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Archive for January, 2001

AEP INDUSTRIES REPORTS FISCAL 2000 FOURTH QUARTER AND YEAR-END RESULTS

Monday, January 8th, 2001

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

FOR IMMEDIATE RELEASE

South Hackensack, NJ, January 8, 2001 -AEP Industries Inc. (Nasdaq: AEPI, the “Company”) today reported financial results for the fiscal 2000 fourth quarter and year ended October 31, 2000.

Net sales for the three months ended October 31, 2000 were $175,176,000 compared with $179,614,000 during the same quarter a year earlier. The slight decrease in sales for the quarter was primarily due to continued softness in our European and Asian markets. For fiscal year 2000, net sales were $701,321,000 compared with sales of $670,052,000 for the prior twelve-month period. The 5.0 percent increase in sales resulted from a 10.2 percent increase in North American sales, partially offset by decreased sales in Europe and Asia.

Gross profit for the fiscal 2000 fourth quarter increased by $3,558,000, or 12 percent, to $33,018,000, reflecting a slight improvement in material margins. For the fiscal year 2000, gross profit decreased to $123,509,000 from $142,005,000 in the prior fiscal year. This decrease is attributed to the Company’s inability to pass through to its customers increases in raw material costs, which it had incurred during the first nine months of fiscal 2000.

The Company reported a net loss of $170,000, or $0.03 per share (diluted), for the fourth quarter of fiscal 2000 compared with a net loss of $3,046,000, or $0.41 per share (diluted) for the same quarter last year. The net loss for the year was $4,049,000, or $0.54 per share (diluted), compared with a net loss of $14,498,000, or $1.99 per share (diluted), recorded a year ago. The 1999 loss included an $18,971,000 charge resulting from the sale of the Oriented Polypropylene (OPP) business.

“AEP experienced several difficult quarters during fiscal 2000 and the fourth quarter reflects a first meaningful step towards the restoration of acceptable levels of financial performance for the Company. We are pleased to see a slight improvement in material margins and gross profit per pound in this most recent quarter. We believe we have seen the top of the resin price cycle, and are now experiencing some benefits of stabilizing raw material prices,” commented Brendan Barba, Chairman and Chief Executive Officer of AEP. “We are still facing a difficult market place, and expect to continue to face a tough resin pricing environment in 2001. Our commitment is to continue to provide a superior product and superior service while aggressively pursuing operating expense reduction. We will strive to continue to deliver improved financial results,” concluded Barba.

The Company invites all interested parties to listen to its fourth quarter conference call live over the Internet at www.aepinc.com or www.streetfusion.com on Tuesday, January 9, 2001 at 10:00 a.m. EDT, an archived version of the call will be made available after the call is concluded.

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 from the Company.