Plastic packaging films maker
AEP Industries Inc
) saw a solid jump in its fiscal 2012 (ended Oct 31) profit,
aided by higher volume and pricing and a positive impact from the
acquisition of Webster Industries.
The company's profit for the year zoomed 87% year over year to
$23.2 million. Earnings per share of $4.16 nearly doubled from
$2.09 recorded a year ago. That, however, fell shy of the Zacks
Consensus Estimate of $4.40.
Net sales for the year jumped 18% year over year to $1,152.5
million, driven by a 5% increase in sales volumes and a 1%
increase in average selling prices. Webster acquisition
contributed $114.3 million. Sales, however, trailed the Zacks
Consensus Estimate of $1,154 million.
Gross profit surged 42% to $182.7 million, primarily driven by
increased sales volumes and improved material margins. Gross
margin expanded to 15.9% from 13.2% in fiscal 2011.
Operating expenses climbed 23% year over year to $126.8 million
due to higher spending by Webster, a rise in selling and delivery
costs stemming from an increase in volumes sold, an increase in
share-based compensation expenses and higher provisions
associated with employee cash performance incentives.
AEP Industries feels that Webster acquisition coupled with the
recent purchase of films business from Transco Plastic Industries
will boost its product offerings and enhance its manufacturing
capabilities. Despite the uncertain economic environment, the
company is hopeful to continue its strong performance in fiscal
AEP Industries is a manufacturer of plastic packaging products in
North America. The company makes and distributes an array of
polyethylene, polyvinyl chloride and polypropylene flexible
packaging products for consumer, industrial and agricultural
applications. AEP Industries has manufacturing facilities in the
U.S. and Canada and markets its products directly as well as
through distributors to end-users.
Bemis Company, Inc.
), which also makes packaging films, will report its fourth
quarter and full-year 2012 results on Jan 31.
AEP Industries currently retains a short-term Zacks Rank #3
Other companies in the containers and packaging industry with
favorable Zacks Rank are
Graphic Packaging Holding
) with a Zacks Rank #1 (Strong Buy),
) with a Zacks Rank #2 (Buy).
AEP INDS (AEPI): Free Stock Analysis Report
BEMIS (BMS): Free Stock Analysis Report
GRAPHIC PKG HLD (GPK): Free Stock Analysis
UFP TECH INC (UFPT): Free Stock Analysis
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