DEERFIELD, Ill., May 12 /PRNewswire/ -- Pregis Corporation, a leading international manufacturer, marketer, and supplier of protective packaging products and specialty packaging solutions, today announced its 2009 first quarter financial results.
For the first quarter of 2009, the Company generated net sales of $185.5 million, a decrease of 28.5% versus net sales of $259.3 million in the first quarter of 2008. Excluding the impact of unfavorable foreign currency translation, resulting from the U.S. dollar strengthening against the euro and pound sterling, the quarter's net sales were down 18.8% compared to the prior year quarter due to continuing global economic weakness.
Gross profit margin, as a percent of net sales, was 24.0% in the first quarter of 2009, compared to 21.9% in the first quarter of 2008. The 210 basis point increase in margin percentage was driven by the impact of the Company's aggressive cost reduction initiatives, continued disciplined pricing, and the impact from lower raw material costs.
The Company generated an operating loss of $1.5 million in the first quarter of 2009, which included pre-tax restructuring charges of $6.7 million relating to the Company's cost reduction initiatives, as well as unfavorable foreign currency translation of approximately $2.0 million. This compared to operating income of $8.3 million for the first quarter of 2008. Adjusted for the restructuring charge and unfavorable foreign currency translation, operating income for the first quarter of 2009 was $7.2 million, which represents a decline of approximately 13% compared to the 2008 first quarter.
Commenting on the Company's results, Mike McDonnell, President and Chief Executive Officer, stated, "During the quarter, despite very weak demand, we were able to substantially increase our margin percentages through our focus on driving sustainable cost reductions throughout our organization as w
|SOURCE Pregis Corporation|
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