Sales Rise for Bway Holding Company in 2Q10

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Researched by Industrial Info Resources (Sugar Land, Texas)--Bway Holding Company (NYSE:BWY) (Atlanta, Georgia), which operates through wholly owned subsidiary Bway Corporation (Atlanta), recently reported earnings results for the second quarter of the company's 2010 fiscal year. Bway Corporation is a manufacturer of plastic and metal containers. The company's net sales were up 20% year over year, rising from $206.1 million in 2Q09 to $248 million in 2Q10.

"The most significant favorable change during the quarter was the level of volume we realized," said President and CEO Ken Roessler in a conference call. "Overall volume, excluding the effects of acquisitions, increased approximately 9% year over year for the quarter, with metal packaging gaining higher than plastic."

Plastics sales volumes were up 6.2% excluding acquisitions. Sales in the segment were $92.5 million, compared to $72.5 million in 2Q09. Metals sales volumes were up 10.9% compared to the same period last year. Metals segment sales were $155.5, compared to $133.6 million in 2Q09.

The company has made several restructuring moves in the past year. In August 2009, Bway purchased Central Can Company in Chicago, Illinois, which led to the closure of two of Bway's plants in Chicago and another plant in Brampton, Ontario, in order to consolidate these operations into the newly acquired facility. In October 2009, Bway acquired Ball Corporation's (NYSE:BLL) (Broomfield, Colorado) plastic packaging business in Newnan, Georgia. The closure of the Bway's plastic injection-molding plant in Toccoa, Georgia, is scheduled to wrap up in July. For additional information, see April 13, 2010, article - Bway Holding Company to Close Georgia Plastics Plant.

On March 29, Bway announced that it would be acquired by Madison Dearborn Partners LLC (Chicago, Illinois) for $915 million.

Like other companies, Bway has undergone a significant amount of restructuring since the beginning of the economic slowdown. This restructuring, plus what seems to be the beginning of an economic upturn, has resulted in solid sales for the quarter. "Although we believe a substantial portion of the gain relates to inventory restocking," said Roessler, "we are cautiously taking the change as a positive sign for our markets and their potential recovery."

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