For the 2007 fourth quarter, operating income was $4.9 million compared to $6.2 million in the fourth quarter of 2006. For the full year 2007, operating income increased to $46.0 million compared to $32.6 million in 2006. Both the 2007 fourth quarter and full year were impacted by the write-off of approximately $3.1 million of third party due diligence and legal costs related to a potential acquisition that was ultimately not consummated.
Comments on segment net sales performance for the fourth quarter of
2007 are as follows:
-- Net sales of the protective packaging segment increased by $11.6
million, or 7.4%. The increase resulted from product volume growth
across the segment's U.S. and European operations relative to the prior
year and favorable foreign currency effects. Excluding the impact of
favorable foreign currency effects, the segment's 2007 fourth quarter
net sales would have increased 2.3%.
-- Net sales of the flexible packaging segment increased $3.9 million, or
9.6%. The growth was driven by favorable foreign currency effects,
offset in part by unfavorable pricing due to customer mix. Volumes were
relatively flat compared to the prior year quarter. Excluding the
impact of favorable foreign currency effects, 2007 fourth quarter net
sales would have decreased 1.9%.
-- Net sales of the hospital supplies segment increased $2.5 million, or
16.0%. The increase was due to higher volumes in disposable medical
products and surgical procedure packs as well as favorable foreign
currency effects, offset in part by unfavorable pricing due to
competitive pricing pressures. Excluding the impact of favora
|SOURCE Pregis Corporation|
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