July 23, 2009 / 9:11 PM / 9 years ago

UPDATE 1-Winpak's Q2 profit up 65 pct

* 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)

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