Plastic packaging films maker AEP Industries Inc. (AEPI), on Monday, reported a loss for the third quarter compared to a profit last year, hurt by lower gross profit due to cumulative increases in LIFO reserves and margin erosion on lagging increases in selling prices. Sales increased 19% primarily due to increases in average selling prices, driven by higher resin costs.
Third quarter net loss for South Hackensack, New Jersey-based AEP Industries was $4.77 million or $0.71 per share, compared to net income of $4.78 million or $0.63 per share in the same quarter last year.
Loss from continuing operations was $4.73 million or $0.70 per share, compared to earnings of $3.67 million or $0.49 per share in the year-earlier quarter.
Gross profit for the quarter plunged to $18.1 million from $32.4 million due to a cumulative increase in LIFO reserves of $8.8 million between the periods combined with current quarter margin erosion, resulting from lagging increases in selling prices.
Sales for the quarter rose 19% to $207.02 million from $173.81 million in the prior-year quarter. Sales increased primarily due to increases in average selling prices, driven by higher resin costs in the current period in comparison to the prior-year period, combined with increases in sales volume.
Operating loss was $3.75 million, compared to operating income of $9.29 million in the year-earlier quarter. Operating expenses decreased to $21.91 million from $23.13 million in the prior-year quarter.
For the nine-month period, net income slumped to $2.73 million or $0.40 per share from $21.62 million or $2.75 per share in the prior-year period. Sales for the period increased 16% to $561.92 million from $483.69 million in the year-ago period.
On April 4, 2008, AEP Industries completed the sale of AEP Netherlands for about $26.8 million, and on August 9, 2008 the company entered into an asset purchase agreement to purchase the stretch films, custom films and institutional products divisions of Atlantis Plastics, Inc. (ATPL.PK) and certain of its subsidiaries for $87.0 million in cash plus the assumption of certain liabilities.
AEPI is currently trading at $17.52, up $0.31 or 1.80%, on a volume of 400 shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.