The Canadian group Consumers Packaging, Inc. recently reported results for the fourth quarter and year ended 31 December 1996. Total revenues in the fourth quarter were US$ 106.3 million as compared t…
The Canadian group Consumers Packaging, Inc. recently reported results for the fourth quarter and year ended 31 December 1996. Total revenues in the fourth quarter were US$ 106.3 million as compared to US$ 105.1 million reported in the same period last year. Net earnings for the quarter were US$ 0.52 million, or US$ 0.02 per share on a fully diluted basis, compared with net earnings of US$ 1 million, or US$ 0.03 per share, for the fourth quarter of 1995. For the year ended 31 December 1996, the company reported revenues of US$ 462.3 million, compared with US$ 458.1 million for the same period in 1996. Net earnings for the year ended were US$ 14.8 million, or US$ 0.46 per share on a fully diluted basis, compared with US$ 26.2 million, or US$ 0.90 per share on a fully diluted basis for the comparable period in 1995. Mr. John Ghaznavi, Chairman and CEO, stated, “Despite operating during a year of excess capacity and uncertainty in the North American glass-container market, we are encouraged that Consumers not only maintained, but increased its unit sales in 1996. Industry pressures, however, resulted in an overall price decrease of 5%. Our acquisition of Anchor Glass will help stabilise the market, and during the first quarter of 1997 we are taking steps to adjust manufacturing capacity in both Canada and the US. As a result, we expect the Company“s financial performance, after costs of the acquisition and restructuring have been absorbed, to show improvement as 1997 progresses.” Mr. Ghaznavi continued, “In addition to our significant accomplishment of acquiring 11 manufacturing plants, a mould shop and a machine repair facility from Anchor Glass Container Corp., which had been operating under Chapter 11 of the US Bankruptcy Code, the Company expanded internationally. During 1996, the Company agreed to complete construction of a glass manufacturing plant in Teramo, Italy which will begin production in late 1997, and also acquired a 25.1% interest in Israel“s Phoenicia Glass Works from Koor Industries. Consumers has also formed a joint venture with a partner in Belarus, which will spearhead entry into the emerging Eastern European Markets. “I am very proud to announce that by a Company-wide effort, our employees have demonstrated their commitment to the highest quality standards by implementing a program that has resulted in Consumers becoming the first glass-container manufacturer in North America to be nominated for ISO-9001 certification for all of the Company“s Canadian plants. This is an important achievement for Consumers, our industry and our growing customer base,” concluded Mr. Ghaznavi. The Company also announced that Mr. Charles Rhodes, Consumers“ President and Chief Operating Officer, will retire on 31 March. His duties will be assumed by the members of Consumers“ senior management team. Jack Smathers has been appointed Vice President, Operations. David Jack has been appointed Vice President, Accounting and Treasurer, Richard Lachapelle, Vice President, Sales and Marketing, Gordon Stewart, Vice President, Manufacturing and Gary Walters, Corporate Secretary.