Graphic packaging results

Graphic Packaging International has reported a further drop in its second quarter net income.

Net income attributable to common shareholders for the second quarter of 2001 was $1.2 million (€1.2m). Net sales for the quarter were $263.9 million, compared to $283.3 million in the second quarter of 2001.Overall net loss attributable to common shareholders for the first six months of 2002 was $186.8 million, which includes $180.0 million of goodwill impairment. Net sales for the first six months were $527.6 million, compared to $571.7 million for the comparable period of 2001.

Sales during the second quarter of 2002 were down approximately $19.3 million from the same period last year, showing similar softness to that which was exhibited during the first quarter of this year. Many customers continue to realign their inventories and work through consolidations; however, the company believes that it has maintained its market share.

Commenting on the company's performance, CEO Jeffrey H. Coors said, "The second quarter was a challenge. Lower volume was the main contributor to lower earnings, but we're satisfied that our operations were able to control costs which helped to mitigate some of the shortfall. We continued to reduce debt, paying down $14.7 million during the quarter and reducing the balance from $534.2 million to $519.5 million. We are encouraged by the strength of new orders and new product qualification activity and we're cautiously optimistic that this increased order activity could translate into stronger sales during the second half of the year."​

Graphic Packaging is a leading North American manufacturer of folding cartons, making cartons for the food, beverage and other consumer products markets. The company has 17 modern plants and approximately 4,200 employees in North America. Its customers make some of the most recognisable brand-name products in their markets.