US packaging firm Spartech Corporation has reported 2010 fourth quarter net sales of $259.6m, up 7% from the prior year quarter.
The company said during the quarter, it reported operating loss of $73.1m.
Operating earnings excluding special items was $0.1m compared to $11.8m in the prior year fourth quarter.
The decrease in earnings primarily reflects inefficiencies due to disruptions from the plant consolidation efforts and equipment line moves, margin compression from increased competition and the reinstatement of temporary compensation reductions which were in effect in 2009.
Cash flows from operations were $4.2m for the fourth quarter and the company ended 2010 with $172.5m of debt.
For the fiscal year 2010 net sales were $1.02bn, up 10% from the prior year, reflecting a 5% increase in volume and the pass through of higher raw materials costs. Volume increases occurred across most of our end markets.
The reported operating loss of $61.1 million in 2010 included special items totaling $78.5m. Operating earnings excluding special items was $17.3m in 2010 compared to $34m in the prior year.
The decrease in earnings was primarily caused by the impact of inefficiencies due to disruptions from our plant consolidation efforts, equipment line moves and organizational changes, the impact of increases in material costs in the first half of 2010 which were not passed through as selling price increases on a timely basis, margin compression from increased competition and the reinstatement of temporary compensation reductions which were in effect in 2009.