Fourth quarter 2020 net income from continuing operations was $6.5 million compared to net income from continuing operations of $1.0 million in the fourth quarter of 2019. Net income from ongoing operations, which excludes special items and discontinued operations, was $9.7 million in the fourth quarter of 2020 and $9.9 million in the fourth quarter of 2019. Full year 2020 net loss from continuing operations was $16.8 million compared to net income from continuing operations of $58.5 million in 2019. Net income from ongoing operations was $50.8 million in 2020 and $47.6 million in 2019.
Pregis announces its new film converting facility in Elkhorn, Wisconsin, and new machinery assembly facility in Germantown, Wisconsin to meet growing e-commerce demands for its Sharp Packaging Systems® by Pregis brand of poly bagging solutions.
Production has been moved from nearby East Troy, doubling the number of converting lines. The facility converts multilayer coextruded polyethylene film (which has been blown at its Sussex, Wisconsin facility), into pre-opened bags supplied on a roll or in a box. The bags are used with Sharp Packaging bagging equipment at fulfillment centers to package and ship a broad variety of soft goods, pharma/nutraceuticals, and other non-fragile products. The high-output equipment only requires a small number of operators, enabling packers to social distance.
To support the increased demand for equipment, Pregis is also moving its equipment assembly operations from the current Sussex, Wisconsin facility to a new location in Germantown, Wisconsin in Q2. This move enables more efficient assembly layout, double the production space to support current and future growth, and allows additional space for further expansion of its poly converting capacity at the current Sussex facility.
“The shift to e-commerce from traditional retail outlets has been significantly amplified by the Covid-19 pandemic. To help meet demand from companies who use bagging equipment for their products, we have doubled the facility’s converting capability by installing additional lines,” said Mike Menz, division president. “Further, by relying on a three-level vertical integration approach, we are able to control the quality every step of the way. This offers fulfillment operations using our equipment the most reliable approach to trouble-free bagging.”
Pregis’ converting equipment has been self-manufactured helping to ensure it has the right capabilities to meet performance goals including output, sealing and puncture resistance. The objective is to deliver bags that perform seamlessly on the company’s bagging equipment. Also critical is the material’s ability to handle in-line printing capability including barcodes, graphics, and alphanumeric fonts.