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Archive for March, 2000

AEP INDUSTRIES REPORTS FISCAL 2000 FIRST QUARTER

Tuesday, March 14th, 2000

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

FOR IMMEDIATE RELEASE

South Hackensack, NJ, March 14, 2000 -AEP Industries Inc. (Nasdaq: AEPI, the “Company”) today reported financial results for the fiscal quarter ended January 31, 2000.

Net sales for the fiscal 2000 first quarter were $163,846,000, a 7.9 percent increase over the $151,898,000 reported in the prior-year period. The increase in net sales primarily represents a partial pass through of increased resin costs incurred by the Company.

The Company reported a loss from continuing operations for the quarter of $1,153,000, or $0.15 per share (diluted), compared with income from continuing operations of $1,835,000, or $0.25 per share (diluted), last year.

The net loss for the quarter ended January 31, 2000 was $1,153,000, or $0.15 per share (diluted), compared with a net loss of $15,766,000, or $2.17 per share (diluted), in the same period last year. The 1999 results included a loss from discontinued operations for the first quarter of $17,601,000, or $2.42 per share (diluted), reflecting the sale of the Company’s Oriented Polypropylene (OPP) business.

Volume increased in both the European and Asia Pacific regions, with increases of three percent and four percent, respectively. In North America, volume decreased less than one percent.

“An extremely competitive marketplace, combined with uncertainty of pricing in the resin market, have resulted in the Company’s North American business failing to attain traditional material margin levels,” said Brendan Barba, Chairman and Chief Executive Officer of AEP. “The price of oil has continued to rise and additional resin price increases have been announced. The Company will redouble its efforts to pass through these increases to its customers.”

“On the operations side, we will continue to accelerate our efforts to improve overall performance by leveraging the strategic initiatives we completed in 1999 and maintaining our focus on reducing expenses,” commented Barba. “We fully expect to achieve improved performance in the coming year and we are committed to returning to profitability in 2000,” Barba concluded.

AEP Industries Inc. manufacturers, 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 from the Company.