Evansville-based Berry Plastics says it booked $1.6 billion in sales last quarter — a record for the company — thanks in large part to its recent acquisition of North Carolina-based AVINTIV.
AVINTIV makes plastics-based materials that are used in personal-care, health care and building/construction products. Berry completed its acquisition of the company in October.
In an earnings report released on Tuesday, Berry said its net quarterly sales of $1.6 billion represented a 32 percent increase over sales during the same period a year earlier. Much of that increase came from its acquisition of AVINTIV.
Net income for the quarter was $59 million (47 cents per diluted share), up 55 percent from the $38 million (31 cents per diluted share) it earned a year earlier.
"We had a very strong quarterly performance, by far the best we've ever had in the history of the company," said Berry Chairman and Chief Executive Officer Jon Rich.
Rich said the integration of AVINTIV into Berry is going smoothly. He said this is in part because Berry has a long history of acquisitions and has completed more than 40 such deals over the years.
AVINTIV is part of what Berry calls its health, hygiene and specialties division, which makes items used in disposable diapers, disposable wipes and feminine hygiene products.
In a separate announcement last week, Berry said it is planning a significant investment in its health, hygiene and specialties division. The company said it plans to buy additional equipment for the production of the nonwoven fabrics used in diapers and other items.
The company said its current production facilities are running at full capacity, and this investment will allow it to increase its production.
The company says the investment will likely be in a location where Berry already has a facility, as opposed to a brand-new location. And it likely won't be in Evansville, which does not have a history of making these types of products.
But nothing's been decided yet.
"We're at the very beginning of evaluating where to put the investment, what type of machinery to acquire," Rich said.
Berry hopes to make those decisions this year, with the additional capacity ready to come on line in 2018.
The company also hasn't specified how much it plans to spend on this investment, but Rich said it will likely be in the range of $50-70 million.