August 6, 2009 / 1:46 PM / 9 years ago

UPDATE 1-CCL Industries Q2 profit falls 63 pct

* Q2 EPS C$0.27 vs yr-ago C$0.73

* Revenue down 4 pct

Aug 6 (Reuters) - Label and package maker CCL Industries Inc (CCLb.TO) posted a 63 percent drop in second-quarter profit, hurt by weakness at its container division in the United States and lower sales in Europe.

For the second quarter ended June 30, CCL earned C$8.9 million, or 27 Canadian cents per class B share, down from C$24.1 million, or 73 Canadian cents per class B share, a year ago.

Excluding items, the company reported earnings of 29 Canadian cents per basic class B share.

Sales fell 4 percent to C$301.3 million.

“Our earnings were also impacted significantly by higher net interest costs on increased debt levels compared to prior year, lower yields on our large cash balances,” CEO Geoffrey Martin said in a statement.

Martin said comparisons in Europe were particularly difficult this quarter as the deep recession was compounded by the timing of Easter vacations falling in different quarters.

The container division posted an operating loss of C$0.1 million, compared with an operating income of C$2.8 million, a year earlier, as weak demand in the United States hurt Aerosol sales to high-end personal care customers.

CCL class B shares closed at C$23.46 Wednesday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Ratul Ray Chaudhuri)

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