Graham Packaging (York, Pennsylvania / USA; www.grahampackaging.com) said productivity initiatives and an improved product mix contributed to a reduction in its net loss for the fourth quarter. The company, which is majority owned by US private equity group Blackstone (New York; www.blackstone.com), registered a net loss of USD 46.6m for the fourth quarter of 2009 compared with a USD 95.0m loss a year earlier. It said net sales declined 3.8% to USD 534.7m due to a decrease in resin costs which was passed through to customers.

Operating income for the fourth quarter improved to USD 23.7m, from a loss of USD 38.3m for the fourth quarter of 2008. "Our fourth quarter profitability was slightly better than our expectations," said CEO Mark Burgess. "While sales were slightly lower because of resin costs, unit volumes showed some improvement as a result of stronger end markets and increased market penetration.” For the full year, Graham Packaging posted a net income of USD 14.3m compared with a USD 57.9m loss in 2008. Net sales decreased 11.3% to USD 2.27 bn.

Burgess said Graham Packaging remained cautious about prospects for 2010, despite improvements in volumes in the last two quarters. The company will remain focused on cost reductions and operational improvements in all areas of operations, he stated. Graham Packaging completed its IPO last month, raising USD 150m. “We intend to use our enhanced financial flexibility from the IPO and strong free cash flow to continue to de-lever and make strategic investments," Burgess remarked.