* Q2 EPS $0.18 vs $0.11 a year ago
* Sales fell 2 pct to $125.3 mln
July 23 (Reuters) - Canada’s Winpak Ltd (WPK.TO) reported a 65 percent increase in second-quarter profit, helped by higher margins and lower material costs.
For the quarter ended June 28, the company reported net earnings of $11.9 million, or 18 cents a share, compared with $7.2 million, or 11 cents a share, a year ago.
Sales of Winpak, which makes and distributes packaging materials and packaging machines, fell 2 percent to $125.3 million.
Gross profit margins were 31.7 percent of sales, up from 24.4 percent a year ago.
One analyst was expecting earnings per share of 14 cents, before items, on revenue of $120 million, according to Reuters estimates.
Sufficient financial resources are in place to fund cash requirements for the foreseeable future and to take advantage of acquisition opportunities, Winpak said in a statement.
Shares of the Winnipeg, Manitoba-based company closed up 6 percent at C$8.47 Thursday on the Toronto Stock Exchange. (Reporting by Sakshi A Mattoo in Bangalore; Editing by Unnikrishnan Nair)