Canadian Packaging

CCL Industries has 10 per cent profit drop in Q3

Package maker's profit drops in Q3

November 4, 2010
by The Canadian Press

Toronto, Ont.: Higher expenses, tax rates and currency translations dragged down profits by 10 per cent at label and package maker CCL Industries Inc. in its third quarter.

The Toronto-based company, which operates around the world, reported Thursday it had net earnings of $14.9 million, compared with a profit of $16.6 million in the same period in 2009 .

Chief Executive Geoffrey Martin said the unusually low tax rate in the prior year quarter negatively affected net earnings comparisons.

The company reported 45 cents earnings per diluted share versus 51 cents in the same period a year ago.

Sales for quarter ended Sept. 30 were $301.7 million, up three per cent from the same quarter in 2009.

Martin said the company’s label and tube divisions continued their positive trend while the container division reported a small loss.

CCL Industries, based in Toronto, makes plastic containers for such products as laundry detergent and drinks and also makes aerosol cans, as well as plastic tubes for a variety of products. It also makes labels for prescription drugs and other pharmaceutical products. The company employs about 5,800 people and operates 60 plants around the world.

©2010 The Canadian Press