AEP Industries (NASDAQ:AEPI) hit a 52-week low Thursday after it said low volumes driven by high competition and a still-staggering economy led to worse third-quarter earnings.
The plastic packager posted net income of $3.75 million, or 55 cents a share, compared with $5.4 million, or 79 cents a share, in the same quarter last year.
The results were much higher than the eight-cent loss predicted, on average, by analysts in a Thomson Reuters poll.
“The current economic climate continues to negatively affect our business, particularly in the parts of our business related to the housing and construction industries,” said AEP CEO Brendan Barba. “The marketplace continues to consolidate and competition, as always, is fierce.”
Revenue for the South Hackensack, NJ-based company was $204.9 million, up 8% from $189.7 million a year ago, though missing the Street’s view of $214.86 million.
Earnings were boosted by an increase in average selling prices, partially offset by a decrease in sales volume.