Graphic Packaging Profit Rises, But Misses View

(RTTNews) - Graphic Packaging Holding Co. (GPK) Tuesday reported an increase in profit for the third quarter, after a significant drop in operating costs masked effects of lower sales. However, shares of the packaging maker fell seven percent after its earnings and revenues for the quarter fell short of Wall Street estimates.

Atlanta, Georgia-based Graphic Packaging's third-quarter profit rose to $53.0 million or $0.16 per share from $44.5 million or $0.13 per share a year earlier.

Excluding special items, earnings for the quarter rose to $57.5 million or $0.17 per share from $42.9 million or $0.12 per share last year. On average, eight analysts polled by Thomson-Reuters estimated earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude one-time items.

Graphic Packaging, which supplies cartons to companies like Kraft Foods and General Mills, said sales dropped 9.7 percent to $1.05 billion from last year's $1.16 billion. Excluding $162.3 million of sales in the prior year period from divested businesses, sales increased 4.9 percent. Analysts had a consensus revenue estimate of $1.08 billion for the quarter.

Sales' costs dropped to $847.6 million from $982.3 million a year ago, while selling, general and administrative expenses declined to $83.6 million from $93.8 million a year ago.

GPK is currently trading at $10.92, down $0.78 or 6.67%, on the NYSE.