US company Ivex Packaging Corporation has reported that its sales for the first quarter of this year have fallen from $159.5 million (€176.5 million) to $140.2 million. However, net income for the quarter increased to $5.8 million, or $0.28 per share, compared to $4.2 million the previous year.
George V. Bayly, Chairman and Chief Executive Officer, commented, "We are pleased to report another strong quarter of financial performance. Reported earnings per share increased by 33 per cent, or 22 per cent before the effect of the required goodwill accounting change. Volumes remain strong in our core Food Packaging business with mid-single digit unit growth being offset by reduced selling prices related to lower raw material costs. Volumes in our Protective Packaging business were negatively impacted by the weak economic conditions. We also achieved strong margin improvement in our Consumer Packaging business. Management remains confident in our ability to deliver strong financial results throughout the remainder of 2002."
The Company previously announced that it has entered into an Agreement and Plan of Merger with Alcoa Inc. pursuant to which the shareholders of Ivex will receive, for each outstanding share of Ivex common stock, $21.50 in cash and a pro-rata distribution of the Ivex 48.2 per cent interest in the common stock of Packaging Dynamics Corporation. This transaction is subject to, among other things, the approval of Ivex's shareholders and customary regulatory approvals. The transaction is expected to close during the second quarter of2002.
There is a recording of the broadcast used to announce the financials to investors on the company home page, which can be accessed at www.ivexpackaging.com
Ivex is a vertically integrated specialty packaging company engaged in the manufacturing and marketing of a broad range of plastic and paper products to the consumer, medical, electronics, computer and technical markets.