Paper packaging company China Shengda Packaging Group has reported that the company's revenues for the third quarter ended 30 September 2012 decreased 1.8% to $33m from $33.6m in the same period of 2011.
Sales volume during the quarter also declined by 3.2 million square meters, or 3.6% to 84.4 million square meters from 87.6 million square meters in 2011.
During the quarter, color cartons accounted for 31.3% of the revenues and flexo cartons accounted for 68.7% compared to 28.3% and 71.7%, respectively for the same period of 2011.
The company's gross profit for the quarter stood at $6m as in the same period of 2011. Gross profit from flexo cartons decreased 1.5% to $3.8m from $3.9m and for color cartons increased 7.4% to $2.1m from $2m in 2011.
Revenue for the first nine months stood at $98.2m, up by 5.4% from 2011 revenue of $93.2m and gross profit stood at $17.3m compared to $19.2m in 2011.
China Shengda Packaging chief executive officer Daliang Teng said owing to slack demand resulting from macroeconomic headwinds faced by its customers the third-quarter results were below the company's expectations.
"Although this led to a decline in both sales volume and revenues, we managed to control raw material costs, largely maintain pricing, and improve sales mix in favor of higher-margin color cartons," Teng said.
China Shengda Packaging is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths.
