products SG&A costs increased primarily due to an increase in costs related to professional services and increased compensation costs.
Current wording
Proprietary Products SG&A costs increased by $1.4 million, or 1.2%, for the six months ended June 30, 2024, as compared to the same period in 2023. Proprietary Products SG&A costs increased primarily due to increased compensation costs and an increase in costs related to professional services, offset by a favorable foreign currency translation impact of $0.3 million.
Previous wording
Corporate and unallocated items -Corporate SG&A costs decreased by$3.7 million, or 15.7%, for the three months ended March 31, 2024, as compared to the same period in 2023, primarily due to a decrease in expense related to stock-based compensation, offset by increased compensation costs.
Current wording
Corporate and unallocated items -Corporate SG&A costs decreased by $2.7 million, or 11.5%, for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to a decrease in expense related to stock-based compensation and lower annual incentive compensation, offset by increased compensation costs.
Previous wording
The following table presents other income and expense items, consolidated and by reportable segment, corporate and unallocated items:
Current wording
The following table presents other expense and income items, consolidated and by reportable segment, corporate and unallocated items:
Previous wording
Consolidated other expense (income) changed by $9.8 million for the three months ended March 31, 2024, as compared to the same period in 2023, due to the factors described below.
Current wording
Consolidated other expense (income) changed by $0.7 million for the three months ended June 30, 2024, as compared to the same period in 2023, and changed by $10.5 million for the six months ended June 30, 2024, as compared to the same period in 2023, due to the factors described below.
Previous wording
Proprietary Products -Proprietary Products other expense (income) changed by $1.0 million for the three months ended March 31, 2024, as compared to the same period in 2023, primarily due to additional asset impairments being recorded in the three months ended March 31, 2023, as compared to the same period in 2024.
Current wording
Proprietary Products - Proprietary Products other expense (income) changed by $0.6 million for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to increased losses on foreign exchange transactions being recorded in the three months ended June 30, 2024, as compared to the same period in 2023. This was offset by an increase in asset impairments recorded in the three months ended June 30, 2023, as compared to the same period in 2024.
Previous wording
Corporate and unallocated items -Corporate and unallocated other expense (income) changed by $8.5 million for the three months ended March 31, 2024, as compared to the same periods in 2023, primarily due to the Company recording expense of$9.4 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment inthe three months ended March 31, 2023 that did not repeat in 2024.
Current wording
Corporate and unallocated items -Corporate and unallocated items changed by$1.0 million for thethree months ended June 30, 2024, as compared to the same period in 2023, primarily due to the Company recording expense of $2.2 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment, offset by the Company recording a benefit of $0.8 million for revised estimates associated with its restructuring plans inthe three months ended June 30, 2023 that did not repeat in 2024.
Previous wording
The following table presents operating profit and adjusted operating profit, consolidated and by reportable segment, corporate and unallocated items:
Current wording
The following table presents adjusted operating profit, consolidated and by reportable segment, corporate and unallocated items:
Previous wording
Proprietary Products -Proprietary Products operating profit decreased by $44.4 million, or 26.0%, for the three months ended March 31, 2024, as compared to the same period in 2023, including a favorable foreign currency translation impact of $1.1 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.
Current wording
Proprietary Products -Proprietary Products operating profit decreased by $63.2 million, or 32.5%, for the three months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $1.7 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.
Previous wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs decreased by $2.8 million, or 12.1%, for the three months ended March 31, 2024, as compared to the same period in 2023, due to the factors described above.
Current wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs decreased by $2.3 million, or 9.5%, for the three months ended June 30, 2024, as comparedto the same period in 2023, due to the factors described above, most notably thedecrease in expense related to stock-based compensation.
Previous wording
The following table presents interest expense, net, by significant component:
Current wording
The following table presents interest expense, net, and interest income by significant component:
Previous wording
Interest expense, net, decreased $0.6 million for the three months ended March 31, 2024, as compared to the same period in 2023, due to an increase in capitalized interest, offset by higher interest rates compared to the prior year.
Current wording
Interest expense, net, decreased by $1.2 million, for the three months ended June 30, 2024, as compared to the same period in 2023, and decreased by $1.8 million, for the six months ended June 30, 2024, as compared to the same period in 2023, due to an increase in capitalized interest.
Previous wording
Interest income increased by $1.4 million for the three months ended March 31, 2024, as compared to the same period in 2023, due primarily from 2024 investments in liquid low-risk money market funds or bank deposits in the U.S., Europe, and South America yielding higher interest rates compared to 2023.
Current wording
Interest income decreased by $1.0 million for the three months ended June 30, 2024, as compared to the same period in 2023, primarily due to the Company having a lower average cash balance in three months ended June 30, 2024, as compared to the same period in 2023. Interest income increased by $0.4 million for the six months ended June 30, 2024, as compared to the same period in 2023, due primarily from 2024 investments in liquid low-risk money market funds or bank deposits in the U.S., Europe, and South America yielding higher interest rates compared to 2023.
Previous wording
The provision for income taxes was $16.4 million and $23.6 million for the three months ended March 31, 2024 and 2023, respectively, and the effective tax rate was 12.9% and 14.9%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for the three months ended March 31, 2024, as compared to the same period in 2023.
Current wording
The provision for income taxes was $21.9 million and $34.8 million for the three months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 17.0% and 18.8%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for the three months ended June 30, 2024 as compared to the same period in 2023.
Previous wording
Equity in net income of affiliated companies decreased by $1.4 million for the three months ended March 31, 2024, as compared to the same period in 2023, due to less favorable operating results at Daikyo and the Mexico affiliates.
Current wording
Equity in net income of affiliated companies decreased by $0.5 million for the three months ended June 30, 2024, as compared to the same period in 2023, due to less favorable operating results at Daikyo.
