News

Archive for March, 1998

AEP INDUSTRIES INC. ACHIEVES ISO 9002 REGISTRATION AT NORTH CAROLINA PLANT

Thursday, March 19th, 1998

CONTACT: Paul Feeney
Executive Vice President and
Chief Financial Officer
(201) 807-2330
e-mail: feeneyp@aepinc.com

FOR IMMEDIATE RELEASE

SOUTH HACKENSACK, N.J., March 19, 1998 – AEP Industries Inc. (Nasdaq:AEPI) today announced that its facility in Matthews, North Carolina, achieved ISO 9002 registration after passing an extensive independent audit. This ISO registration certifies that the Company’s quality systems and procedures meet world-class standards.

Bill Harkey, Director of Manufacturing at AEP, commented, “Achieving ISO registration at our Matthews, NC facility is another clear demonstration of AEP’s continuing commitment to quality. We are ISO certified at a number of AEP facilities and are currently pursuing registration at our remaining facilities. We believe the steps necessary to secure ISO certification strengthen our competitive position as a supplier in our worldwide markets.”

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company has operations in 11 countries throughout North America, Europe and Asia/Pacific.

Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Privates Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.

AEP INDUSTRIES INC. REPORTS 1998 FIRST QUARTER RESULTS

Monday, March 9th, 1998

CONTACT: Paul Feeney
Executive Vice President and
Chief Financial Officer
(201) 807-2330
e-mail: feeneyp@aepinc.com

FOR IMMEDIATE RELEASE

SOUTH HACKENSACK, N.J., March 9, 1998 – AEP Industries Inc. (Nasdaq:AEPI) today announced results for its first quarter ended January 31, 1998.

Net sales for the 1998 first quarter were $178,292,000 compared to $181,686,000 in the first quarter of 1997. In the first quarter of 1998, income from continuing operations was $1,857,000 or $0.25 per diluted share. During the period, the Company recorded a loss from discontinued operations for its Rigids business of $603,000 or $0.08 per diluted share. Net income for the first quarter of 1998 after the loss from discontinued operations was $1,254,000 or $0.17 per diluted share compared to $4,056,000 or $0.54 per diluted share in the prior year quarter.

The 1998 first quarter results reflect improved performance in the Company’s North American stretch and industrial film businesses, offset by difficult market conditions in Europe and Asia Pacific. The North American stretch film business continued to benefit from higher volumes and favorable raw material prices, partially offset by lower average selling prices. In spite of higher volumes, performance in select European and Asian/Pacific markets was impacted by increased raw material prices and a competitive pricing environment.

Gross profit as a percentage of net sales for the 1998 first quarter was 22.0% compared to 21.7% in the year-ago quarter and 21.9% in the fourth quarter of last year reflecting these factors as well as increased capacity utilization in North America, Europe and Asia.

During the period, warehouse and delivery costs were higher than the Company considers to be appropriate. The Company expects these costs will begin to decrease, on a per unit basis, upon installation of new delivery systems expected to commence in March 1998. Interest expense increased in the fiscal 1998 first quarter to $8,151,000 compared with $6,578,000 in the year-ago period reflecting higher interest rates resulting from the issuance of the Company’s 9.875% Senior Subordinated Notes in November 1997.

Brendan Barba, Chairman and Chief Executive Officer of AEP, commented: “In the first quarter of 1998, our efforts to increase volume and production efficiency within the domestic stretch film market yielded positive results despite a continued competitive climate. Our new domestic distribution systems are an important next step in improving the efficiency of our U.S. operations. Further cost reduction and production efficiencies are also a top priority in Europe and Asia/Pacific as we contend with increasing competition and difficult economic conditions in the Asia/Pacific region. On balance, we believe that we are on track to sustain and build upon the margin improvement we achieved in the first quarter throughout the remainder of fiscal 1998.”

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company has operations in 11 countries throughout North America, Europe and Asia/Pacific.

Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company.