Article Tools
TORONTO - Packaging firm CCL Industries Inc. (TSX:CCL.B) reported Thursday a third-quarter profit of $16.6 million, down 25 per cent from a year-before $22.1 million on lower operating income, higher corporate expense and higher net interest expense.
The Toronto-based company said its earnings amounted to 51 cents per share, versus 68 cents per share in the prior-year period.
"Operating income was down by $4.2 million or 13 per cent primarily due to the unfavourable performance in the container division, partially offset by slightly improved results at label division and a strong improvement at the tube division compared to the prior year quarter," CCL said in a statement.
"Along with many of our customers and suppliers we saw some signs of improvement in global business conditions, particularly in North America during the third quarter," stated president and CEO Geoffrey Martin.
"Market demand also continued at robust levels in both Latin America and Asia. Although we saw both comparative and sequential improvements in our European operations, business there remains below the levels of one year ago."
Sales were up 1.6 per cent to $294.3 million as business conditions improved, the company said in a release, helped by acquisitions in its label division and one per cent in organic growth.
Martin called the container division's performance "unacceptable," but added it was expected since U.S. market conditions remain challenging with continued lower demand for high-end aerosol cans and a slow summer for aluminum beverage bottles.
Rate this article
