West Pharmaceutical Services, Inc. (NYSE:WST) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 09:00 am ET

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West Pharmaceutical Services, Inc. (NYSE:WST) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Q1 2018 West Pharmaceutical Services Earnings Conference Call. (Operator Instructions) As a reminder, this conference call maybe recorded for replay purposes.

It is now pleasure to turn the conference over to Mr. Quintin Lai, Vice President of Investor Relations. Sir, you may begin.

Executive
Quintin Lai

Thank you, Brian. Good morning, and welcome to West's first quarter 2018 conference call. We issued our financial results this morning and the release has been posted in the Investor section on the company's Website located at www.westpharma.com. This morning CEO, Eric Green and CFO, Bill Federici, will review our results, give you an update on our business and provide an updated financial outlook for the full year 2018. There's a slide presentation that accompanies today's conference call and a copy of that presentation is also available on the Investor's section of our Website.

On Slide 2 is the Safe Harbor statement. Statements made by management on this call and in the presentation contain forward-looking statements within the meaning of US federal securities law. These statements are based on management's beliefs and assumptions, current expectations, estimates and forecasts. There are many factors that can influence the company's future results that are beyond the ability of the company to control or predict. Because of these known or unknown risks or uncertainties, actual results could differ materially from past results and those expressed or implied in any forward-looking statement.

For a non-exclusive list of factors which could cause actual results to differ from our expectations, please refer to today's press release as well as any further disclosures the company makes regarding the risk to which it is subject in the company's 10-K, 10-Q and 8-K reports.

In addition, during today's call, management will make reference to non-GAAP financial measures, including sales in constant currency, organic sales growth, adjusted operating profit, adjusted operating profit margin and adjusted diluted EPS. Reconciliations and limitations of the non-GAAP financial measures to the most comparable financial results prepared in conformity to GAAP are provided in this morning's earnings release.

I now turn the call over to West's CEO and President Eric Green.

Executive
Eric Green

Great. Thank you, Quintin, and good morning everyone. Thank you for joining us today. This morning we reported our first quarter performance. And you have seen in our press release we grew overall sales despite the headwinds and the tough first quarter comparison that we forecasted at the beginning of the year. Our generics market unit posted another quarter of accelerating growth. In our Contract Manufacturing segment also saw impressive growth in the quarter. There are positive signs of future growth across all market units and we're confident in the underlying strength of our business as we look to the remainder of 2018. Let's now turn to the detail of our market unit performances for the first quarter.

On Slide 4, we show the organic sales growth performance of each of the three market units in our Proprietary Product segment and our Contract Manufacturing