Portola Packaging reports drop in 3Q sales

Related tags Bottle Generally accepted accounting principles

US-based Portola Packaging, a manufacturer of closures and bottles
for the beverage industries, reported an 8 per cent drop in sales
in the third quarter of 2002 from $57.6 million in the same period
last year to $53 million (€56m).

US-based Portola Packaging, a manufacturer of closures and bottles for the beverage industries, reported an 8 per cent drop in sales in the third quarter of 2002 from $57.6 million in the same period last year to $53 million (€56m).

The first nine months of 2002 also saw a decrease in sales to $155.2 million compared to $159.5 million for the first nine months of 2001. The company did not offer an explanation for the decrease in sales. However operating income for the third quarter rose by 18 per cent, from $4.4 million in 2001 to $5.2 million in 2002.

Operating income of $10.6 million for the first nine months of 2002 showed significant rise from $5.5 million for same period of 2001. Net income was $1.3 million for the 2002 third quarter down from $1.5 million for the same period last year.

During the first nine months of fiscal 2001, the company incurred pretax restructuring charges of $1.9 million and saw a pretax gain of $6.7 million from the sale of property in California. Gross profit increased $0.6 million to $14.4 million for the third quarter of fiscal 2002 as compared to $13.8 million for the same quarter of the prior year.

EBITDA, including the effect of restructuring charges, the gain on the sale of property, and foreign exchange gains and losses, decreased to $10.3 million in the third quarter of fiscal 2002 as compared to $12.2 million in the second quarter of fiscal 2001 and decreased to $25.2 million for the first nine months of fiscal 2002 from $28.0 million for the same period in fiscal 2001.

On 1 September 2001, Portola adopted Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets" which eliminated goodwill amortisation expense in the third quarter and first nine months of fiscal 2002 of $0.6 million and $2.0 million, respectively.

Portola Packaging makes tamper evident plastic closures used in dairy, fruit juice, bottled water and sports drinks products. The company also produces a wide variety of plastic bottles and capping equipment for use in high speed bottling and packaging production lines.

Related topics Processing & packaging

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