Increased capacity brings increased revenue
Blown film extruder Imaflex Inc. (Montreal) doubled the net income from its extrusion operations in the first quart...
May 16, 2003 by Canadian Plastics
Blown film extruder Imaflex Inc. (Montreal) doubled the net income from its extrusion operations in the first quarter of this year compared with last, by adding a new extrusion line and increasing selling prices in line with rising costs.
Imaflex sales for the first quarter were $9.7 million, an increase of 44% from the previous year. Net income was $565,000.
The company’s overall financial results for the quarter ended March 31, 2003, were brought down somewhat by net losses at the Canslit Inc. subsidiary, which operates a metallizing facility in Victoriaville, QC. Canslit incurred a net loss of $118,000 for the period, compared with a loss of $154,000 for the same period in 2002.
Imaflex installed its 11th film line, a Davis-Standard system, in the first half of 2002. A company statement attributes the greater sales to this increased capacity and higher selling prices.
“In spite of the difficult economic climate and raw material cost pressures, Imaflex, by the optimum utilization of its expanded extrusion capacity was able to increase its sales volume and achieve excellent profitability through higher sales activity in the United States market.”
Imaflex produces LDPE, LLDPE, EVA and metallocene-based films for general converting applications.
Regarding Canslit, Imaflex corporate controller Roberto Longo says there has been instability in polyester pricing for the last few months which has hurt sales, plus the higher value of the Canadian dollar has had a negative effect on U.S. sales. Despite the difficulties, Longo says, “We believe there is a market out there.” He notes that Canslit is a smaller, more nimble operation than some of its American competitors.
Canslit’s primary market is metallized polyester for coffee pouches.