Graphic Packaging improves operating margins
folding carton manufacturer, reported first quarter net income
attributable to common shareholders of $2.4 million (€2.7 million)
on sales of $263.7 million, compared with a net income in the
fourth quarter 2001 of $1.5 million on sales of $270.0 million.
Graphic Packaging International Corporation, the North American folding carton manufacturer, reported first quarter net income attributable to common shareholders of $2.4 million (€2.7 million) on sales of $263.7 million, compared with a net income in the fourth quarter 2001 of $1.5 million on sales of $270.0 million.
The operating margin in the first quarter 2002 was 7.4 per cent, an increase of 100 basis points compared to the fourth quarter 2001. This increase reflects the benefits from ongoing improvement programs to production, with cost savings compensating for lower sales. The Company's commitment to Six Sigma and other cost reduction programs saved an estimated total of $55 million for the years 2000 and 2001. These programs are on track to meet or exceed similar annualised savings in 2002.
Commenting on the quarter, CEO Jeffrey H. Coors said, "Our lower operating costs reflect our organisation's commitment to improvement programs, such as Six Sigma. It also demonstrates our ability to react quickly by controlling variable costs and managing our production schedule across the 17-plant system. As sales improve with the economy, we believe our lean cost structure will translate into better margins and earnings." This quarter's successful cost containment strengthens the Company's position as one of the lowest-cost folding carton manufacturers.
