Riverwood improves in second quarter
solutions and paperboard, has reported increased second quarter
results.
Riverwood International, a leading provider of paperboard packaging solutions and paperboard, has reported increased second quarter results.
EBITDA rose to $79.8 million (€82m), up 10.7 per cent compared to $72.1 million in the second quarter of 2001. Net sales increased 2.1 per cent to $348.0 million in the second quarter of 2002 from $340.9 million in the prior-year period.
In comparing net sales in the second quarter of 2002 to the second quarter of 2001, the company recorded higher volumes in both the North American and international beverage and consumer products packaging markets, while lower volumes and pricing in containerboard markets somewhat offset these improvements.
Income from operations in the second quarter of 2002 of $41.2 million was up $4.3 million from income from operations of $36.9 million from the same period a year ago. The company claimed that this improvement was principally due to increased coated board volumes in the North American and international beverage and consumer products packaging markets and cost reductions, which were somewhat offset by lower containerboard pricing.
"Our second quarter 2002 results are encouraging. The results reflect fundamental improvements in our core beverage business, as well as the progress we continue to make in efforts to expand market share and penetrate new markets, shift our product mix to higher-margin CUK board in consumer products packaging markets and reduce operating costs. Even though weak economic conditions continued during the second quarter, we were still able to increase our coated board volumes, net sales and EBITDA results over last year's level. For the remainder of 2002, we will continue to focus on growing volumes in our higher margin coated board markets, reducing costs and improving cash flow," said Stephen M. Humphrey, president and chief executive officer.
Looking forward into the remainder of 2002, Riverwood expects continued improvement in its North American consumer products packaging and beverage carton markets.
