Net Sales Dip 7% for Berry Global in 2019 Fiscal Third Quarter
Net sales in Berry’s Engineered Materials segment decreased by $48 million to $639 million, compared to the 2018 third fiscal quarter.
Berry Global Group, Inc. recently reported net sales of $1.9 billion its third fiscal quarter 2019, a decrease of 7% compared to the corresponding 2018 quarter. The net sales decrease of $135 million from the prior year quarter is reportedly primarily attributed to an organic sales decrease of $158 million and a $16 million unfavorable impact from foreign currency changes, partially offset by acquisition net sales of $38 million. The organic sales decrease is primarily attributed to decreased selling prices of $94 million, due to the pass through of lower resin costs, and a 3% base volume decline.
“We completed our acquisition of RPC and are excited to welcome the new employees in this truly transformational combination,” said Tom Salmon, chairman and CEO. “We are eager to move forward together as a global plastic and recycled packaging industry leader with the industry’s most diversified and expansive manufacturing footprint.
“We continued to see strong volume growth of 3 percent in the quarter in our Consumer Packaging division along with contributions from our Laddawn acquisition, which were more than offset by base volume weakness in our Engineered Materials and Health, Hygiene, & Specialties divisions. Despite these quarterly results, we believe the fundamentals of the three businesses remain strong and we continue to better position ourselves for future growth in these attractive markets.”
Net sales in the Engineered Materials segment decreased by $48 million to $639 million, compared to the 2018 third fiscal quarter. The 7% decline was reportedly primarily attributed to an organic sales decrease of $85 million, partially offset by acquisition net sales of $38 million. The organic sales decline is primarily attributed to decreased selling prices of $48 million and a 5% volume decrease due to supply chain disruptions in prior quarters related to material qualifications, along with softness in industrial markets.
On July 1, 2019, Berry completed the acquisition of the entire outstanding share capital of RPC Group Plc for aggregate consideration of approximately $6.5 billion (including refinancing of RPC’s net debt), which is preliminary and subject to adjustment. In addition, on July 23, Berry completed the sale of its Seal for Life business within the Health, Hygiene & Specialties reporting segment for approximately $330 million, which is preliminary and subject to adjustment.
Additional details are available at www.berryglobal.com.