Pactiv shows profit, tops analysts' estimates

Pactiv Corp., the maker of Hefty garbage bags, rose in late trading after reporting first-quarter earnings that exceeded analysts' estimates and raising its full- year forecast.

Pactiv jumped $2.51, or 15 percent, to $19.65 at 5:55 p.m. after the close of regular trading on the New York Stock Exchange. The shares of Lake Forest, Illinois-based Pactiv had dropped 33 percent this year through today's close.

First-quarter net income more than doubled to $91 million, or 69 cents a share, as costs for plastic resins fell from a year ago and demand declined less than anticipated, Pactiv said today in a statement. The average estimate of eight analysts surveyed by Bloomberg was 46 cents a share.

"We benefited from lower raw-material costs, as well as lower logistics costs and improved productivity," Chief Executive Officer Richard Wambold said in the statement. "Our volume decline was mitigated by continued strong growth in cups and cutlery products."

Profit doubled in the Hefty consumer products and foodservice/food packaging units.

Full-year earnings per share will be $2.15 to $2.25, higher than a prior forecast of $1.80 to $2. Nine analysts in the survey had estimated $1.89, on average.

Second-quarter profit will be 54 cents to 58 cents a share, the company said, topping the 51-cent average estimate in the analyst survey.