Net sales for the first quarter of 2016 were $792.7 million, a decrease of $23.9 million, or 2.9 percent, as compared to $816.6 million in 2015. This decrease was the result of a decrease in net sales across all of our businesses due primarily to the pass through of lower raw material costs. Income from operations for the first quarter of 2016 was $57.4 million, a decrease of $9.7 million, or 14.5 percent, as compared to $67.1 million for the first quarter of 2015, and operating margin decreased to 7.2 percent from 8.2 percent for the same periods. The decrease in income from operations was the result of a decrease in income from operations in the metal and plastic container businesses, partially offset by an increase in income from operations in the closures business.
International Paper, the largest North American containerboard producer, has begun informing US customers of a $50/ton containerboard price increase for Oct. 1, a couple converters told RISI.
The increase would be the first on linerboard and medium in the US market since the last $50/ton price hike about three and a half years ago in the spring of 2013.