Packaging firm warned on stock price
Graphic Packaging Holding Company has not met the $1-per-share-minimum average 30 trading-day closing price to remain on the exchange.
However, under the NYSE's rules, the company has six months from its receipt of the notice to bring its average common share price back above $1, and, during the interim, the company’s common stock will remain listed on the NYSE.
David Scheible, CEO of the flexible and rigid packaging firm said that the current stock price is not a reliable indicator of the company's strong financial and operating position:
“Graphic Packaging is focused on stable food and beverage end use markets which tend to be recession resistant and has major positions with all the large consumer based companies that serve those markets.”
Earlier this month, the company announced that it is set to shut four plants in the US by the end of September and eliminate 650 jobs to achieve savings of $90m, and the firm also reported a loss of $14.4m at the end of the third quarter of 2008.
Scheible said that in March 2008 the operations of Graphic Packaging and Altivity Packaging were combined to create one of the world's largest packaging companies, and he said the firm is continuing to push aggressively this year to integrate assets and streamline operations:
“We intend to compete as the lowest cost producer in our markets. Our initiatives to integrate and optimize our manufacturing base ensure that our customers are reliably supported from a solid network of efficient, low-cost manufacturing facilities.
“We have focused steadily on these goals over the past 12 months, and we are better positioned today to strengthen our earnings performance and continue to reduce debt even under the current challenging operating environment," he added.
