Valuation of the packaging and container industry

Weekly Corporate Growth Report, May 5, 1997

It is likely that the Packaging and Container (P&C) Industry will only experience moderate growth during 1997. There have been general improvements in various segments of the industry, but some sectors are being crippled by the shifting preferences of endusers. Fortunately, restructuring efforts by some companies are beginning to make an impression on their bottom-lines.

Most P&C companies will be posting improved earnings for the first three months of 1997 relative to 1996. Even so, the industry is expected to experience only modest growth of between two and three percent. This will mostly be on incremental volume gains offset by lower selling prices.

The best way for companies in this industry to expand their market share and increase profitability will be through consolidation. International acquisition activity has also increased over the past year. These trends are expected to continue as companies search for new sources of long-term revenue growth.