November 5, 2009 / 2:25 PM / 9 years ago

UPDATE 1-CCL Industries Q3 profit drops 25 pct

* Q3 EPS C$0.51 vs. C$0.68 last year

* Sales up 1.6 pct to C$294.3 mln

* Not seeing container division profitable before 2010

Nov 5 (Reuters) - Label and package maker CCL Industries Inc (CCLb.TO) posted a 25 percent drop in third-quarter profit, hurt by its weak container division and higher costs.

The company, which is not expecting the container division to return to profitability before 2010, said many cost-saving actions were underway to deliver improved performance.

The division was hurt by continued lower demand in the United States for high-end aerosol cans aggravated by a slow summer for aluminum beverage bottles.

The container division posted a loss of C$2.8 million ($2.64 million), compared with a profit of C$2.8 million a year-ago.

For the third quarter ended Sept. 30, CCL earned C$16.6 million, or 51 Canadian cents per class B share, down from C$22.1 million, or 68 Canadian cents per class B share, last year.

Sales rose 1.6 percent to C$294.3 million, helped by acquisitions in the label division.

Analysts on average expected earnings of 21 Canadian cents a share on revenue of C$273.47 million, according to Thomson Reuters I/B/E/S.

Selling, general and administrative expenses rose 12 percent to C$35 million.

Shares of the Toronto-based company closed at C$22.11 Wednesday on the Toronto Stock Exchange. ($1=1.062 Canadian Dollar) (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below