Sonopress, a manufacturer of storage media that is part of Bertelsmann Marketing Services, has developed a revolutionary new form of vinyl LP that drastically reduces the environmental impact of the manufacturing process. The product is being launched in collaboration with Warner Music, a long-term client of Sonopress. This new vinyl is produced using recyclable polyethylene terephthalate (PET) as its base material, which can also be made from 100% recycled PET, rather than polyvinyl chloride (PVC). Pressing the discs requires neither natural gas nor steam, and a test operation saw energy savings of up to 85 percent compared to the traditional process. A first production line for the innovative LPs – dubbed Eco Record – was put into operation by Sonopress on Thursday at its plant in Gütersloh, Germany, following a series of tests last year.
Berry Global Group, Inc. (NYSE:BERY) today reported results for its fourth quarter and fiscal year 2017, referred to in the following as the September 2017 quarter and fiscal year 2017.
» Net income for the September 2017 quarter was $110 million ($0.81 per diluted share) compared to $77 million ($0.61 per diluted share) in the prior year quarter. Adjusted net income per diluted share in the September 2017 quarter was 19 percent higher at $0.87 compared to $0.73 in the prior year quarter.
» Net sales increased 16 percent over the prior year quarter to $1.9 billion. Operating income for the quarter increased by 32 percent to $199 million compared to $151 million in the prior year quarter. Operating EBITDA was $350 million (18.6 percent of net sales), an increase of 16 percent compared to the September 2016 quarter.
» Fiscal year 2017 net sales increased 9 percent over the prior fiscal year to $7.1 billion compared to $6.5 billion. Operating income for fiscal year 2017 increased by 26 percent to $732 million compared to $581 million in the prior fiscal year. Operating EBITDA was a fiscal year record at $1.33 billion (18.7 percent of net sales), an increase of 10 percent compared to $1.21 billion (18.6 percent of net sales) in fiscal year 2016.
» Cash flow from operations for fiscal 2017 was $975 million, and adjusted free cash flow for fiscal 2017 was a fiscal year record at $601 million.
» Expected fiscal year 2018 cash flow from operations of $965 million and adjusted free cash flow of $610 million.
“Berry had a solid fourth quarter and full fiscal year as we exceeded our guidance for adjusted free cash flow by $51 million. We achieved fiscal year records for net sales, operating EBITDA and adjusted free cash flow. During the year we met our top priority by reducing our leverage ratio to below 4, ending the fiscal year at 3.8 times net debt to adjusted EBITDA, the lowest in the Company’s history as a public company,” said Tom Salmon, CEO of Berry.
September 2017 Quarter Results
The net sales increase of $263 million from the prior year quarter is primarily attributed to acquisition net sales of $288 million, selling price increases of $9 million due to the pass through of higher resin prices, and an $11 million positive impact from foreign currency changes partially offset by a 2 percent base volume decline. The base volume decline in the quarter is primarily attributed to our decisions to rationalize certain lower margin products that we acquired from AEP in order to maximize earnings.
The operating income increase of $48 million from the prior year quarter is primarily attributed to acquisition operating income of $20 million, an $18 million improvement in our product mix and price/cost spread, $6 million decrease in SG&A and operating expenses, and a $4 million positive impact from currency translation. These improvements were partially offset a negative $4 million impact from base volume declines.
Fiscal Year 2017 Results
The net sales increase of $606 million is primarily attributed to acquisition net sales of $788 million and selling price increases of $60 million due to the pass through of higher resin prices, partially offset by a negative $136 million impact from a 2 percent base volume decline, $98 million from extra days in fiscal 2016, and a slightly negative impact from foreign currency changes.
The operating income increase of $151 million is primarily attributed to acquisition operating income of $62 million, a $36 million decrease in Avintiv integration and restructuring costs, a $35 million decrease in selling, general and administrative expense related to synergies and cost reductions, a $24 million improvement in our product mix and price/cost spread, a $16 million decrease in depreciation and amortization, and a slight improvement in productivity in manufacturing. These improvements were partially offset by a $20 million impact from the base volume decline and $10 million from extra days in fiscal 2016.
more detail at: http://ir.berryplastics.com/phoenix.zhtml?c=192781&p=irol-newsArticle&ID=2317441