Pactiv profit inches higher, helped by Prairie purchase

Food packager Pactiv Corp. reported late Monday a 1% increase in second-quarter profit, boosted by its $1 billion acquisition of Prairie Packaging.

For the three months ended June 30, Pactiv (PTV) said net income rose to $70 million, or 53 cents a share, from $69 million, or 49 cents a share, a year ago. Earnings from continuing operations totaled 52 cents a share.

Sales for the quarter rose 10% to $828 million, helped by its acquisition of Prairie Packaging.

The results outpaced the 48 cents-per-share expected by analysts polled by Thomson Financial. Sales were also better than the $787 million Wall Street had been looking for.

The Lake Forest, Ill., company, whose consumer products span from Hefty plastic bags to disposable dinnerware, predicted sales would rise 11% to 13% for the year, adding that it expects a profit of 41 cents to 45 cents a share in the third quarter and $1.82 a share to $1.92 for the full year, including a 2- to 4-cent per share gain from its Prairie Packaging purchase.

Pactiv closed the Prairie Packaging deal in June. At the time, Pactiv said it expected the maker of disposable tableware products to post $500 million in sales this year.

Analysts forecast Pactiv will make 45 cents in the third quarter and $1.85 for the year.

Pactiv shares rose 1.9% ahead of the report to close at $32.07. The company's share price is down 11.8% so far this year.
Source: lexisnexis