Turnover dips at Ardagh despite US unit gains
Glass and metal packaging firm Ardagh announced a 1pc decline in its third-quarter revenues yesterday, despite gains at its American units.
The Irish-based company led by financier Paul Coulson said it also completed its transaction yesterday to acquire a 43pc stake in newly formed metal packaging company Trivium.
Mr Coulson said the quarter ending in September featured aggressive moves to reduce Ardagh's debt repayments, both by paying down debt with some of the $2.5bn (€2.2bn) netted from the Trivium deal, and wider debt restructuring that has pruned $45m annually from its interest payments.
"We took advantage of favourable markets during the quarter to further improve our debt maturity profile and obtain material interest savings," he said.
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Ardagh employs 16,000 people, and operates more than 50 metal and glass container factories in 12 countries.
The group's quarterly revenues fell by 1pc to $2.38bn versus the third quarter of 2018, influenced by unfavourable exchange rate effects, while revenue increased by 2pc on a constant currency basis.
It recorded earnings before interest, tax, depreciation and amortisation (ebitda) of $424m, which was 6pc higher than a year ago.
Turnover at its Metal Beverage Packaging Americas division rose by 5pc to $465m, and at its Glass Packaging North America unit by 1pc to $438m.
But the Metal Beverage Packaging Europe and Glass Packaging Europe units saw revenues dip by 1pc to $412m and $414m, respectively.
Trivium was created in July by merging Ardagh's Food and Specialty Metal Packaging unit with Exal Corporation, whose majority stakeholder is the Ontario Teachers' Pension Plan Board, one of the world's largest institutional investors.