DEERFIELD, Ill., Nov. 8 Pregis Corporation, a leadinginternational manufacturer, marketer, and supplier of protective packagingproducts and specialty packaging solutions, today announced its financialresults for the third quarter of 2007.
The Company generated net sales in the third quarter of $245.2 million, anincrease of 4.6% over net sales of $234.4 million in the third quarter of2006. Excluding the impact of favorable foreign currency translation, thequarter's net sales were relatively flat compared to the prior year quarter.Gross profit margin, as a percent of net sales, increased to 23.0% in thethird quarter of 2007 compared to 22.6% for the same period of 2006. Operatingincome increased to $10.4 million, compared to $9.2 million in the thirdquarter of 2006.
Commenting on the Company's results, Mike McDonnell, President and ChiefExecutive Officer, stated, "During the quarter, we successfully increasedproduct volumes across our European protective packaging, flexible packagingand hospital supplies businesses. However, volume declines within our NorthAmerican protective packaging businesses and our European rigid packagingsegment offset these increases. Our North American product volumes wereimpacted by our past and present efforts to rationalize product and customermix as well as by the weakened U.S. industrial economic environment, whiledemand in the U.K. market for our rigid packaging products suffered during thequarter due in part to soft market conditions."
"Despite the challenging market conditions affecting portions of ourbusiness, we continued to achieve improvements in our operating results," saidMr. McDonnell. "This was largely a result of our strong focus on productivityimprovements driven by the ongoing implementation of our lean programs andoperating culture throughout our operations, along with our continued emphasison pricing for value and optimizing product mix to improve the profitabilityof our products and our customer base. We are also pleased with the growthgenerated by our new products and other expansion efforts which contributed toour year-over-year improvement."
Comments on segment net sales performance for the third quarter of 2007are as follows:
A summary of a significant measure required by the Company's indentures ispresented in the supplemental information at the end of this release.
The Company will conduct an investor conference call to review its 2007third quarter results on Friday, November 9, 2007 at 10:00 a.m. ET(9:00 a.m. CT). The call can be accessed through the following dial-innumbers: Domestic: 888-713-4215; International: 617-213-4867; Conference ID:41201747. A replay of the conference call will be available through November23, 2007. The replay may be accessed using the following dial-in information:Domestic: 888-286-8010; International: 617-801-6888; Conference ID: 90293620.
Pregis Corporation is a leading global provider of innovative protective,flexible, and foodservice packaging and hospital supply products. Thespecialty-packaging leader currently operates 45 facilities in 18 countriesaround the world. Pregis Corporation is a wholly owned subsidiary of PregisHolding II Corporation. For more information about Pregis, visit the Company'sweb site at http://www.pregis.com.
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