UPDATE 1-Crown Cork & Seal posts small Q2 profit
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NEW YORK, July 18 (Reuters) - Crown Cork & Seal Co. Inc.
, the leading supplier of consumer packaging products,
on Wednesday reported net income of $5 million for the
second-quarter even as it continued to battle depressed prices
in most of its businesses.
The Philadelphia-based company, which also makes beverage
and food cans, plastic bottles and specialty closures, said it
earned 4 cents a share in the quarter which ended June 30.
That compares with a loss of $4 million, or 3 cents a share
the company posted in the year-ago period. Its year-ago
results, however, include a 53 cent provision for restructuring
and jobs cuts. Without that, the company posted income of 50
cents a share during that period.
The beleaguered packaging giant, which has been plagued for
months by difficult market conditions and fears of asbestos
liabilities, said net sales fell almost 3 percent to $1.9
billion, while it was hit by what Chairman and CEO John Conway
described as "unsustainably low pricing in most of our
markets."
Along with downward pricing pressures, the company has been
hurt by falling pension income and higher borrowing costs.
Wall Street analysts expected the company to earn between 4
cents and 5 cents a share in the quarter, with a consensus of 5
cents a share, according to tracking firm Thomson
Financial/First Cal.
Shares in Crown Cork fell about 7.4 percent in the quarter,
under-performing the S&P 500 Index which rose 5.52 percent.
They closed up 3 cents at $2.95 Wednesday on the New York Stock
Exchange.
REUTERS
Rtr 00:25 07-19-01 |
