August 5, 2010 / 1:06 PM / 8 years ago

UPDATE 1-CCL Industries Q2 profit beats market estimates

* Q2 EPS C$0.55 vs est C$0.45

* Total sales rise slightly to C$302.2 mln

Aug 5 (Reuters) - Canadian label and package maker CCL Industries Inc (CCLb.TO) posted a second-quarter profit that beat market estimates, helped by strength at its tube segment.

“Customers responded to the better economic climate with many new initiatives to redesign packages, launch new products and rebuild inventories,” Chief Executive Geoffrey Martin said in a statement.

The company’s net income rose to C$18.4 million, or 55 Canadian cents per Class B share, from C$9 million, or 27 Canadian cents per Class B share, in the year-ago period.

Total sales rose to C$302.2 million from C$301.3 million.

Analysts on average expected the company to earn 45 Canadian cents a share, on revenue of C$303.1 million, according to Thomson Reuters I/B/E/S.

The company’s tube division, which makes extruded plastic tubes for the personal care and cosmetics industries, saw sales climb to C$20.4 million from C$17.0 million last year.

“We expect to sustain the recent profitability improvement trend (in our tube division), but volume will seasonally adjust over the balance of the year,” Martin added.

CCL Industries’ Class B shares closed at C$29.24 Wednesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Anne Pallivathuckal)

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