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Berry Global Reports Lower Earnings and Sales in Fiscal Third Quarter

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Berry Global, a leading packaging company based in Evansville, Indiana, experienced a decline in earnings and sales during its fiscal third quarter. This slowdown in demand affected both its major markets in North America and internationally.

Decrease in Profit and Sales

In comparison to the same quarter last year, Berry Global’s profit dropped from $207 million to $143 million. Earnings per share also declined from $1.58 to $1.18. After adjusting for one-time items, the company’s adjusted earnings per share were recorded at $1.90. However, this fell short of the $1.99 per share forecasted by analysts.

Similarly, sales decreased from $3.73 billion in the year-ago quarter to $3.23 billion this quarter. This figure also missed analyst expectations of $3.42 billion.

Factors Contributing to the Decline

The decrease in sales can be primarily attributed to lower selling prices and a 7% decline in volumes due to weaker demand within Berry Global’s consumer and industrial markets. However, the company did experience some growth in its foodservice sector.

This decline in volume negatively impacted operating income by $44 million. Additionally, there were $30 million of additional business integration costs and a $10 million expense associated with a third-party warehouse fire.

Market Response

As a result of the disappointing financial results, Berry Global’s shares dropped 2.5% to $60 during premarket trading.

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