Plastics giant CCL Industries shares dip as earnings miss expectations

TORONTO – CCL Industries shares hit a 52-week low on the Toronto Stock Exchange after the company reported third-quarter results that were below analyst expectations.

The label, packaging, and plastics giant says it had net earnings of $112.7 million or 63 cents per share in the quarter ending Sept. 30, up from $106.9 million or 60 cents per share for the same quarter last year.

Adjusted earnings per share came in at 66 cents, up from the 61 cents for the same quarter last year but below the 71 cents expected by analysts according to Thomson Reuters Eikon.

The company’s shares closed down $3.31 or 5.8 per cent at $53.50, having hit a 52-week low of $50.42 earlier in the day.

The Toronto-based company says it saw a slowing in its automotive division but that it was more than offset by good demand in the electronics market. Its Avery division saw a loss of market share in ring binders during the back-to-school season that hit profitability.

CCL Industries employs more than 20,000 people across 40 countries and operates a number of divisions including its Avery, Checkpoint and Innovia subsidiaries.

Companies in this story: (TSX:CCL.B)