Pregis sees 11 percent 2Q sales gain

DEERFIELD — Pregis Corporation, an international manufacturer, marketer, and supplier of protective packaging products and specialty packaging solutions, today announced its second quarter sales rose 11.2 percent over the same period last year.

The company generated net sales of $242.2 million, 11.2 percent over $217.8 million in the second quarter of 2010. The increase was driven primarily by the impact of selling price increases and favorable foreign currency translation. Excluding the impact of favorable foreign currency translation, net sales for the three months ended June 30 increased 4.3 percent compared to the same period in 2010.

Ross margin as a percent of net sales was flat year-over-year at 21.3 percent.  Year-over-year cost increases of over $9 million in key raw materials were offset by the impact of selling price increases implemented during the past twelve months.   The majority of the products we sell are plastic-resin based, and therefore our operations are highly sensitive to fluctuations in the costs of plastic resins.

“I am very pleased with our strong second quarter performance,” said Glenn Fischer, president and chief executive officer, ”Our second quarter sales volumes were essentially flat on a year-over-year basis, with continued strong increases in our key growth areas — inflatable systems and foam-in-place — being offset by softness in our core products.

“By continuing to reduce our cost structure, as well as offsetting significant resin cost increases with the impact of our selling price initiatives over the past twelve months,” he added.