ardagh blames sluggish growth in us glass packaging on cash earnings slump - glass containers with silicone sleeve
Paul Coulson's cash income from Ardagh Group, a global metal and glass container company, fell by six PCs in the second quarter to the end of June, the reason is that efforts to improve the profitability of its US glass packaging are much more difficult than expected.
The decline in profit before interest, tax, depreciation and amortization, a measure of cash income of $392, is attributed to reduced quantities, increased freight charges and the cost of planned production downtime.
However, revenue increased by 6 PCs to $2.
In the past quarter, 3bn, or 1 pc, while earnings per share jumped 79 pc to $0.
$0 compared to 25.
14 in the same period last year.
In a statement on the New York Stock Exchange, Coulson said the result "reflects the good performance of three of our four divisions.
He said that this was offset by the reduction in North American Glass Packaging, and in North America, a number of initiatives to improve profitability are expected to bring benefits more gradually than previously expected.
"Ardagh is one of the customer groups of Heineken, L'Oreal and John West, and has recently repaid a hefty $440 fee
As it continues to focus on a $8 reduction, cost borrowing is made in advance.
The total loan amount is 3bn.
Coulson stressed that as the company enters the "second half of cash generation with higher seasonality", we remain focused on further reductionsleveraging.
"Since the group's initial public offering in the US in last March, shares in Ardagh have fallen by nearly 13 pc.
Due to continued weakness in the US beer market and adverse volatility in the foreign exchange market, the group lowered its earnings forecast at the end of 2017.