Anchor Glass earnings drop

Date: 14 March 2005

Anchor Glass Container Corp. announced a 6-percent drop in sales for the fourth quarter of 2004. The Tampa-based manufacturer said it lost $81.4 million, or $3.30 per share, on sales of $157 million.

For the same period last year it lost $11.3 million on sales of $167.2 million.

Peter Reno, interim CFO, said "Anchor's fourth quarter results were pressured by continued rising energy prices resulting in higher raw materials costs, higher freight charges and higher production costs that the company was not able to pass through to customers," in a media release. Reno also said that beer and consumer product volumes showed lower fourth quarter trends.

Much of the loss, $48.7 million, was attributed to a plant closing and Connellsville, Pa., and severance costs resulting from reductions in force, primarily at the corporate office.

On Feb. 14, Anchor Glass entered into a $20-million revolving credit facility with Madeleine LLC.

Anchor Glass (NASDAQ: AGCC) has eight facilities where it produces a line of flint (clear), amber, green and other colored glass containers for the beer, beverage, food, liquor and flavored alcoholic beverage markets.