Pactiv Corporation (PTV) invested $12 million in a two-year program to upgrade equipment to increase the production of polystyrene food processor trays that would help meet the rise in consumer demand. The upgrade is scheduled for completion in early 2011.
This two-year program featured an improvement in technology of selected extrusion, thermoforming, padding, and packaging equipment and was carried out in four of Pactiv's manufacturing units. Polystyrene food processor trays are increasingly much sought after by consumers as it maintains the freshness, quality, safety, and food flavor of the packaged substance.
Apart from being light and durable, the polystyrene food processor trays manufactured by Pactiv also met the stringent standards set for food contact packaging by the U.S. Food and Drug Administration.
Recently, in July 2010, Pactiv invested $14.5 million in its Moorhead, Minnesota plant to produce molded-fiber, hinged-lid carryout containers under the brand EarthChoice Fiber Blend Hingeware. This investment marks the company's effort to manufacture eco-friendly products.
The adjusted earnings of Pactiv at the end of second-quarter 2010 were 56 cents per share compared with 61 cents in the year-ago comparable period. The Zacks Consensus Estimates for third quarter fiscal 2010, fiscal year 2010 and fiscal year 2011 are 59 cents per share, $2.21 per share and $2.48 per share, respectively.
Pactiv currently retains a Zacks #4 Rank (short-term Sell rating). We however maintain a Neutral rating on the stock.
The Lake Forest, Illinois company, Pactiv Corporation, is a manufacturer and seller of consumer and foodservice/food packaging products in the United States and worldwide.
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