News

Global plastic packaging company Graham Packaging reported an increase in net sales for the second quarter as the company continues to pass on increasing resin costs to its customers.

The US firm increased net profit to $28m (£14m) for the quarter ended 30 June 2008, compared to $5m for the same period the previous year.

Sales for the quarter rose 6% to $688m.

Graham Packaging chairman and chief executive Warren Knowlton said the company had experienced a "solid quarter", despite difficult economic trading conditions.

Knowlton said the plan going forward is to: "sustain our focus on matching capital expenditures with returns, addressing profitable versus unprofitable growth, and further reducing our cost structure."

Graham Packaging produces more than 20 billion container units annually across 83 plants in North America, Europe and South America.

The company's customers span the beverage, household goods, personal care and automotive lubricant markets.

Meanwhile, Reuters has reported that Graham Packaging plans to double its operations in South America over the next few years and enter the Asian markets through a joint venture.