Glass packaging manufacturer Anchor Glass Container Corporation reported on 6 May 2004 financial results for its 1Q ended 31 March 2004.
In a press release, Anchor said that for the 1Q of 2004, net s…
Glass packaging manufacturer Anchor Glass Container Corporation reported on 6 May 2004 financial results for its 1Q ended 31 March 2004. In a press release, Anchor said that for the 1Q of 2004, net sales increased 16.7% to USD 189.6 million, from USD 162.4 million in the prior year, reflecting the impact of its new business awards and the continuation of the strong sales growth in all categories that began in the 2H of 2003. Net loss in the 1Q of 2004 was USD 4.3 million, or USD 0.17 per share (basic and diluted), as compared with a net loss of USD 11.9 million for the 1Q of 2003. Anchor attributed the improvement in sales mainly to the strong increase in shipping volumes, up 18.8% over the same period 2003 levels. Incremental volume from new business accounted for nearly half of the year-on-year increase, with all other segments showing solid growth, particularly the beer category. The Company said the decline in net loss resulted from the gains due to sales volume, higher manufacturing productivity due to improvement initiatives, lower interest cost and reduced rent expense as a result of the 2003 lease buyouts. However, Anchor said these positive factors were partially offset by higher energy and freight costs. “We are excited to have initiated shipping under our new contracts and we continue to see strong growth in all segments, particularly the beer category. In addition, the plant upgrades we completed last year are showing the results we expected as productivity in the 1Q showed significant improvement over last year,” said Richard M. Deneau, president and chief executive officer. Capital spending for the quarter totaled USD 20.9 million because of a major reconstruction on one of the two furnaces in the Shakopee, Minnesota factory; this project has been completed and the new furnace is now fully operational. Anchor said the Shakopee rebuild is the only major maintenance capital project planned for 2004. The Board of Directors of Anchor declared a quarterly dividend of USD 0.04 per share of its common stock. The dividend is payable 15 June 2004 to shareholders of record at the close of business on 1 June 2004. Anchor Glass Container Corporation is the third largest manufacturer of glass containers in the USA. It has nine facilities where it produces a diverse line of flint (clear), amber, green and other colored glass containers for the beer, beverage, food, liquor and flavored alcoholic beverage markets.