| Fri 23 Feb 2001, 0:00 | | Copi - Unaudited Interim Results |
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CANADIAN OVERSEAS PACKAGING INDUSTRIES LIMITED
(Incorporated under the laws of Canada)
UNAUDITED INTERIM RESULTS TO SHAREHOLDERS FOR THE SIX-MONTH PERIOD ENDED
DECEMBER 31, 2000
INTERIM CONSOLIDATED STATEMENT OF EARNINGS
2000 1999
(C$000) (C$000)
Revenues
Sales 81 911 83,497
Interest and dividends 3 930 4,034
Gain on sale of marketable
securities 459
Share in net earnings of company
subject to significant influence 26 692 4,868
Foreign currency gains 114 -
112 647 92,858
Expenses
Cost of sales 65 443 65,200
Selling and administration 18 938 19,020
Loss on sale of marketable
securities 3 454
Interest
Current 910 1,519
Long-term 75 110
Foreign currency losses 1,361
88 820 87,210
Earnings from operations before
taxation and minority interest 23 827 5,648
Current taxation 439 534
Earnings from operations before
minority interest 23 388 5,114
Minority interest 572 347
Net earnings 23 960 5,461
Earnings per common share
(17,578,125 shares) C$1,36 C$0,31
SUMMARY OF THE FINANCIAL RESULTS
(Unless otherwise stated all figures are in Canadian currency and, except for
per share amounts, in millions of dollars as indicated by the abbreviation "M")
Summary of the Financial Results
Net earnings for the half year ended December 31, 2000 were $24.0M representing
a substantial increase over the $5.5M reported for the same period last year.
Earnings per share were $1.36 (1999: $0.31). The combined revenues for the
group's manufacturing and investment activities were $112.6M (1999: $92.9M).
Manufacturing Operations
Sales of corrugated fibreboard containers, multiwall paper sacks and other
products for the six months to December 31, 2000 were $81.9M (1999: $83.5M).
Tonnage throughput was slightly down versus the prior year. The segment of the
packaging industry in which we operate continues to experience extremely
difficult conditions with intense competition and low margins.
Investment Activities
Interest and dividends, which comprises income from term deposits, bonds and
equities, decreased slightly in the period to $3.9M (1999: $4.0M).
The loss on sale of marketable securities was $3.5M compared with a gain of
$0.5M for the same period last year.
Income from the share in net earnings of the company subject to significant
influence increased to $26.7M (1999: $4.9M). At December 31, 2000 the
Corporation's equity interest in the investment company was $190.1M (1999:
$143.9M) representing a 32% increase for the calendar year.
Foreign currency gains were $0.1M compared with a loss of $1.4M last year.
At December 31, 2000 equities were 65% of the portfolio; bonds and cash
represented 35%. These figures compare with 57% and 43% as at December 31, 1999
The combined cash & term deposits have been reduced in the twelve month period
from $85.4M to $55.0M at December 31, 2000. The reduction is due to the
dividend payment to shareholders in December 2000 and the Corporation's
decision to reduce some of its high interest bearing debt at the commencement
of this fiscal year.
Outlook
In our manufacturing operations adverse market conditions are likely to
continue for the remainder of this fiscal year and efforts are ongoing to
mitigate these pressures.
Although remaining cautious in our investment activities we are ready to
increase exposure to equities.
On Behalf of the Board of Directors
D. M. Eramian
Company Secretary February 23, 2001
