-Alcore S.a.r.l. today announced it will raise prices by £40 per tonne on all recycled paperboard grades sold in the United Kingdom. The price change will be effective with shipments on or after August 15, 2016. "This price increase is in direct response to rising raw material costs," said Phil Woolley, director, Paper Europe. "We will continue to monitor market conditions to determine if additional pricing actions will be required in other European markets."
Consolidated sales for the three-month period ended June 25, 2016 , were $376 million, as compared to $365 million in the same quarter a year ago. The Company generated net earnings of $9 million or $0.09 per share in the June 2016 quarter compared to a net loss of $16 million or $0.16 per share in the June 2015 quarter. Operating earnings before depreciation, amortization and other items (adjusted EBITDA) was $26 million for the three-month period ended June 25, 2016 , as compared to adjusted EBITDA of $2 million a year ago and adjusted EBITDA of $36 million in the prior quarter. click Read More below for more details
Trading in-line with our expectations: Sales of £1,866m declined 7% in underlying terms primarily due to the expected declines in assessment revenues in the US and UK, which are weighted towards the first half of the year, but also the phasing of both gross sales and returns in North American Higher Education courseware. Revenues declined 11% at constant exchange rates, reflecting underlying revenue declines, the impact of a change in revenue model at Connections Education which now records revenue for services charged at cost on a net basis, and the disposal of PowerSchool. Headline sales decreased 7% with the benefit from the strength of the US Dollar against Sterling partly offset by the weakness of key emerging market currencies. Deferred revenues grew 5% in underlying terms. Adjusted operating profit of £15m is in-line with our expectations and down £39m when compared to H1 2015 reflecting lower revenues, incentive compensation accruals and dual IT running costs, partly offset by initial savings from our simplification programme and phasing of integration benefits at Penguin Random House.
Common shares outstanding plus shares underlying stock-based awards totaled 495 million on June 30, 2016, compared with 488 million one year ago. Net sales increased 31% to $30.4 billion in the second quarter, compared with $23.2 billion in second quarter 2015. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on net sales was $166 million. Operating income was $1.3 billion in the second quarter, compared with $464 million in second quarter 2015. Net income was $857 million in the second quarter, or $1.78 per diluted share, compared with $92 million, or $0.19 per diluted share, in second quarter 2015.
Second Quarter 2016 Summary • Reported sales increased 4% to $620 million • Changes in foreign currency exchange rates had a negative impact of 2% on the sales growth • Recently acquired Mega Airless contributed approximately $18 million or 3% of the sales growth and approximately $0.02 per share to reported earnings per share • Reported earnings per share rose to a quarterly record of $0.91 compared to $0.90 reported in the prior year • Operating margins were strong across each business segment