Commercialization, a patented order scavenging films for the poultry market is solving a long-term issue for our meat customers. Previously, when a barrier package containing poultry was open, the customer would be presented with an offensive odor. This new patented film scavenges this odor so that the customer never experiences it. Another example is our packaging for frozen sandwiches that are microwavable in the package. The technology in our films allow the sandwich to be warmed in the microwave, while maintaining the crispness of the bread.
In addition, we recently developed a breakthrough medical device package for artificial joints. For example, new replacements need to be packaged extensively to protect them before they are placed in a thermoformed container. We have developed a polyester package with a polyurethane coating that protects the new replacement, eliminates the need for additional packaging and substantially reduces damage during distribution.
While economic conditions are negatively impacting volumes across all regions as consumers curve spending, wherever they can. Our food packaging markets will be more stable than the most, and we will to continue to focus on new business opportunities and prudent cost management to position Bemis for earnings growth in the feature.
There are a number of additional factors impacting our performance and our revised guidance this quarter, and I'd like to take some time to go through each of these factors with you. These factors include the impact of raw material costs, sales mix and currency. First, let's talk about raw material cost.The resin costs headwinds that impacted results in 2011 have been relatively calm during the first half of 2012, and we expect modest raw material cost tailwinds during the second half of this year. The costs of commodity raw materials such as polyethylene had increased during the first quarter of this year but began to soften again during the second quarter. Overall, we expect commodity resin costs to remain flat during the third quarter, providing short-term benefits before selling prices are adjusted. We expect modest commodity resin cost increases later in the year.Read the rest of this transcript for free on seekingalpha.com
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