CEO: Bway Holdings to raise prices
Bway Holding Co. (NYSE: BWY) CEO Ken Roessler said the company is raising prices on its metal packaging products in order to battle the rising cost of metal. The chief executive made the comments during a morning conference call.
“We believe that the challenges currently faced by our metals packaging business are short-term,” Roessler said. “We have announced a sales price increase effective Jan. 1, 2008 and concurrently we are rebalancing our steel supply base.”
Before the opening, Bway reported fourth-quarter net sales of $252.8 million, up 2% from $249 million a year earlier. Analysts expected $248.3 million in net sales.
“We are very encouraged by the results of our plastic packaging business and the positive momentum we generated and we are pleased with the success of our recent Canadian acquisitions and by our free cash flow results,” Roessler said.
Roessler said the downturn in the housing market hurt the firm’s quarterly results.
“The housing market may be out of our control but the way we operate our manufacturing system is not and we are taking appropriate actions,” he said.
The company posted a quarterly loss of $1.4 million, or $0.06 per share, up 59% from a loss of $3.4 million, or $0.17 per share, during the period of 2006. Wall Street projected earnings of $0.13 per share.
For fiscal 2007 ended Sept. 30, Bway swung to a net loss of $3.1 million, or $0.15 per share, from a profit of $8.9 million, or $0.35 per share, during fiscal 2007. The 2007 results included a pre-tax charge of $29.7 million, or $0.83 per share, in public offering-related expenses.
Bway’s fiscal year net sales rose to $959 million, up 4% from $918.5 million during 2006.
The firm said it expects a loss in the range of $0.16 to $0.22 per share in the first quarter 2008, which ends Dec. 30. For fiscal 2008, Bway said it projects earnings in the range of $0.68 to $0.78 per share.
In midday trading, BWY shares are down 6.52%, or $0.64, at $9.17. Over the last 52 weeks, shares have ranged from $7.01 to $15.75.
