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Be the first with the news that moves the market- Packaging manufacturer, CCL Industries’s (TSX:CCL) sales declined 4 per cent in the last quarter of 2019
- This resulted in a 10 million dollar decrease in net profits compared to 2019
- CEO and President, Geoffrey Martin, attributes the decrease to a general global slow-down
- The company also expects the coranavius outbreak to hinder performance in the first quarter of 2020
- CCL Industries Inc (TSX:CCL) was down 9.62 per cent, with shares currently trading for C$51.60
Packaging manufacturer, CCL Industries (CCL) saw its sales figures decline in the last quarter of 2019, a report today reveals.
Sales in the fourth quarter were down 4 per cent compared to the same quarter last year. As a result, net earnings decreased by C$10 million to C$104.4 million.
Geoffrey T. Martin, P
“CCL Segment performance was mixed for the fourth quarter resulting in a modest decline for 2019,” he said.
Mr Martin attributes the decline to a general slow-down in global growth. For a company that provides packaging for a diverse range of industries, slow growth can hit vast swarth of sectors all at once.
CCL’s sales in the automotive industry, home and personal care products, aerosol, healthcare, agriculture, were all down across North America and Europe.
The company’s last quarter was also hindered by a C$13.3 million-dollar settlement against its subsidiary Checkpoint Systems.
Checkpoint was sued by shareholders for failing to correctly report financial statistics in 2015. This was before CCL acquired the company in 2016, but the settlement wasn’t finalise until last year.
Looking forward to 2020, the coronavirus break is predicted to have a negative but tempered impact on the company first quarter.
Although only 8 per cent on CCL’s sales revenue comes from China, it owns a number of plants and factories that could be affected if the virus continues to spread.
However, all of CCL’s China-based plants returned to operations after Luna New Year and have yet to be directly impacted.
The company hasn’t release any further outlook for 2020, however it did announce a 5.9 per cent increase to its annual annual dividend. The increase come into effect on March 17.
CCL Industries Inc (TSX:CCL) was down 9.62 per cent, with shares currently trading for C$51.60.
