News

Archive for March, 1999

AEP INDUSTRIES INC. ANNOUNCES FISCAL FIRST QUARTER 1999 EARNINGS

Wednesday, March 17th, 1999

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 17, 1999, AEP Industries Inc. (NASDAQ-NMS:AEPI) today announced the results for its fiscal quarter ended January 31, 1999.

For the fiscal 1999 first quarter, net sales from continuing operations totaled $151,898,000 compared with $168,378,000 in the first quarter of fiscal 1998. Income from continuing operations during the first fiscal quarter of 1999 amounted to $1,835,000, or $0.25 per diluted share compared with $1,884,000 or $0.26 per diluted share for the first fiscal quarter of 1998. During the quarter, the Company reported a loss from discontinued operations of $1,205,000 or $0.17 per diluted share, and a provision for loss on disposal and for operating losses resulting from the sale of the Oriented Polypropylene (OPP) business of $16,396,000 or $2.25 per diluted share. Including the results from discontinued operations of the OPP business, the Company reported a net loss for the quarter of $15,766,000 or $2.17 per diluted share, compared with net income of $1,254,000 or $0.17 per diluted share in the fiscal 1998 first quarter.

Commenting on the results for the quarter, Chairman and Chief Executive Officer Brendan Barba stated: “Market conditions continue to be difficult with lower average selling prices due to continued economic weakness in our European and Southeast Asian market places. However, management continues to focus its efforts on being the low cost provider in all of the markets it operates, and we have begun to see benefits from some of our recent capital.”

Management continues to see strength in the North America businesses, and the divestiture of the OPP business will allow management to focus on businesses that are currently more profitable. The Company has completed the installation of its Pennsylvania barrier film lines production facilities with approximately 21 million pounds in capacity, and anticipates substantial penetration of the market by the second half of fiscal 1999. Volume from continuing operations world-wide increased by approximately 2.0% over the same period a year ago. European businesses achieved a 7.0% increase in volume from the prior year, resulting from of the completion of the major Dutch Flexibles expansion project in fiscal 1998, which helped offset weak volume due to the Eastern European economic crisis. Conversely, the Southeast Asia operations experienced a volume decrease of approximately 4.0% compared to the year ago period, due to shut down and consolidation of certain plant facilities in Australia and the general economic pressures in the region.

Despite difficult European and Southeast Asia market conditions, the gross profit as a percentage of net sales for the first fiscal quarter of 1999 increased to 23.0% compared with 22.3% in the first quarter of fiscal 1998. This increase was primarily a result of improved profit margins from reduced raw materials costs and product mix in the Company’s North America marketplace.

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.

AEP INDUSTRIES INC. TO EXIT ITS ORIENTED POLYPROPYLENE BUSINESS

Friday, March 5th, 1999

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 5, 1999, AEP Industries Inc. (NASDAQ-NMS:AEPI) today announced today that it is exiting the Oriented Polypropylene business and has entered into an agreement to sell selected assets associated with that business to Applied Extrusion Technologies (NASDAQ-NMS:AETC) for $13.0 million. The Company estimates that over time, it will receive (net of expenses) an additional $8.0 million resulting from winding down this business. As a result of exiting the business the Company estimates it will incur a loss of $27.0 million. This transaction is expected to close by April 15, 1999.

Commenting on the divestiture, Chairman and Chief Executive Officer Brendan Barba stated, “The competitive landscape of this market has changed dramatically over the last few years, making it difficult for niche players to maintain acceptable levels of profitability. Additionally, due to industry wide over capacity, we do not anticipate that this business will return to its traditional levels of profitability in the foreseeable future. We believe that exiting this business will allow management to focus on enhancing its market leadership positions in businesses where we are the low cost producer and where our value added factor is indisputable.”

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.