Pactiv Corporation has reported second-quarter income of $58 million (€58.7m) compared with $45 million last year.
Reported net income was $60 million, compared with $69 million, last year. The $60 million included $4 million pretax, $2 million after tax, from a partial reversal of a previously recorded restructuring charge. Last year's results included income of $24 million, from discontinued operations representing the sale of the company's remaining holdings of Packaging Corporation of America stock.
Volume grew 8 per cent primarily driven by strength in the base business as well as new product introductions. Sales increased slightly after adjusting for the impact of foreign currency exchange and divestitures. Second-quarter reported sales of $728 million were even with last year as a result of lower pricing related to the pass through of reduced raw material costs to customers.
"Our performance continues to be solid. Following strong 4 per cent volume growth in the first quarter we achieved exceptional growth of 8 per cent in the second quarter driven significantly by new products. The impact of our productivity initiatives continues to be impressive. As a result, we achieved a record operating margin. Once again, our free cash flow was very strong, leading us to believe we will exceed our target of $200 million this year," said Richard Wambold, Pactiv's chairman and chief executive officer.
Pactiv Corporation, a $2.8 billion company, is a leading provider of advanced packaging solutions for the consumer, foodservice/food packaging and protective/flexible packaging markets. The speciality packaging leader currently operates 72 facilities in 13 countries around the world.