CCL Industries, a provider of specialty label, security and packaging solutions, said that its net earnings were $114.2m for the fourth quarter of 2018, compared to $169.4m for the same period last year.
CCL said that sales for Q4 increased 8% to $1.33bn, compared to $1.23bn for the same period in 2017.
For the full year of 2018, the company’s sales increased to $5.16bn, compared against the same period last year.
Operating income has increased by 5.2% to $775.7m for the full year of 2018, compared to $4.75bn in the year-ago period.
The company has reported operating income of $189.2m for the fourth quarter of 2018, compared to $205.1m for the comparable quarter of 2017.
The company said that $4.3m and $15.2m are non-cash acquisition accounting adjustments for 2018 and 2017 to fair value the acquired inventory from the Treofan and Innovia acquisitions.
From 1 January 2018, the firm changed its reportable segments to integrate all entities earlier reported within the container segment in the CCL Segment to align with the current management structure and reporting.
CCL Industries president and CEO Geoffrey Martin said: “As expected, fourth quarter results were comparatively challenging for the CCL Segment, given the currency adjusted 41% increase in operating income reported for the same period of 2017.
“Strong organic growth and solid operating performances at our CCL Label business only partly offset slower end markets and plant start-up costs at CCL Design and especially tough comparisons at CCL Secure on a large new currency issue in the prior year period.
“Segment organic growth, excluding CCL Secure, was 7.0%. Checkpoint performance reflects the absence of large, new technology installations this quarter that boosted the prior year period; we will face the same issue for the first quarter of 2019. Recurring revenue product lines, including apparel labels with RFID inlays, posted solid growth.”
With 168 production facilities in 40 countries, CCL Industries produces pressure sensitive and specialty extruded film materials, which can be used in a range of decorative, instructional, functional and security applications for government institutions.
The film materials can also be used in the consumer packaging, healthcare and chemicals, consumer electronic device and automotive markets.