According to the official company statement, financial comparisons to the prior year’s results “have been positively affected by the significant appreciation of the euro and most other currencies relative to the Canadian dollar offset by further depreciation of the US dollar. Sales increased for the quarter by 19 percent due to organic growth and an acquisition, while foreign exchange net of a disposition added a further 1 percent.”
“We are very satisfied with another record quarterly earnings performance in CCL’s second quarter,” says Donald G. Lang, vice chairman and CEO. “We are pleased that our second quarter earnings per share were 65 percent ahead of the second quarter last year and, excluding restructuring and other items and favorable tax benefits, we’re an exceptional 37 percent ahead of last year’s comparable period. Our global customers are generally enjoying good sales growth in most of the world and are expanding rapidly into new geographies. Our strategy to expand with them internationally has been rewarding and we intend to continue to grow with them wherever we can add value.
“The Label Division continues to show robust growth in sales and increased profitability. The conversion in the beer industry from paper labels to pressure sensitive labels has given rise to a significant new global business base for the company. We continue to be extremely pleased with the operating performance of the former Illinois Tool Works business specializing in shrink and stretch sleeves, acquired in January. The Container Division has also seen an increase in sales and improved profitability relative to the last half of 2006, as it continues to adjust to higher aluminum commodity costs. The Tube Division has experienced sluggish volume and a reduction in income compared to last year’s level due to softer personal care markets and reduced consumer spending in the United States. Our ColepCCL joint venture continues to enjoy strong sales and improved operating income in the favorable European economic environment.”
CCL Industries Inc. manufactures pressure sensitive, shrink sleeve and in-mold labels, aluminum containers and plastic tubes for global companies in the home and personal care, healthcare and specialty food and beverage sectors. The company employs approximately 5,000 people and operates 49 production facilities in North America, Europe, Latin America, and Asia. CCL’s joint venture, ColepCCL, operates five plants in Europe and employs approximately 2,000 people.