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Consumers Packaging: 1999 and first-quarter 2000 results

Canada“s Consumers Packaging Inc. reported net losses for the fourth quarter and year 1999, and a sharply narrowed loss for the first quarter 2000.
For the three months ended December 31, 1999, the…

Canada“s Consumers Packaging Inc. reported net losses for the fourth quarter and year 1999, and a sharply narrowed loss for the first quarter 2000. For the three months ended December 31, 1999, the company had a consolidated net loss of C$ 102.9 million, or C$ 2.70 per share. The loss was primarily a result of the following: the write-off of an investment of C$ 21.5 million in a SAP management software system and C$ 11 million of other asset impairments, recognition of a C$ 27 million valuation allowance against a previously established net deferred tax asset, C$ 8.5 million of additional losses from a now-sold distribution subsidiary and C$ 6.3 million of adjustments to US subsidiary results required by Canadian accounting principles. Gross sales for the 1999 fourth quarter, including the effect of an acquisition, were C$ 368.3 million. Consumers Packaging had a net loss of C$ 14 million, or C$ 0.42 per share, in the fourth quarter of 1998. For the 12 months ended December 31, 1999, Consumers Packaging had a net loss of C$ 126.5 million, or C$ 3.37 a share. Overseas glass manufacturing operations, plastic operations and the now-sold distribution subsidiary contributed C$ 23.6 million to the net loss for the year, exclusive of the write-off of the software and other asset impairments. Gross sales were C$ 1.59 billion, up 2.8% from 1998. Net results for 1998 were a loss of C$ 48 million, or C$ 1.45 a share. The company had a consolidated net loss of C$ 3.1 million for the three months ended March 31, compared to a loss of C$ 12.5 million for the same period in 1999. The net loss in the first quarter of 2000 is entirely attributable to the adjustments of both US subsidiaries“ results required by Canadian accounting principles. Results include a gain of C$ 6.1 million from the sale of Anchor“s closed Houston facility. The comparable 1999 results included C$ 7 million of income resulting from recording a tax benefit. The first quarter of 2000 showed improved results at the company“s Canadian operations and at both the Anchor Glass Container and GGC subsidiaries. Both subsidiaries reported net income, excluding Canadian accounting adjustments. Consolidated gross sales were C$ 379.4 million, 9.7% higher than for the 1999 first quarter. Operating income more than doubled to C$ 15.6 million. Cash from operations also more than doubled from the year-ago period. Working capital increased nearly C$ 26 million from year-end. “Consumers Packaging is now better positioned for improved financial performance. The market fundamentals for the glass container industry remain sound, and our sales efforts are bearing fruit,” said John J. Ghaznavi, chairman and CEO.

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