Winnipeg Free Press - PRINT EDITION

Winpak's revenue hits record in quarter

Dej dcjdec

  • Print

ONGOING investment in new technologies and equipment continues to pay big dividends for plastic-packaging manufacturer Winpak Ltd.

On Thursday, the Winnipeg-based company reported record revenue and a nearly eight per cent increase in profit for the second quarter of the year.

In a telephone interview from Georgia, where one of Winpak's eight other production plants are located, company president and CEO Bruce Berry said some of the additional sales came from existing customers adding to their inventories. But the bulk came from new business the company lured away from competitors who haven't invested in new technology to the same extent.

"That (investment) has allowed us to stay on the leading edge" when it comes to producing high-quality packaging products, Berry said.

Winpak said its second-quarter revenues grew by $17.4 million, or 10.9 per cent, to $177 million from $159.7 million in the same 2012 period.

It said the increase was mainly due to a surge in sales of rigid containers and plastic lidding (both up 20 per cent), and packaging machines (up nearly 40 per cent).

The sales jump, along with improved gross profit margins, drove up net earnings for the quarter 7.9 per cent to $17.1 million, or 26 cents per share, from $15.9 million, or 25 cents per share, a year earlier.

The company's strong second-quarter showing more than made up for a 1.1 per cent dip in revenue in the first quarter of the year. It left revenue running 4.7 per cent ahead of last year's pace after the first six months of 2012 -- $347 million versus $331.5 million.

Net earnings were running 2.1 per cent ahead -- $33.1 million, or 51 cents a share, versus $32.4 million, or 50 cents a share.

Berry said the company's prospects look promising. "The (North American) economy seems to be turning a little, and that will be a plus for all industries," he said.

Winpak recently completed a 100,000-square-foot expansion of its Montreal production plant, he noted. A previously announced $10-million, 80,000-square-foot expansion of its main Winnipeg plant is well underway and should be done by the end of the year. Plans are being finalized for a major expansion of its Georgia facility.

"So everything is going pretty well."

murray.mcneill@freepress.mb.ca

 

Republished from the Winnipeg Free Press print edition July 26, 2013 B11

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Key of Bart: 2014 Year in Review

View more like this

Photo Store Gallery

  • A mother goose has chosen a rather busy spot to nest her eggs- in the parking lot of St Vital Centre on a boulevard. Countless cars buzz by and people have begun to bring it food.-Goose Challenge Day 06 - May 08, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • JOE.BRYKSA@FREEPRESS.MB.CA Local-(  Standup photo)-    A butterfly looks for nector on a lily Tuesday afternoon in Wolseley-JOE BRYKSA/WINNIPEG FREE PRESS- June 22, 2010

View More Gallery Photos

Poll

With the Canadian junior team off to such a great start, will you be watching the World junior hockey championship?

View Results

Ads by Google