Graham Packaging Holdings, parent company of Graham Packaging Company, has reported healthy third quarter results. The group recorded a 19.8 per cent gain in operating income for the third quarter of 2003, compared to the third quarter of 2002.
Operating income for the nine-month period ended 28 September 2003 was up, though the increase is less impressive. A figure of $89.6 million for 2003, compared to $81.6 million for the previous nine-month period, translates as a gain of 9.8 per cent. These figures include impairment charges of $0.6 million and $4.3 million respectively.
Net sales for the third quarter were $243.9 million, an increase of $16.8 million, or 7.4 per cent, on an 11.6 per cent gain in units sold, compared to the third quarter of last year. Net sales totaled $737.7 million for the first nine months of 2003, an increase of $42.7 million, or 6.1 per cent, on a 6.9 per cent increase in units sold, compared to the first nine months of 2002.
"The turnaround and strengthening in our customers' order patterns that we have been anticipating have not fully arrived, but despite being well short of our internal goals this year, we have continued to make progress," said group chief executive Philip Yates.
"We have stayed on course by remaining committed to our strategy of establishing and deepening relationships with majorconsumer- products companies, focusing on improving operating efficiencies, and facilitating the ongoing market conversion of glass, metal, and paper packaging to plastic packaging."
As part of this continuing conversion process, the company recently announced two new locations: one in Mexicali, Mexico, to serveFrito- Lay, and the other in Casa Grande, Arizona, to serve Abbott Laboratories.
During this year, Graham completed a European restructuring that included the closing or sale of seven non-strategic locations. Excluding business impacted by this restructuring, the group claims that sales for the third quarter of 2003 would have increased approximately 9 per cent compared to the same period in 2002 and unit volume would have increased approximately 14 per cent. For the nine-month period, sales and unit volume would have increased 10 per cent compared to 2002.
Overall, the figures mark a satisfactory year for the group. The company's net income was $1.2 million for the third quarter of this year, compared to a loss of $1.1 million for the same period in 2002.
Graham Packaging is a global leader in the design, manufacture and sale of customised blow-molded plastic containers for the branded food and beverage, household and personal care, and automotive lubricants markets. The company employs approximately 3,900 people at 56 plants throughout North America, Europe and South America.
The group produced more than 9 billion units last year and recorded total worldwide net sales of $906.7 million in 2002. The Blackstone Group of New York is the majority owner of Graham Packaging.