Skip to main content
Publish date:

Intertape Polymer on the Block

Revenue will fall sequentially.
Author:

Intertape Polymer (ITP) - Get IT Tech Packaging, Inc. Report hired TD Securities to shop for a buyer and accelerated a plant closing in a bid to cut costs.

"Having completed an in-depth operational and financial review, the Board of Directors has authorized the Company to evaluate the strategic and financial options that may be available to it and to initiate a process to explore ways of enhancing shareholder value," said Chairman Michael L. Richards. "The Board will consider a full range of alternatives with the best interests of the Company and its shareholders in mind."

Intertape projected revenue for the third quarter will be $195 million, compared to $222 million in the second quarter. The decline reflects a softening of demand in the North American housing markets. Intertape said it has continued to implement various cost reduction measures designed to align its cost base with anticipated lower volumes. It expects to begin to realize the benefit of its previously disclosed cost cutting measures, including the Brighton plant closure, which has been accelerated to Nov. 1, 2006. In addition, the company said it continues to make improvements in its working capital utilization.

Intertape said it anticipates that when it reports its third quarter results it may not be in compliance with certain financial covenants under its term credit agreement and will be endeavoring to seek any required amendment of its covenants under such agreement.

TheStreet Recommends