10 June 2010 17:40 [Source: ICIS news]
HOUSTON (ICIS news)--US plastic packaging manufacturer AEP Industries said on Thursday that resin price decreases of 4-6 cents/lb ($88-132/tonne, €73-110/tonne) in May were likely to be extended in June and beyond.
“Most of the resin relief is due to the resin export market going away, and that’s where we expect the market to be the next six months,” said chief executive Brendan Barba, speaking on a conference call with investors.
He said prices could be stepped down over several months, or producers could opt to bring the market down in one big month and then hold prices from there.
Despite continued concerns about the economy, AEP officials expected to see 3-5% volume growth in its 2010 fiscal year.
AEP sold 211m lb of finished goods in its first fiscal quarter, which ended 30 April, with a gross profit of 12 cents/lb.
The company reported a net loss of $1.5m for the three months ended 30 April, compared with a net income of $11.6m during the same period a year earlier.
($1 = €0.83)
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