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Pregis Announces Fourth Quarter and Full Year 2008 Financial Results
Date:3/26/2009

2009."

Segment Performance

In the fourth quarter of 2008, the Company hired a new executive to manage the operations of the flexible packaging, hospital supplies and rigid packaging businesses as an integrated unit, in support of the Company's strategy to drive synergies across these businesses. In the fourth quarter of 2008, the Company began reporting the operations of its flexible packaging, hospital supplies and rigid packaging business as one reportable segment, Specialty Packaging, to be aligned with the aforementioned changes in its internal management structure. As a result, the Company now reports two reportable segments:

  • Protective Packaging - This segment manufactures, markets, sells and distributes protective packaging products in North America and Europe. Its protective mailers, air-encapsulated bubble products, sheet foam, engineered foam, inflatable airbag systems, honeycomb products and other protective packaging products are manufactured and sold for use in cushioning, void-fill, surface-protection, containment and blocking & bracing applications.
  • Speciality Packaging - This segment provides innovative packaging solutions for food, medical, and other specialty packaging applications primarily in the European market.

Comments on segment net sales performance for the fourth quarter of 2008 are as follows:

  • Net sales of the protective packaging segment decreased by $25.5 million, or 15.3%. The 2008 fourth quarter sales decline was driven by a 16% volume decline attributed to the weakened economic conditions in both the U.S. and European markets, along with unfavorable foreign currency translation. The volume declines were partially offset by improved pricing in the segment's U.S. and European operations, reflecting the benefit of selling price inc
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