Business

Portola Packaging, the US plastic packaging manufacturer, has reported an "extremely challenging" third quarter of the 2008 financial year due to increased resin and energy costs.

Portola recorded sales of $75.1m (£37.5m) for the three months to 31 May, an increase of 9.3% compared to the same period last year.

Quarterly operating income, however, fell by 47% to $1.8m due to the delay in passing on higher resin prices to customers, high utility and labour costs, as well as bad debt expenses.

The firm is looking to reduce costs and improve margins through the closure of a manufacturing facility in New York. Production will be shifted to other sites in the US.

Portola produces tamper-evident closures and plastic bottles from 13 plants worldwide, including a site in Doncaster.