Previous wording
The following table presents cash flow data for the three months ended March 31:
Current wording
The following table presents cash flow data for the six months ended June 30:
Previous wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities decreased by $19.9 million for the three months ended March 31, 2024, as compared to the same period in 2023, primarily due to a decline in operating results.
Current wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities decreased by $24.1 million for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to a decline in operating results, offset by favorable working capital management.
Previous wording
Net Cash Used in Investing Activities – Net cash used in investing activities increased by $8.5 million for the three months ended March 31, 2024, as compared to the same period in 2023, due to an increase in capital expenditures for additional manufacturing capacity in 2024 to meet customer demand.
Current wording
Net Cash Used in Investing Activities – Net cash used in investing activities increased by $27.6 million for the six months ended June 30, 2024, as compared to the same period in 2023, due to an increase in capital expenditures for additional manufacturing capacity to meet customer demand.
Previous wording
Net Cash Used in Financing Activities – Net cash used in financing activities increased by $200.0 million for the three months ended March 31, 2024, as compared to the same period in 2023, primarily due to an increase in purchases under our share repurchase program in 2024, as compared to 2023.
Current wording
Net Cash Used in Financing Activities – Net cash used in financing activities increased by $241.5 million for the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to an increase in purchases under our share repurchase program in 2024, as compared to 2023.
Previous wording
Cash and cash equivalents – Our cash and cash equivalents balance at March 31, 2024 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments. The cash and cash equivalents balance at March 31, 2024 included $220.6 million of cash held by subsidiaries within the U.S., and $381.2 million of cash held by subsidiaries outside of the U.S. During the three months ended March 31, 2024, we purchased 729,679 shares of our common stock under our share repurchase program at a cost of $267.0 million, or an average price of $365.87 per share.
Current wording
Cash and cash equivalents – Our cash and cash equivalents balance at June 30, 2024 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments. The cash and cash equivalents balance at June 30, 2024 included $140.9 million of cash held by subsidiaries within the U.S., and $305.3 million of cash held by subsidiaries outside of the U.S. During the six months ended June 30, 2024, we purchased 1,239,015 shares of our common stock under the share repurchase program at a cost of $454.1 million, or an average price of $366.53 per share.
Previous wording
Working capital – Working capital at March 31, 2024 decreased by $220.1 million, or 17.4%, as compared to December 31, 2023, which includes an unfavorable foreign currency translation impact of$20.7 million. Excluding the impact of currency exchange rates, cash and cash equivalents and total current liabilities decreased by$243.6 million and$18.0 million, respectively, while accounts receivable increased by$18.5 million.
Current wording
Working capital – Working capital at June 30, 2024 decreased by $415.3 million, or 32.8%, as compared to December 31, 2023, which includes an unfavorable foreign currently translation impact of $23.1 million. Excluding the impact of currency exchange rates, cash and cash equivalents, accounts receivable and total current liabilities decreased by $398.3 million, $22.7 million and $27.7 million, respectively.
Previous wording
The decrease in cash and cash equivalents was due to capital expenditures and share repurchases, offset by cash from operations during the three months ended March 31, 2024. The decrease in total current liabilities was primarily driven by the payout of the 2023 annual incentive plan accrual during the three months ended March 31, 2024. The increase in accounts receivable was due to timing of collections.
Current wording
The decrease in cash and cash equivalents was due to capital expenditures and share repurchases, offset by cash from operations during the six months ended June 30, 2024. The decrease in accounts receivable is primarily due to reduced net sales leading up to the June 30, 2024 balance sheet date as compared to the December 31, 2023 balance sheet date. The decrease in total current liabilities was primarily caused by a decline in accounts payable and the payout of the 2023 annual incentive plan accrual during the six months ended June 30, 2024.
Previous wording
Debt and credit facilities – The $0.6 million decrease in total debt at March 31, 2024, as compared to December 31, 2023, resulted from debt repayments under our Term Loan.
Current wording
Debt and credit facilities – The $1.0 million decrease in total debt at June 30, 2024, as compared to December 31, 2023, resulted from debt repayments under our Term Loan.
Previous wording
•the timely and adequate availability of filling capacity, which is essential to conducting definitive stability trials and the timing of first commercialization of customers’ products in Daikyo Crystal Zenith® prefilled syringes;
Current wording
•the timely and adequate availability of filling capacity, which is essential to conducting definitive stability trials and the timing of first commercialization of customers’ products in Crystal Zenith prefilled syringes;
Previous wording
Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, therefore you should not rely on these forward-looking statements as representing our views as of any date other than today.
Current wording
Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and six months ended June 30, 2023:
Current report — wording carried from elsewhere
The following table presents net sales, consolidated and by reportable segment, for the six months ended June 30, 2024 and 2023:
Current report — wording carried from elsewhere
Proprietary Products operating profit decreased by $107.6 million, or 29.5%, for the six months ended June 30, 2024, as compared to the same period in 2023, including an unfavorable foreign currency translation impact of $0.6 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.
Current report — wording carried from elsewhere
The provision for income taxes was $38.3 million and $58.4 million for the six months ended June 30, 2024 and 2023, respectively, and the effective tax rate was 15.0% and 17.0%, respectively. The decrease in the effective tax rate is primarily due to a shift in the forecasted geographic earnings mix, offset by a decrease in the tax benefit related to stock-based compensation for the for the six months ended June 30, 2024, as compared to the same period in 2023.
Current report — wording carried from elsewhere
Equity in net income of affiliated companies decreased by $1.9 million for the six months ended June 30, 2024, as compared to the same period in 2023, due to less favorable operating results at Daikyo.