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Archive for March, 2001

AEP INDUSTRIES REPORTS PROFITABLE FISCAL 2001 FIRST QUARTER

Monday, March 12th, 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, March 12, 2001 – AEP Industries Inc. (Nasdaq: AEPI, the “Company”) today reported financial results for the fiscal first quarter ended January 31, 2001.

Net sales for the fiscal 2001 first quarter were $156,499,000 down 4.5 percent from $163,846,000 in the same period last year. The decrease in net sales resulted from a 7.0 percent decline in average selling prices, offset by a 2.7 percent increase in volume. The decrease in average selling prices is consistent with a worldwide reduction in resin costs between the periods.

Gross margins for the 2001 first quarter improved to 20.3 percent compared with 17.3 percent for the first quarter last year. Continued control of manufacturing costs combined with a slight reduction in selling prices and higher utilization rates, particularly in North America, were substantial contributors to the improved gross margins. The gross margins improvement was slightly offset by rising energy prices.

Business conditions in North America have improved slightly from the first quarter of the prior year. The Company’s operations in Europe and Asia Pacific have not substantially contributed to the improvement in gross margins as these markets continue to be very competitive.

Net income for first three months of fiscal 2001 was $160,000, or $0.02 per share (diluted), compared with a net loss of $1,153,000, or $0.15 per share (diluted), for the year ago period.

“We are pleased not only with the improvement in our financial results for the first quarter compared with the prior year, but with our strategic accomplishments as well. Our continued focus on efficiencies in our operating structure helped bring the gross margins back toward historic levels,” said Brendan Barba, Chairman and Chief Executive Officer of AEP. “We enter the second quarter of fiscal 2001 in a much stronger position than a year ago. Our people, our systems and our processes are much more efficient. While we are pleased with our first quarter performance, we are hesitant to be overly optimistic because of the impact of the previously announced resin price increase, increasing energy costs and a slowing economy could have on our future results,” Barba concluded.

The Company invites all interested parties to listen to its first quarter conference call live over the Internet at www.aepinc.com or www.streetfusion.com on Tuesday, March 13, 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.