Net earnings from continuing operations for 2007 were US$93.4 million, up 44 percent from US$64.9 million earned in 2006. The board of directors has declared a 17 percent increase in the dividend.
Donald G. Lang, vice chairman and CEO, says, “We continue to be pleased by the performance of our business in the fourth quarter, completing another record year in operational earnings for CCL. Our earnings per share from continuing operations, excluding restructuring and other items and favorable tax adjustments in the fourth quarter, were 6 percent higher than last year’s strong fourth quarter despite very unfavorable currency effects. Our strategy to more than replace the earnings from our disposed ColepCCL joint venture with organic and acquisition growth in our specialty packaging core is well under way as evidenced by our recent acquisitions and our aggressive capital spending program.
“The Label Division continues to perform well despite a weakening US economy as we expand into new product lines and markets, invest in high end equipment and plants globally, and complete accretive acquisitions such as CD Design and our joint venture in Russia. The Container Division was able to improve profitability in 2007 after experiencing difficult margin challenges created by stubbornly high aluminum costs earlier in the year. The Tube Division suffered through a weak last half of 2007 as demand for its high end personal care tubes softened as the economy dipped.”
The company’s outlook for 2008 is positive, Lang added, “Although the US economy is a concern, our financial results will be impacted by the strong Canadian dollar compared to a year ago during at least the first half of the year. We are in a very satisfactory financial position as our financial leverage is conservative.”
At the company’s annual meeting on May 8, Lang will become executive chairman of CCL Industries. President Geoffrey Martin will assume the role of chief executive officer.