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FPA Releases First Quarter 2006 Pulse of the Industry Report
The First Quarter 2006 Pulse of the Industry Report is the most recent report in a series detailing the performance of the flexible packaging industry. The focus of the Report is short term, examining the first quarter 2006 versus the most recent period (fourth quarter 2005) and the same period a year ago (first quarter 2005).
The Report contains results of the First Quarter 2006 Pulse of the Industry Survey. Broad in scope, areas of business activity surveyed include net sales, volume/output, profitability, inventory levels, capital spending and capacity utilization. In addition, data was gathered to assess expectations for sales performance and volume/output in the second quarter 2006 versus the previous period (first quarter 2006).
Participation for the First Quarter 2006 Pulse of the Industry Survey was received from twenty-nine FPA converter member companies. These 29 companies represent a 49 percent participation rate and estimated revenue of more than $8 billion (38 percent of flexible packaging industry sales). The data presented in the Report details composite survey results as well as data for large (more than 100 million in annual revenue), mid (between $25-100 million in annual revenue) and small (less than $25 million in annual revenue) companies.
Following are highlights of the First Quarter 2006 Pulse of the Industry Report.
Net Sales
Sixty-nine percent of survey participants reported solidly higher first quarter 2006 sales than for the previous quarter (fourth quarter 2005); Twenty four percent reported lower net sales while seven percent retained current net sales levels.
Volume
Similar to reported net sales, 65 percent of FPA converter member survey participants reported higher first quarter 2006 volume than for the previous quarter (fourth quarter 2005); Twenty-seven percent reported lower volume levels and eight percent reported no change in volume levels.
Profitability
First Quarter Pulse of the Industry Survey results indicates that less than half (41 percent) of survey participants’ flexible packaging profit levels for first quarter 2006 were higher than profits for fourth quarter 2005; Fifty-two percent reported lower flexible packaging profit levels for the same periods.
Industry Expectations
Expectations for second quarter 2006 sales are optimistic. Fifty-nine percent of survey participants anticipating higher sales and volume performance; Thirty-three percent expect lower performance levels while seven percent of survey participants anticipate sales and volume performance to remain the same.
The First Quarter 2006 Pulse of the Industry Report is only available to FPA members. For more information, contact the Association at www.flexpack.org or (410) 694-0800. |