Pushing higher margin products pays off for AT Plastics
In a challenging market, AT Plastics (Brampton, ON) has posted a solid increase in the sales of specialty polymers...
In a challenging market, AT Plastics (Brampton, ON) has posted a solid increase in the sales of specialty polymers and films for the first quarter of 2003. When combined with cost reduction efforts, the effect is a 13.4% increase in EBITDA compared with the same period in 2002.
Early in the quarter the company took steps to manage costs and increase profitability by reorganizing and consolidating certain management and operation functions, and reducing its workforce by 8%.
"Our polymers business generated higher revenue per pound as volumes of higher-priced specialty products rose 5.3% compared to last year and price increases largely offset the impact of escalating raw material costs in the period," explains Gary Connaughty, president and CEO.
The company has been employing a target account program to push sales of higher-margin products.
In the films business, volumes increased 39.5% compared with last year, generating a 39.3% increase in sales, to $6.8 million.