U.S. Packaging net sales of $672.3 million for the third quarter of 2017 represented an increase of 2.2 percent compared to the same period of 2016. Compared to the prior third quarter, unit volumes were up approximately two percent. U.S. Packaging operating profit decreased to $99.6 million in the third quarter of 2017, or 14.8 percent of net sales, compared to $100.8 million, or 15.3 percent of net sales, in 2016. Compared to the prior year, profits were impacted by previously-negotiated contractual selling price reductions on select products, partially offset by manufacturing efficiencies and the benefits of increased unit volumes. Global Packaging net sales of $362.8 million for the third quarter of 2017 represented a decrease of 1.8 percent compared to the same period of 2016. Currency translation increased net sales by 0.5 percent. Organic sales decline of 2.3 percent reflects unfavorable mix of products sold, partially offset by sales price increases. Compared to the prior third quarter, Global Packaging unit volumes were relatively flat, comprised of weak volumes in the Company’s Latin American business, as anticipated, and offset by net volume growth in the remaining regions of the Global Packaging Segment. Global Packaging operating profit for the third quarter was $24.6 million, compared to $36.2 million for the same period in 2016. Compared to the prior year, lower profits in Global Packaging were driven primarily by the impact of the challenging economic environment in Brazil. Click Read More below for additional information.
International Paper (NYSE: IP) is committed to improving food safety throughout the supply chain. The Company announced their Kenton, Ohio and Visalia, California facilities achieved food safety certification by exceeding the standards of the benchmarking procedures as dictated by the Global Food Safety Initiative (GFSI). The two sites join IP’s Shelbyville, Ill. Facility that was certified in March, 2016. All three sites achieved scores above 99%.
Earlier this year, International Paper set the goal of exceeding the GFSI standards at 100% of the company’s U.S. Foodservice Facilities before year-end and that has been done.
GFSI is a non-profit, international benchmarking organization created to standardize food safety rules and has been rapidly recognized as the ‘gold standard’ for international food safety. These global specifications promoted by GFSI address food, packaging, packaging materials, storage and distribution. Certification is a very stringent and demanding process that requires a facility to organize its Quality Management System (QMS) to address components in the manufacturing process such as management responsibility, hazard analysis, resource management and document control of procedures, policies and records.
“Safety as a whole is deep-seated part of our everyday operations and our number one priority,” stated Jon Ernst, Vice-President and General Manager of International Paper’s Foodservice Business. “We are proactively doing our part to ensure we have the systems in place to eliminate food safety risks in the packaging arena and continue to provide a top quality product.”
Requests for GFSI-benchmarked audits have been quickly growing. Ernst says that many large retailers and foodservice industry brands are calling for this type of certification as a pre-requisite to doing business. “International Paper continuously strives to exceed our commitment of excellence to our customers. As the needs of our customers continue to grow, we are well positioned to meet those needs.”